Market Talks covering the impact of U.S. Politics and White House policies on companies and markets. Published exclusively on Dow Jones Newswires throughout the day.

0312 ET - Eurozone government bond yields open higher, tracking U.S. Treasury yield moves, alongside a rise in oil prices. That said, yields remain below recent multiyear highs amid the prospect of diplomatic progress between the U.S. and Iran after U.S. President Trump signaled readiness to meet his Iranian counterpart Masoud Pezeshkian at the UN meeting. The 10-year German Bund yield rises 3.1 basis points to 3.479%, the 10-year Italian BTP yield is up 4.6 basis points at 4.372%, and the 10-year French OAT yield rises 4.8 basis points to 4.507%, according to Tradeweb. (emese.bartha@wsj.com)

0226 ET - U.S. Treasury yields open higher in European trade after a pause in trading in Asian hours as the Tokyo market is closed. The driver is an increase in oil prices, even as investors look out for some diplomatic progress between the U.S. and Iran with the possibility of a meeting between the presidents of both countries at the UN meeting. Regarding a Trump-Xi summit, "for markets, the big question is what's going to happen when the current one-year trade truce expires in November, and whilst the general tone remains positive, there still isn't an agreement yet," Deutsche Bank strategists say in a note. The 10-year Treasury yield rises 1.9 bps to 4.981%, according to Tradeweb. (emese.bartha@wsj.com)

0150 ET - Global bond markets are likely to focus on the prospect of diplomatic progress between the U.S. and Iran at the U.N. meeting in New York with President Trump's speech on the agenda. Trump has signaled readiness to meet Iranian President Masoud Pezeshkian. The recent fall in oil prices helped bond yields decline. Brent is higher on Tuesday and was last up 1.4% at $101.75 per barrel. On Monday, the 10-year U.S. Treasury yield closed at 4.949%, while the 10-year German Bund yield ended at 3.455%, according to LSEG. (emese.bartha@wsj.com)

0006 ET - Bank Indonesia is expected to keep its benchmark seven-day reverse repo rate steady at 5.75% on Wednesday, according to nine out of ten economists polled by The Wall Street Journal. One economist forecasts BI to raise the policy rate by 25 bp to 6.0%. A stable rupiah could give BI room to stay on hold in its September meeting, HSBC economists say in a note. However, developments in oil prices, El Nino and the dollar could create risks to inflation, the fiscal deficit and trade balance, potentially weakening the rupiah later in the year, they say. HSBC expects BI's next rate hike to come in 4Q, taking the benchmark rate to 6.0%. (yingxian.wong@wsj.com)

1328 ET - The AI trade is continuing to find strength with chip makers gaining strongly. Meta is also up 10% helped by the popularity of its Muse AI agent, the most downloaded free iPhone app in the U.S., according to Sensor Tower. The ubiquity of AI has prompted questions about liability, with the CEOs of OpenAI and Anthropic signaling that the U.S. government may need to take an active role in regulation. However, Treasury Secretary Scott Bessent says on CNBC, that he doesn't agree. "What did they try to do last week? It was, 'Well there's a 10% chance that we could destroy the world, but we want the government to give us a liability shield.' That's good business for them, bad business for the American people." (patrick.sheridan@wsj.com)

0936 ET - The Chinese yuan could strengthen further if a summit between President Trump and his Chinese counterpart Xi Jinping on Thursday proves constructive, HSBC's Paul Mackel says in a note. An extension to the trade truce reached in Busan, South Korea, in 2025 would bode well for the yuan, he says. The People's Bank of China has also recently increased its daily fixings for the dollar versus the yuan, showing more tolerance for yuan appreciation. "This could be partly related to a busy political calendar as well with the Xi-Trump meetings this week and an expected EU summit in mid-October." The dollar trades steady at 6.6953 yuan after reaching 6.6947 earlier, its lowest level since January 2023, according to LSEG. (renae.dyer@wsj.com)

0622 ET - Uncertainty over France and Germany's political outlook could test the euro's resilience versus the dollar, HSBC's Paul Mackel says in a note. "One should not conclude the uncertainty around U.S. mid-terms is dollar negative when there are European political ambiguities too." The risk of a no-confidence vote in the French government lingers after Prime Minister Sebastien Lecornu said he would reduce fiscal spending by 54 billion euros in 2027, he says. In Germany, Chancellor Friedrich Merz's Christian Democratic Union suffered heavy losses in two state elections at the weekend. The euro trades flat at $1.1479. (renae.dyer@wsj.com)

0334 ET - The losses suffered by Germany's ruling Christian Democratic Union in state elections should have a limited impact on the euro, ING's Francesco Pesole says in a note. The results of the election mostly reflect local dynamics rather than a verdict on Chancellor Friedrich Merz's reforms, he says. Still, delivering that agenda could become more challenging with CDU support falling and the political landscape becoming increasingly fragmented, he says. "These developments add some clouds to the euro, but are not enough to displace rate differentials and oil as its primary drivers." The euro falls 0.1% to $1.1474.