U.S. stock futures were largely higher in early European trade, as positive market sentiment following lower-than-expected inflation data buoyed risk assets.

Oil prices remained elevated after a seven-hour round of American attacks on Iran, as the U.S. reimposed its blockade on Iranian ports. Brent crude oil rose above $86 a barrel.

Nasdaq futures were in the green, though software stocks failed to pare back significantly the last session's sharp losses in premarket trade. Asian stocks broadly rallied as investors caught up on Tuesday's U.S. CPI data.

The inflation print increased investor confidence that the Federal Reserve won't hike rates in July, pulling U.S. Treasurys back from eight-week highs and weakening the dollar. For the day ahead, Fed Chair Kevin Warsh will speak before the Senate Banking Committee, and investors watch for wholesale inflation data for June.

--In early European trading, Brent crude rose 1.9% to $86.36 a barrel, while WTI was up 1.7% to $80.72 a barrel. "Although Trump withdrew a proposal to impose transit fees on ships using Hormuz, the renewed conflict has pushed oil prices to their highest level in about a month, while broader regional tensions intensified following Houthi attacks on Saudi Arabia," said Soojin Kim from MUFG. The escalation has undermined confidence in shipping through the Strait of Hormuz despite U.S. assurances that the waterway remains open, reversing what had been a strong recovery in Persian Gulf shipping flows and threatening the rebound in exports from Gulf producers.

--U.S. futures were mostly in the green, with the S&P 500 up 0.2% and Nasdaq futures climbing 0.9%, though futures for the Dow Jones Industrial Average were flat. PayPal surged 12% in after-hours trade after a Reuters report said that Stripe and private equity group Advent International offered to buy the company. Morgan Stanley and BlackRock are among blue-chip companies set to report earnings later Wednesday.

--Asian stocks gained Wednesday as markets dialed back U.S. rate-hike expectations. South Korea's Kospi led the pack, rising 6.2%, with SK Hynix and Samsung shares finishing up 8.8% and 6.3%, respectively. Japan's Nikkei Stock Average ended 1.5% higher and Taiwan's Taiex advanced 2.0%. Hong Kong's Hang Seng gained 1.4%, though China's benchmark Shanghai Composite declined 0.3%.

--European indexes mostly slid as defense stocks and miners lost steam, even as the technology sector strengthened after ASML earnings. The Europe-wide Stoxx 600 edged 0.1% lower. London's FTSE 100 dropped 0.6% as miners fall. Germany's DAX slid 0.85%, weighed by a 3.5% loss for Rheinmetall and a 2.1% drop for software group SAP, which extended its falls from the last session. Luxury stocks jumped after Cartier-owner Richemont beat sales expectations. The CAC 40 slipped 0.3% as banks and defense groups weakened, even as Kering, Hermes and LVMH all gained around 3%. The Dutch AEX was up 0.9%, supported by a 6.5% jump for ASML after Europe's most valuable company raised its guidance. Spain's IBEX 35 and the Italian FTSE MIB fell 0.8% and 0.5%, respectively.

--The dollar held weaker after Tuesday's lower-than-forecast U.S. inflation data. Both headline and core inflation eased more than expected to 3.5% and 2.6%, respectively, in June. Fed Chair Kevin Warsh reaffirmed his commitment to price stability in a testimony to Congress Tuesday. Warsh's efforts to stamp his inflation-fighting credibility should be distinguished from the need to raise rates, Jefferies economist Mohit Kumar said in a note. "Unless we get a sustained rise in oil prices and spill over onto consumer prices, our view is that inflation would trend lower over the coming quarters." The DXY dollar index fell 0.2% to 100.761.

--U.S. Treasury yields rose in Asian trading but remained below Tuesday's high, after the June CPI print missed expectations, pushing yields lower by the end of the day. "If you were looking for runaway inflation in this report, you didn't get it," Harris Financial Group managing partner Jamie Cox said in a note. "It's pretty clear any recent rise in inflation was related to energy prices and wouldn't be long-lasting." Meanwhile, uncertainty caused by the renewed escalation between the U.S. and Iran remains a factor to watch. The two-year Treasury yield rose 1 basis point to 4.203%, while the 10-year Treasury yield was up 1.5 basis points at 4.599%.

--Eurozone government bond yields rose in opening trade, tracking the direction of U.S. Treasury yields. The 10-year Bund yield rose 3.3 basis points to 3.105%.

--Bitcoin rose 0.7% to $65,209.

--Gold slipped after climbing more than 2% in the previous session as investors balance a softer-than-expected U.S. inflation print and risks stemming from higher energy prices linked to the Iran war. In early trading, New York gold futures were down 1% at $4,030.50 a troy ounce.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

July 15, 2026 04:20 ET (08:20 GMT)

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