MARKET WRAPS

European stocks were gaining Monday as oil prices declined and as investors took scope of the latest pause in the U.S. conflict with Iran

ahead of what will be a data-heavy week.

President Trump has refrained from a major escalation against Iran in the hope diplomacy could make better progress in ending the hostilities. The president had been poised to launch strikes which could have lasted up to two weeks.

As a result, the price of oil, which last week topped $100 a barrel for Brent, stood near $90 Monday.

Though the fall in oil weighed on the region's energy stocks , European indexes including the FTSE 100, the CAC 40 and the DAX were in positive territory approaching midday. The pan-European Stoxx 600 index was also up.

Those moves come ahead of several key events scheduled this week. The main focus will likely be Wednesday's Federal Reserve interest decision, but investors also have second-quarter eurozone GDP data to look forward to the following day.

German, French and Spanish GDP data, as well as the Bank of England's rate decision , are expected Thursday. Eurozone inflation data for July are anticipated on Friday.

Market Insight

Jefferies contends that earnings so far for mining and metals companies have been better than anticipated , with cost inflation limited despite all the potential inflationary pressures in the second quarter.

Economic Insight

The Fed is expected to keep the fed funds rate stable

at this week's meeting, and the impact of the decision will hinge heavily on how Chairman Kevin Warsh frames the decision and path ahead, according to Goldman Sachs.

Money markets price in a 31.5% probability of a rate hike this week, while the majority of the market anticipates unchanged rates.

Investors are likely to focus on the number of potential dissenting votes

at the Fed's interest-rate decision on Wednesday, LBBW said.

"We believe it is possible that there could be up to three dissenting votes, given that a bloc of this size had already voted against the Fed's then 'dovish' forward guidance back in April," it said, adding that a unanimous decision in favor of a wait-and-see policy stance would shake market participants' current belief that a hike in September is practically a foregone conclusion.

U.S. Markets:

Equities were poised to start the trading week on a high note as futures gained ground.

Forex:

The euro

rose against the dollar but it remained vulnerable, ING said.

"Any renewed military strikes could quickly send Brent crude back to $100 per barrel and the euro below $1.1380," it said, adding that potential dollar buying ahead of the Fed decision could also weigh on the currency.

The dollar

fell against a basket of currencies as oil prices declined and demand for safe havens waned.

Bonds:

Eurozone government bond yields

fell, tracking Treasury yields. Bond yields fell alongside a significant retreat in oil prices, as Trump prioritized diplomatic solutions to reopen the Strait of Hormuz.

There are c hances for German Bunds to stabilize further , Commerzbank said, adding that the 10-year Bund yield faces upside resistance at year-to-date highs around 3.21%, while a rate hike by the European Central Bank in September is almost fully priced.

Yields on U.K. government bonds

fell as oil prices declined, easing concerns about inflation.

Treasury yields fell

as Trump attempted to revive diplomacy to open the Strait of Hormuz.

Energy:

Oil prices plunged

more than 5% after the U.S. paused military strikes against Iran, raising the prospect of renewed diplomatic efforts to end the five-month long conflict.

Natural gas

European gas prices

tumbled on hopes that a pause in fighting between the U.S. and Iran could pave the way for renewed diplomatic efforts.

Metals:

Gold prices

rose after the U.S. paused military strikes against Iran.

"The easing in geopolitical tensions has reduced inflation concerns and could lessen pressure on the Fed to tighten policy further, providing near-term support for gold ahead of this week's closely watched Fed meeting," MUFG.

EMEA HEADLINES

AstraZeneca Posts Sales Growth on Oncology Strength

AstraZeneca reported higher second-quarter revenue, driven by growth in oncology sales, and reiterated its 2030 revenue target after a clinical trial failure earlier this month.

The U.K. drugmaker said total revenue for the quarter came to $15.38 billion compared with $14.46 billion for the same period last year, with a 5% increase when adjusted for currency changes.

Vodafone Raises Guidance on Safaricom Deal

Vodafone Group raised its fiscal 2027 guidance to include the Safaricom deal, saying its key earnings metric should come in at the upper end of the new outlook.

The U.K. telecommunications company now expects adjusted earnings before interest, taxes, depreciation, amortization after leases of between 13 billion and 13.3 billion euros ($14.78 billion-$15.12 billion). The group previously guided for 11.9 billion to 12.2 billion euros.

