European stocks are seen opening broadly higher on Tuesday after U.S. stocks recovered from a major selloff to end notably higher overnight on hopes for a potential resolution to the U.S.-Israeli war on Iran.
U.S. stock futures traded lower as tensions prevail, with Israel launching waves of airstrikes in retaliation for a barrage of Hezbollah rockets and missiles.
Iran launched new barrages of missile and drones at Gulf Arab states hosting U.S. military bases and Israel as supporters of the Islamic Republic staged rallies to celebrate the appointment of a new hardline leader, Mojtaba Khamenei, son of former Supreme Leader Ali Khamenei.
Energy markets remain a central focus after the recent surge in crude prices fueled concerns about the outlook for inflation, interest rates and economic growth.
Brent crude prices last traded down over 6 percent at 92.64 a barrel, recovering some early losses after finance ministers from the G7 countries broadly agreed to delay the release of oil from their strategic reserves.
WTI crude futures were down nearly 7 percent at $88.34 a barrel after hitting a low of $84.45 earlier.
Asian markets were broadly higher, the dollar held an overnight decline and bond yields declined while gold traded 0.6 percent higher at $5,169 an ounce.
In economic releases, traders await a key batch of U.S. economic data later this week, including the January consumer price index report scheduled for release on Wednesday and the February personal consumption expenditures price index due on Thursday for additional clues on the Fed’s rate trajectory in the coming months.
Overnight, U.S. stocks recovered from a sharp early sell-off to end notably higher as oil prices whipsawed and President Trump said the war with Iran may not last that long.
Trump told CBS News that he thinks “the war is very complete, pretty much and they have nothing left in a military sense.” Trump also added that he’s thinking about taking over the Strait of Hormuz.
The tech-heavy Nasdaq Composite and the S&P 500 both slumped by as much as 1.5 percent to reach their worst intraday levels in over three months before reversing course to end higher by 1.4 percent and 0.8 percent, respectively.
The Dow tumbled by as much as 1.9 percent before finishing half a percent higher.
European stocks fell for a third day running on Monday as surging oil prices amid a deepening conflict in the Middle East threatened to stoke inflation and hobble economic growth.
The pan European Stoxx 600 dropped 0.6 percent. The German DAX shed 0.8 percent, France’s CAC 40 gave up 1 percent and the U.K.’s FTSE 100 slipped 0.3 percent.
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European Shares Seen Higher As Oil Prices Ease On Trump’s Comments
2026-03-10 05:36:45
