U.S. futures steady, oil slips 0.5% as Iran deal details awaited

Global markets stabilized Tuesday as investors awaited details of the U.S.-Iran peace deal that sent oil tumbling more than 4 percent and stocks to records a day earlier.

U.S. stock futures held near flat and oil edged lower Tuesday as traders weighed conflicting signals over the U.S.-Iran peace deal signed Monday.

"A number of questions remain which would impact the durability of the deal," said Mohit Kumar, economist at Jefferies. "There are different versions of the deal as stated by Trump and as reported by Iran."

Brent crude fell 0.5 percent to $82.75 a barrel in early European trade, extending Monday's 4.8 percent plunge, after Iran's foreign ministry said it would charge maritime service fees for transit through the Strait of Hormuz — contradicting Trump's assertion that oil would flow freely. WTI futures slipped 0.3 percent to $80.52. Goldman Sachs lowered its oil-price forecast, now expecting Brent to average $85 a barrel in the fourth quarter, down from a prior estimate of $90.

The deal's ambiguity leaves central banks meeting this week — including the Federal Reserve, Bank of Japan and Bank of England — navigating between easing inflation expectations from lower oil prices and the risk that negotiations over Iran's nuclear program could still collapse when the 60-day ceasefire expires.

European equities edged higher, with the Stoxx 600 adding 0.3 percent, led by industrials and banks. London's FTSE 100 rose 0.2 percent as energy-intensive defense companies gained, with BAE Systems and Rolls-Royce both climbing more than 2 percent. Germany's DAX advanced 0.2 percent as Rheinmetall jumped 2.7 percent, while France's CAC 40 gained 0.3 percent on strength in Safran and Thales.

Asian markets were mixed. Japan's Nikkei 225 ended 0.1 percent higher at 69,404.50 after briefly topping 70,000 for the first time, as the Bank of Japan raised its policy rate to a 31-year high of 1 percent. Hong Kong's Hang Seng Index dropped 1.7 percent, while China's Shanghai Composite Index closed 0.1 percent lower.

Yields Steady, Dollar Edges Higher

U.S. Treasury yields stabilized after Monday's declines, with the 10-year note trading at 4.471 percent. "Reaction so far on the rates market has been predictably muted," ING rates strategists said. The dollar edged higher, with the DXY index rising 0.1 percent to 99.742.

Gold held near Monday's gains, with New York futures slipping 0.3 percent to $4,339 a troy ounce, as lower oil prices eased inflation concerns. Bitcoin pulled back 0.1 percent to $66,412 after reaching a 12-day high of $67,241 on Monday.

Monday's rally had pushed the Dow Jones Industrial Average to a record close of 51,671.03, up 468.77 points or 0.92 percent. The S&P 500 surged 1.65 percent to 7,554.29, while the Nasdaq Composite jumped 3.07 percent to 26,683.94, driven by a 5.4 percent gain in semiconductor stocks and SpaceX's 19.6 percent surge following its blockbuster IPO.

This article is for informational purposes only and does not constitute investment advice.