European Midday Briefing: Shares Rise, Oil Moves Higher After Trump Rejects Iran's Peace Deal

MARKET WRAPS

Stocks:

European shares rose Monday, boosted by pharmaceutical and auto stocks, while technology weakened.

Oil was pushed higher on yet another setback in efforts to resolve the Middle East conflict after President Donald Trump rejected Iran's seven-day peace deal and said he plans to continue bombing Iran after the midterm elections in November.

Peace negotiators are now pressing Iran to make a concession on its nuclear program to revive ceasefire talks with the U.S.

Tickmill Group warned that if energy prices remain elevated, central banks will have less room to ease and more reason to keep inflation risks front and center.

Investors are raising bets on the Bank of England increasing interest rates in November.

U.S. Markets:

Stock futures were down with both the Dow and Nasdaq tracking lower as market sentiment wilted at the start of a week that includes crucial releases of U.S. inflation and jobs data.

Investors continue to weigh the risk associated with stocks linked to A.I. as technology companies continue to express caution about the speed of the development.

Meanwhile, a lack of issuance could bring some respite to Treasurys this week.

Forex:

The euro fell but could stabilize against the dollar this week as its recent decline looks somewhat overdone, ING said.

The dollar rose as hopes for U.S.-Iran diplomacy is fading, lifting oil prices and driving investors towards safe-haven assets.

Bitcoin fell.

Bonds:

Eurozone government bond yields opened slightly lower but could face a challenging week as oil prices remain elevated and issuance will be heavy.

Yields on U.K. government bonds edged higher and remained at elevated levels.

Treasury yields rose on the day pressured by higher oil prices, trading close to but below recent multiyear highs.

Energy:

Oil prices climbed more than 2%, keeping the geopolitical risk premium elevated.

Gas

European gas prices rose more than 2%.

Metals:

Gold prices dropped as rising oil prices reinforce expectations that the Fed might raise interest rates further next month.

EMEA HEADLINES

TotalEnergies Sets Out Growth Plan Until 2035

TotalEnergies laid out its growth objectives to expand energy capacity beyond 2030, supported by billions of dollars in investment each year.

The French energy company said it plans to invest between $14 billion and $17 billion per year between 2027 and 2032. It expects its oil and gas segment to have around 2% to 3% output growth per year between 2030 to 2035, enabled by its portfolio of organic projects.

Looking at Europe's Glass as Half-Full

As Europe faces a host of economic challenges, an excessive despondency about its current condition may be one of the more pernicious.

That is the contention of Marieke Blom, chief economist at Dutch bank ING, who has embarked on a mission to correct some of the gloomier misconceptions.

Egypt Warned Netanyahu of Impending Attack on Israel Before Oct. 7

Egypt's intelligence chief, Abbas Kamel, was growing anxious.

It was early October 2023 and two Egyptian warnings about signs of an impending attack from Gaza had gone unheeded by Israel. Kamel called Israeli Prime Minister Benjamin Netanyahu to deliver a third alert, said officials in an Arab government.

GLOBAL NEWS

Treasury Yields Rise Amid U.S.-Iran Diplomatic Stalemate

U.S. Treasury yields rose in Asian trade on Monday as yet another setback in efforts to resolve the Middle East conflict pushed oil prices higher.

Peace negotiators are pressing Iran to make a concession on its nuclear program to revive ceasefire talks with the U.S. after President Trump rejected Iran's truce proposal.

Stock Futures Are Slipping Ahead of Inflation, Jobs Data

U.S. stock futures are slipping ahead of a week that will highlight inflation and jobs data.

Just after 6 p.m. Eastern time, Dow Jones Industrial Average futures were down 104 points or 0.2%, while S&P 500 futures were down 0.2% as were Nasdaq 100 futures. Oil futures were up 1% above $93 a barrel.

Six Investing Pros Weigh In on Surging Yields-and How to Trade Them

Trouble in the bond market is forcing investors to anticipate where the economy-and their portfolios-are headed.

The yield on the 10-year Treasury note recently surged past 5% to hit fresh 19-year highs. U.S. debt has topped a record $40 trillion. War with Iran is pushing oil prices higher. The Federal Reserve is expected to keep raising interest rates to tame inflation, suggesting mortgage and other borrowing costs won't meaningfully ease soon.

U.S. Says No Plans to Sell Weapons to China After Perdue Comments

Trump administration officials said the U.S. has no plans to sell weapons to Beijing after Ambassador David Perdue told an interviewer that the president "at one point" offered to make a deal to transfer American arms to Chinese leader Xi Jinping.

During a Sunday discussion about weapons sales to Taiwan, the ambassador to China told Fox News that "President Trump continues to say: hey, we sell arms to other people around the world" then added "he actually asked President Xi would he like to buy some at one point."

Defense Firms Are Rushing to Boost Missile Output. It's Coming Too Late.

A Tucson, Ariz., factory run by defense giant RTX is working around the clock to increase production of Tomahawk and other missiles in short supply for U.S. operations against Iran.

Lockheed Martin is adding hundreds of workers in Arkansas to triple its output of much-needed Patriot interceptors. Subcontractors including Boeing, L3Harris and Northrop Grumman have broken ground on new assembly lines to meet soaring demand for electronics, rocket motors and other components needed for the weapons.

Write to nina.kienle@wsj.com

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

September 28, 2026 05:14 ET (09:14 GMT)