UK and European equities strengthened during Tuesday’s session as easing sovereign bond yields and a retreat in oil prices provided some relief after recent volatility in fixed-income markets. London shares advanced alongside the broader European market, while German and French equities also recovered. Investors remained attentive to fiscal pressures across Europe, particularly in France, although stabilisation in government bond markets helped restore risk appetite

US equities opened firmly, with technology and artificial-intelligence-related shares continuing to lead sentiment. The Nasdaq extended its record-setting performance, while the broader market approached previous highs as falling Treasury yields and lower crude prices reduced some of the pressure on growth valuations. Nvidia, Microsoft and other large technology companies remained influential, while investors increasingly turned their attention towards the forthcoming corporate earnings season.

Asia-Pacific markets were generally positive following the strong technology-led performance on Wall Street. Japanese equities advanced, supported by semiconductor and artificial-intelligence-related companies, while Hong Kong also moved higher. Elevated global bond yields continued to temper enthusiasm, however, and South Korean equities weakened as semiconductor shares came under pressure. Mainland Chinese markets remained closed for the Golden Week holiday.

Oil prices moved lower as recovering Middle Eastern crude exports eased immediate concerns surrounding global supply. Improved shipment volumes and expectations of emergency reserve releases reduced some of the geopolitical premium that had recently pushed crude sharply higher. Nevertheless, continuing security risks around important maritime routes mean the market remains sensitive to developments in the Middle East, leaving volatility elevated despite the improvement in physical supply.

Gold remained supported by demand for defensive assets amid continuing geopolitical and fiscal uncertainty, although elevated bond yields and a firm US dollar limited the strength of the move. Expectations that the Federal Reserve may refrain from tightening monetary policy further in the near term provided some support, while investors continued to view developments in sovereign debt markets and the Middle East as potential catalysts for renewed safe-haven demand.

BT remained in focus following its acquisition of TalkTalk through a pre pack administration. The transaction adds a substantial broadband customer base to BT but has attracted scrutiny because of its implications for creditors and competition within the UK telecommunications sector. The deal is subject to regulatory and government review, while rival operators have raised concerns about the competitive consequences given TalkTalk’s existing reliance on BT owned Openreach infrastructure.