Kenneth Dart's Candle Lake Crosses Mandatory Bid Threshold For Sweden's Evolution

Billionaire U.S. investor Kenneth Dart has raised his stake in Swedish gaming group Evolution to around 30.02%, passing the threshold that requires the launch of a mandatory takeover offer.

Dart, through his Cayman Islands-based Candle Lake, has acquired 2.05 million shares in Evolution, which brings his total holding to 59.8 million shares, according to a disclosure notice late Friday.

Argenx to Buy Forte Biosciences for $2.2 Billion

Argenx said it reached an agreement to buy Forte Biosciences for $2.2 billion, moving to strengthen its immunology pipeline.

European pharmaceutical company Argenx is acquiring Nasdaq-listed Forte for $77 a share in cash, the companies said Monday. The price represents a 41% premium to Forte's closing price on Friday.

Wildfires Rage Across Europe, Threatening France's Bordeaux Region

PARIS-Firefighters were struggling Sunday to contain wildfires pushing dangerously close to the city of Bordeaux in southwestern France, leading authorities to evacuate tens of thousands of people from the surrounding region.

The fire, which began on Wednesday, has burned more than 100,000 acres in the Gironde region, a popular tourist destination, and destroyed 240 houses. On Sunday, the fire was just 10 miles away from the Bordeaux metropolitan area, which is home to more than 850,000 people, according to local authorities.

GLOBAL NEWS

Investors May Pay a Price for the Fed's Zipped Lip

The Federal Reserve is widely expected to keep interest rates unchanged at the conclusion of its July 28-29 policy meeting. Yet, traders are still pricing in a 38% chance of a interest-rate hike as of Friday, up from 12.8% a week ago, based on the CME FedWatch tool.

The disconnect may be the new normal under Fed Chairman Kevin Warsh, who has disavowed forward guidance, or public commentary on the Fed's economic and interest-rate outlook. Investors could pay the price in increased uncertainty and more market volatility for both stocks and bonds.

Big Companies Are Starting to Hire Again, Defying Predictions of AI Wipeout

America's biggest companies say they might need more people after all.

For months, major employers treated hiring as an expensive last resort. Now, a shift is emerging across industries. Companies ranging from railroad giant CSX to Google parent Alphabet have told investors in recent days that they plan to hire to meet growth goals or to seize on emerging technologies.

Indonesia Central Bank Chief Resigns Unexpectedly

Long-serving Bank Indonesia Gov. Perry Warjiyo stepped down in a surprise move, the latest leadership change under the Prabowo administration that is likely to stoke worries about central bank independence and economic policymaking in Southeast Asia's largest nation.

State Secretary Minister Prasetyo Hadi announced the resignation at a press conference in Jakarta on Monday, which wasn't attended by Warjiyo. He said President Prabowo Subianto has accepted the central bank chief's resignation.

The Treasury market is sending Fed Chair Kevin Warsh a clear warning about rates

The U.S. bond market has a warning for Federal Reserve Chair Kevin Warsh: Tough talk on inflation isn't enough.

The outbreak of new Iran-war hostilities in July took Wall Street by surprise, jolting global crude-oil prices BRN00 briefly above $100 a barrel and triggering another selloff in the crucial $30 trillion Treasury market.

Unreleased Documentary Footage Captures Graham's Obsessive Push for Iran War

Sen. Lindsey Graham planned to travel to Florida in early March to persuade President Trump to join Israel in the bombing of Hezbollah in Lebanon-until a friend talked him out of it.

The friend, Israeli Prime Minister Benjamin Netanyahu, told him on a call before the trip that bringing the U.S. into the operation, in the midst of the Iran war, was going too far, too fast, according to unreleased footage from a documentary about the South Carolina Republican lawmaker that was being filmed before he died earlier this month.

U.S. and China Are Jockeying for Drone Supremacy on Mount Everest

One day in May, Sergio Gor, President Trump's special envoy for South Asia, appeared at the base camp of Mount Everest. Dressed in a black jacket emblazoned with "Trump Force One," Gor sang the praises of the drone displayed next to him.

The U.S. is pushing an American drone to challenge China in a new race to support mountaineers, setting up an unusual superpower contest in one of the most remote areas of the world.

Write to pierre.bertrand@wsj.com

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July 27, 2026 04:57 ET (08:57 GMT)

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