MARKET WRAPS

European stocks were mostly higher Tuesday, struggling to replicate the momentum of Monday's session.

Utilities and technology stocks gained while banks slid at the opening bell, as investor focus turned to New York and any signs of diplomatic progress between the U.S. and Iran.

World leaders will be meeting at the U.N General Assembly Tuesday and President Trump is expected to address the annual summit and meet with a number of leaders from the Middle East.

It wasn't clear if direct talks would take place between the U.S. and Iran and U.N. Secretary-General António Guterres himself seemed to downplay the prospect in New York.

Oil prices, therefore, rose ahead of the assembly, reversing four consecutive sessions of losses as the market assessed the continuing risks to Middle Eastern supply.

Approaching midday, the FTSE 100, the CAC 40 and the pan-European Stoxx 600 index were up. The DAX was down. Energy stocks rose.

Elsewhere, the U.K. deepened its budget deficit as the government borrowed more in August on year than it brought in.

Expected later will be Eurozone flash consumer confidence data for September.

U.S. Markets:

U.S.futures were stable following after stocks had rallied in the prior session.

Forex:

The dollar traded steady but remained near recent seven-week highs, lifted by the prospect of the Federal Reserve raising interest rates further.

Bitcoin eased slightly after reaching its highest level since late January on Monday, driven by U.S. regulatory progress, stronger exchange-traded-fund inflows and a broad-based rally in risky assets.

Bonds:

Eurozone government bond opened higher, tracking Treasury yield moves, alongside a rise in oil prices.

Yields on U.K. government bonds rose following higher than expected public sector borrowing for August.

The Treasury's auction of two-year notes on Tuesday might face headwinds, making concessions necessary for a solid takedown, J.P. Morgan said.

Energy:

Oil prices climbed more than 1.5% after four consecutive sessions of losses, with investors turning their attention to the prospect of U.S.-Iran diplomatic talks on the sidelines of the U.N. General Assembly.

Metals:

Gold

Gold futures traded lower but remained within the $4,300-$4,400 range, as rising U.S. Treasury yields and a rebound in crude prices weigh on the precious metal.

Silver

Silver was facing competing forces as tighter monetary policy raised the opportunity cost of holding nonyielding assets, while the metal's industrial role provided support, Zaye Capital Markets said.

Copper

Copper prices rose above the $14,700-a-metric-ton mark, supported by a tight supply outlook and a rebound in tech stocks.

Aluminum

Increases in Chinese and European aluminum output won't be enough to pull the global market out of deficit this year, Commonwealth Bank of Australia said.

EMEA HEADLINES

Smiths Group Shares Rise After Better-Than-Expected Results

Smiths Group shares rose after the U.K. industrial-engineering company reported fiscal-year results that beat analysts' expectations and projected an acceleration in top-line growth for the year ahead.

Shares in Smiths Group were up 4.6% in early European trading Tuesday, making the company one of the top gainers in the FTSE 100 index. The stock has gained 15% in the year to date.

Roche Says Drug Helped Patients Reduce Blood-Sugar Levels, Weight in Trial

Roche Holding said an obesity drug candidate met the primary objectives of a midstage clinical trial by helping patients reduce their blood glucose and body weight.

The Swiss pharmaceutical company said Tuesday that the study results for the drug, enicepatide, reinforce its ambitions to rapidly develop its portfolio of medicines for people with obesity, diabetes and cardiovascular disease.

Travel Group TUI Tightens Earnings Guidance, Citing Strong Vacation Demand

TUI narrowed its annual guidance, saying strong demand for its vacation segment and improved booking trends for its airline put it on track to deliver robust underlying earnings.

For the year through Sept. 30, the German travel group now expects to report underlying earnings before interest and taxes of between 1.2 billion and 1.3 billion euros ($1.38 billion-$1.49 billion) at constant currency. It had previously guided for a result ranging from 1.1 billion to 1.4 billion euros.

Paper Bottles Are Coming to Stores. Why They're More Than a Novelty.

Did these guys actually crack the code on making an environmentally-friendly paper bottle?

Six years ago, a bunch of scientists at the British drinks giant Diageo set out to create such a bottle, and now they're now opening a factory near Glasgow, Scotland, that will pump out 40 million of them a year.

GLOBAL NEWS

In Trump, Xi Sees 'Rare Window' to Convince Taiwan That Resistance Is Futile

In April, the leader of Taiwan's main opposition party traveled to mainland China for a red-carpet six-day tour, the first such visit in nearly a decade.

Officials treated Cheng Li-wun, chairwoman of the Kuomintang, or KMT, to high-level meetings and a Shanghai river cruise. The chairman of Meituan, one of China's biggest tech companies, gave Cheng a plushy kangaroo, the corporate mascot. Capping it off, Cheng got an audience with Chinese leader Xi Jinping.

Saudi Arabia Spent Months Trying to Bypass Hormuz. Now There's No Way Around It.

DUBAI-Saudi Arabia spent months rerouting oil across the desert to circumvent the Strait of Hormuz. Now, with its Red Sea bypass route disrupted by attacks, the world's oil kingpin is having to return to the waterway it was trying to avoid in the first place.

Saudi Aramco, the country's state-controlled oil giant, is loading more oil onto tankers in the Persian Gulf and then taking its chances sending them through the Strait of Hormuz. The company has told several of its customers in Asia-its most important oil market-to pick up shipments just outside the strait off the coast of Oman, people familiar with the matter said.

In the Baltics, NATO Forces Are Trying to Learn the New Way of War

DAUDZEVA, Latvia-Wearing strips of red tape on their helmets, Danish soldiers stealthily moved through the pine forest and then, unleashing a firestorm, overran a position held by Spanish troops.

"Todos muertos"-"everyone is dead"-quipped one of the Spanish soldiers, relaxing under an armored vehicle that raised its cannon to signify it had been destroyed.

Write to nina.kienle@wsj.com