MARKET WRAPS

Stocks:

European shares were mixed Thursday while bonds strengthened further after the U.S. Treasury said it would spend more on buying back longer-dated bonds.

Investors are reading the unexpected intervention as an effort to ease concerns by signaling the Treasury's willingness to support under-fire debt.

The decision is leading to improved sentiment around global markets, Tickmill Group said. "The rally shows how quickly sentiment can recover when duration pressure eases, especially in AI-linked markets where valuation sensitivity to long-end yields is high."

Meanwhile, oil prices extended gains for a fifth consecutive day after President Trump said he would launch a major economic campaign against Iran, signaling further escalation and little hopes for an imminent deal.

"The U.S. has no talks planned with Iran, while the Strait of Hormuz situation remains tense, with limited traffic and ongoing disagreement around reopening conditions," Sucden Financial said. "This keeps an energy-risk premium in the market and limits how far investors can price out inflation risk, even as today's Treasury announcement gives risk assets some breathing space."

U.S. Markets:

Stock futures were higher Thursday as the bond markets continued to show calmer conditions.

Investors will also be keeping an eye on Walmart's second-quarter financial results, which are set to be released before the opening bell.

Forex:

The dollar fell to a three-month low against a basket of currencies as the Treasury's decision to increase buybacks of long-term bonds boosts risk sentiment, ING said.

Bonds:

Eurozone government bond yields edged lower, moving in line with Treasury yields, in the aftermath of the Treasury's decision to raise the volume of long-end government debt buybacks.

Treasury yields were steady after edging lower in early trade, extending Wednesday's falls seen in long-end yields.

Long-end Treasury yields are attractive in real and nominal terms, but low investor conviction could leave yields under sustained pressure in the near term, TD Securities said.

Deutsche Bank​ said the Treasury's unexpected buyback decision is a sign of increasing administration unease regarding the ongoing rise in long-end Treasury yields.

Energy:

In early European trading, Brent crude was up 1.6%, while WTI futures rose 1.5%.

Metals:

Gold prices held above $4,500 after Wednesday's rally and the release of the Fed's minutes.

Iron ore

Iron ore declined in early trading. Prices are under pressure as supply is likely to remain ample in 2H, Nanhua Futures said.

EMEA HEADLINES

Danone's $1.2 Billion Huel Deal Gets U.K. Competition Clearance

The U.K. antitrust watchdog cleared the proposed $1.2 billion acquisition of Huel by Danone.

The Competition and Markets Authority had launched an initial merger probe to examine whether the deal would lessen competition in the country, but said Thursday that based on information currently available, it wouldn't refer the merger to a more in-depth Phase 2 investigation.

JD Sports Shares Tumble After Profit Guidance Cut

JD Sports Fashion shares dropped after the sport and fashion retailer cut its full-year profit guidance as second-quarter sales fell due to pricing pressure and a weak U.S. performance.

Shares were down 12% at 82.40 pence during Thursday morning European trading, leading the FTSE 100 index fallers. They are currently down 2.3% over the year to date.

Swiss Watch Exports Stay Resilient in July Helped by U.S. Performance

Exports of Swiss watches rose in July, driven primarily by strong performance in the U.S.

Total exports of timepieces made in Switzerland increased by almost 9.6% compared with the same period last year to hit a value of more than 2.6 billion Swiss francs ($3.26 billion), according to the Federation of the Swiss Watch Industry.

Trump Threatens Iran With 'Economic D-Day'

WASHINGTON-President Trump vowed to unleash what he called "ECONOMIC D-DAY" on Iran as frustrations mount over lack of progress on reopening the Strait of Hormuz or reaching a deal to end the nearly six-month war.

Trump said on Wednesday evening he would launch a major economic campaign against Iran and any entity that does business with the regime. The president said it would be "the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!" Trump didn't say what specifically the U.S. will do in addition to the heavy sanctions that are already on Tehran.

GLOBAL NEWS

Trump Threatens Iran With 'Economic D-Day'

WASHINGTON-President Trump vowed to unleash what he called "ECONOMIC D-DAY" on Iran as frustrations mount over lack of progress on reopening the Strait of Hormuz or reaching a deal to end the nearly six-month war.

Trump said on Wednesday evening he would launch a major economic campaign against Iran and any entity that does business with the regime. The president said it would be "the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!" Trump didn't say what specifically the U.S. will do in addition to the heavy sanctions that are already on Tehran.

Red-Hot Rivals: How Chinese Tech IPOs Are Outshining America's Biggest Debuts

Chinese IPOs are popping-and they aren't dropping.

Chinese humanoid robot company Unitree Robotics on Wednesday soared more than 460% on its first day of trading on Shanghai's STAR Market. That follows a nearly 500% surge for memory chip maker ChangXin Memory Technologies, or CXMT, on the STAR Market, which is sort of like China's Nasdaq, in late July.

Bessent Leans Into His Role as America's Bond Trader in Chief

Treasury Secretary Scott Bessent has shown he'll do unconventional things to get markets moving his way. His latest maneuver is his most radical yet.

Facing an uncomfortable rise in longer-term interest rates, Bessent took action early Wednesday when the agency he leads announced that it would significantly step up purchases of government bonds as part of its existing buyback program. Markets quickly responded in a way they haven't to Bessent's previous moves, with stocks rising and Treasury yields falling sharply.

Trump Threatens Iran With 'Economic D-Day'

WASHINGTON-President Trump vowed to unleash what he called "ECONOMIC D-DAY" on Iran as frustrations mount over lack of progress on reopening the Strait of Hormuz or reaching a deal to end the nearly six-month war.

Trump said on Wednesday evening he would launch a major economic campaign against Iran and any entity that does business with the regime. The president said it would be "the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!" Trump didn't say what specifically the U.S. will do in addition to the heavy sanctions that are already on Tehran.

Taiwan Floats Record Defense Budget, Sending Message to U.S. and China

TAIPEI-Taiwan's government proposed its highest level of military spending ever at over $35 billion, in a $123 billion budget for 2027 unveiled on Thursday.

New Drone Unit to Be Phased Out as Hegseth's Army Pick Makes His Mark

WASHINGTON-The Army took a major step to prepare for wars of the future in January when it established a new battalion in Europe to master the art of fighting with drones and ground robots.

The idea was to learn the lessons of the conflict in Ukraine that has been raging on the North Atlantic Treaty Organization's doorstep and develop cutting-edge military systems and tactics to counter the Russian threat.

Democrats Press Kevin Warsh to Disclose Calls With Trump

Four Senate Democrats asked Kevin Warsh in a letter Wednesday to publicly disclose his conversations with President Trump, after The Wall Street Journal reported this month that the two have spoken repeatedly since he became Federal Reserve chairman, and Warsh's appointment calendars showed no such calls.

The letter, spearheaded by Sen. Chris Van Hollen (D., Md.) and signed by three other lawmakers on the committee that oversees the central bank, said undisclosed contacts between the president and Fed chairman risk creating "a perception that the White House is shaping monetary policy."

Write to priscila.barrera@wsj.com