Oil eases, bringing some respite to stocks and battered bonds

Key Points:

• World stocks experienced a slight rise and oil prices declined after US President Donald Trump stated there would be no US attack on Iran before the midterm elections, reducing immediate energy supply concerns.
• Investors remained cautious due to ongoing fundraising by tech companies and persistently high borrowing costs in major economies, with chip stocks under pressure amid mixed revenue reports from OpenAI.
• US Treasury yields increased slightly after strong demand for 30-year government bonds, while European government borrowing costs generally fell, particularly in France where debt concerns have been prominent.
• Rising energy costs, anticipated central bank rate hikes, and growing government debt have driven a global bond selloff, increasing borrowing costs and making investors more selective about AI-related investments.
• The US dollar strengthened against the euro, which declined amid French debt worries, while gold prices rose over 1%, supported by a softer dollar and lower oil prices.