World stocks gain, oil slips as US sanctions Iran

Global shares were mostly higher on Tuesday after US Treasury Secretary Scott Bessent announced fresh sanctions against Iran and warned that countries still doing business with Tehran would face retaliation. Oil prices fell back on the news, while European and Asian markets shook off a mixed session on Wall Street.

Markets rise across Europe and Asia

Germany's DAX gained 0.5% to 26,240.76, the CAC 40 in Paris added 0.3% to 8,480.52, and Britain's FTSE 100 edged 0.1% higher to 10,869.93. Futures for the S&P 500 rose 0.3% while Dow Jones futures added 0.2%.

In Asia, Tokyo's Nikkei 225 gained 0.5% to 65,856.43, helped by a 2.3% jump in SoftBank Group. South Korea's Kospi reversed early losses to gain 0.7% to 6,742.74 as traders bought tech shares. Hong Kong's Hang Seng was nearly unchanged at 25,511.10, while the Shanghai Composite picked up 0.2% to 3,889.44. Australia's S&P/ASX 200 rose 0.7% to 9,164.60, Taiwan's Taiex jumped 0.9%, and India's Sensex lost 0.2%.

Tech selloff returns on AI worries

On Monday, the S&P 500 slipped 0.3%, the Dow industrials added 0.3%, and the Nasdaq composite fell 0.8%. Tech stocks led the decline on worries that the frenzy around artificial intelligence has pushed prices too high and that demand for AI chips could falter if AI profits fail to show up.

Chip giant Nvidia lost 2.9%. It will deliver its quarterly earnings report on Wednesday, and that could dictate the next big move for AI-related stocks. Micron Technology lost 5.8% and Broadcom fell 2.6%.

Treasury yields ease, giving markets some relief

The yield on the 10-year Treasury eased to 4.69% from 4.74% late Friday, returning to last week's level before the US Treasury Department announced a surprise move to increase planned buybacks of Treasurys. Longer-term yields had climbed through the summer on worries about high inflation, huge government debts, and other factors. High yields raise borrowing costs for everyone, and have already pushed up mortgage rates and hurt the housing industry.

Stephen Innes of SPI Asset Management said: "The latest discussion about using Treasury General Account cash to help finance purchases of longer-dated bonds gave the market something to chew on Monday, and it initially liked the taste. Long yields fell, and the curve flattened."

For Nigeria, the slip in oil prices is a double-edged signal. Lower crude prices could ease pressure on fuel import costs, but they also reduce dollar earnings from oil sales. With Iran sanctions raising supply uncertainty, oil markets may stay volatile, and that will keep pressure on the naira and the country's external reserves.