MARKET WRAPS

Watch For:

Eurozone flash consumer confidence; U.K. public sector finances; trading updates from Smiths Group, Kingfisher, TUI, Exor

Opening Call:

European stock futures traded higher early Tuesday. Asian stock benchmarks strengthened; the dollar was down; Treasury yields inched lower; while oil futures rose and gold fell.

Equities:

Stock futures point to a higher open in Europe, after surging tech shares lifted the Nasdaq Composite to a record close. Meta's free artificial-intelligence assistant jumped to the top of Apple's App Store, boosting shares 11% and extending a tech rally that left the recent freakout over AI safety in the dust.

Even if inflation remains high and the Federal Reserve continues to raise borrowing costs in the months ahead, that may not be enough to damp the AI-crazed stock market in the short term, said Brad Conger, chief investment officer at Hirtle & Co.

"The only conclusion you can draw is that the equity market is looking through it," he added.

Forex:

The dollar could lose ground, as hopes for a resumption of U.S.-Iran negotiations could underpin appetite for risky assets. President Trump signaled an openness to meeting Iranian officials heading to New York for a gathering of the United Nations General Assembly.

Investors are closely watching Trump's address to world leaders at this week's U.N. meeting for any market-moving signals on the Iran and Ukraine-Russia conflicts, Commerzbank Research analysts said.

Bonds:

Chicago Fed President Austan Goolsbee said the path of future interest-rate increases depends on both the trajectory and composition of inflation. As supply shocks prove more frequent and persistent, simply looking through the effects won't work, Goolsbee said.

"Our policy response to persistent supply shocks may not need to be as large as it would be if the inflation were coming from demand overheating. But it won't be painless either. This is exactly the painful trade-off between employment and inflation that stagflationary shocks always impose on a central bank," Goolsbee said.

Energy:

Oil edged higher, with front-month Brent futures hovering above the psychologically important $100-a-barrel mark. Attention in oil markets will likely be centered around diplomatic developments, FXTM's Lukman Otunuga said.

Iran has warned that renewed escalation in the Middle East conflict would trigger a significant response, which could push crude prices higher, the head of market research said. However, any confirmation of direct talks between the U.S. and Iran at this week's U.N. meeting could pressure prices by raising expectations for Middle East supply, he added.

Metals:

Gold prices are supported by longer-term fundamentals, said Peter A. Grant of Zaner Metals. This is driven by persistent central bank buying, rising geopolitical risks and concerns over fiscal sustainability and currency debasement. The senior metals strategist said these structural drivers are also complemented by the seasonal period extending into February. Copper rose in Asian trading, as market sentiment has improved ahead of the coming meeting between Chinese and U.S. leaders, Baocheng Futures analysts said.

Refined copper inventories in China have hit a low for the year, and spot availability remains tight, they said. Copper prices could stay firm in the near term, although uncertainty over U.S. tariffs on copper and the outcome of the China-U.S. summit remain key risks. Prices of iron ore strengthened. Overall iron-ore shipments are on a seasonal upward trend, remaining at relatively high levels, Nanhua Futures analysts said. Steel mills are building up inventory ahead of the coming long holiday in China, they noted.

TODAY'S TOP HEADLINES

The Magnificent Seven Is Roaring Back, Fueled by Meta's Rally

The Magnificent Seven is back. You can thank Meta.

Investors piled into shares of Facebook's parent company on Monday after its new artificial intelligence agent jumped to the top of Apple's App Store, boosting shares 11% and extending a tech rally that left the recent freakout over AI safety in the dust.

Trump to Address World Leaders. What It Means for Oil Prices.

President Donald Trump will address world leaders Tuesday morning at the United Nations General Assembly annual meeting in New York, where investors will be listening for any market-moving news about the future of the Iran and Ukraine-Russia wars.

Roughly 120 heads of state and government are expected to attend the meeting, according to U.N. spokesperson Stéphane Dujarric. They include Ukrainian President Volodymyr Zelensky, Israeli Prime Minister Benjamin Netanyahu, Iranian President Masoud Pezeshkian, and Venezuela's interim president, Delcy Rodríguez.

Iran's President Gets Rare Opportunity to Make His Case to the World

When a small Iranian delegation, led by the country's president, travels to New York this week, its members will be free to attend the United Nations General Assembly-but not to go for a walk in Central Park or shop on Fifth Avenue without permission. Only a trip down the block from their Manhattan hotel to the U.N. building is allowed.

The U.S. has long imposed restrictions on Tehran's diplomats, but the circumstances of the Iranian delegation are particularly unusual this year as they visit an America their country is fighting in a nearly seven-month-old war.

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.

OpenAI Urges Washington to Lead Global Effort to Create AI-Safety Standards

OpenAI is asking the U.S. government to lead an effort with other countries to develop global safety and security standards for building cutting-edge artificial-intelligence systems.

In a proposal published Monday, the company suggested that countries worldwide should set common measures for evaluating forthcoming self-improving AI systems and establish secure channels to share emerging threats.

Write to singaporeeditors@dowjones.com

Expected Major Events for Tuesday 04:30/NED: Sep Consumer confidence survey

04:30/NED: Aug House Price Index

05:00/FIN: Aug Labour force survey, incl unemployment

06:00/UK: Aug Public sector finances

06:00/DEN: Sep Consumer expectations

07:00/SPN: Jul Trade Balance

07:00/SWI: 2Q Balance of Payments

08:00/POL: Aug Retail Sales

08:00/POL: Aug Agricultural prices

09:00/BEL: Sep Consumer Confidence Survey

10:00/IRL: Aug WPI

10:00/UK: Sep CBI Industrial Trends Survey

12:00/POL: Aug Broad money M3

12:00/HUN: Sep Hungarian interest rate decision

14:00/EU: Sep FCCI Flash Consumer Confidence Indicator

17:59/POR: Jul ICSG Copper Report

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