European stocks rise on global sentiment.
European stocks rose Tuesday, tracking gains on Wall Street, while investors digested more corporate results ahead of the release of final regional activity data.
At 03:02 ET (07:02 GMT), the DAX index in Germany climbed 0.6%, the CAC 40 in France gained 0.3% and the FTSE 100 in the U.K. rose 0.5%.
The main Wall Street indices ended sharply higher on Monday, with the benchmark S&P 500 gaining 1.5% and snapping a four-day losing run, as investors positioned for Federal Reserve interest rate cuts after last week’s weaker-than-expected nonfarm payrolls data.
Eurozone services PMIs due
This positive sentiment has crossed the Atlantic, with investors hopeful that the recently announced trade agreement between the European Union and the U.S. will provide more certainty for corporations as the year progresses.
Gold prices hold gains.
Gold prices were steady in Asian trade on Tuesday after three days of gains, underpinned by growing expectations that the Federal Reserve will deliver a rate cut in September amid U.S. economic concerns and intensifying trade tensions.
Spot Gold was largely unchanged at $3,372.25 an ounce, while Gold Futures for December were also muted at $3,425.02/oz by 01:00 ET (05:00 GMT).
Gold supported by Fed cut bets, tariff tensions
Bullion has risen in the last three consecutive sessions, with an over 2% jump on Friday after the release of U.S. nonfarm payrolls data.
Data on Friday showed that U.S. nonfarm payrolls rose by just 73,000 in July, well below forecasts, accompanied by downward revisions to May and June figures. The unemployment rate ticked up to 4.2%, reinforcing fears of a slowing U.S. economy.
The weak data resulted in markets pricing for a 92% probability of a Fed rate cut in September, according to the CME FedWatch tool.
Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making bullion more attractive to investors.
Oil steadies.
Oil was little changed on Tuesday as traders assessed rising OPEC+ supply and worries of weaker global demand, against U.S. President Donald Trump’s threats to India over its Russian oil purchases.
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.
Brent crude futures were down 26 cents, or 0.4%, to $68.50 a barrel at 0800 GMT, while U.S. West Texas Intermediate crude was down 7 cents at $66.22. Both contracts fell by more than 1% on Monday to settle at their lowest in a week.
Trump on Monday again threatened higher tariffs on Indian goods over the country’s Russian oil purchases. New Delhi called his attack “unjustified” and vowed to protect its economic interests, deepening a trade rift between the two countries.
Oil’s limited move since then indicates that traders are sceptical a supply disruption will happen, said John Evans of oil broker PVM in a report.
He questioned whether Trump would risk higher oil prices, which “would be the inevitable outcome of penalising Russian energy customers”.
India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.
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