Shares and bonds steady as oil eases on Trump's Iran comments

By Rae Wee and Harry Robertson

SINGAPORE/LONDON, May 19 (Reuters) - Global banal and enslaved markets steadied connected Tuesday aft U.S. President Donald Trump paused a planned onslaught connected Iran and said determination was a bully accidental of a atomic deal, sending lipid ‌prices lower.

Trump said connected Monday helium had halted a planned resumption of attacks against Iran to let clip for negotiations to ‌take spot connected a woody to extremity the war, aft Tehran sent a caller bid connection to Washington.

He subsequently said determination was a "very bully chance" the U.S. could scope an ​agreement with Iran to forestall Tehran from obtaining a atomic weapon.

Investors remained cautious, aft being rattled successful the erstwhile league by a play drone onslaught successful the United Arab Emirates.

European stocks roseate 0.7% successful aboriginal trading, further recovering crushed mislaid connected Friday erstwhile they dropped 1.5% arsenic enslaved marketplace jitters dispersed to equities.

Futures for the U.S. S&P 500 were small changed aft the scale flatlined connected Monday pursuing a 1.2% driblet connected Friday.

"We've seen a batch of ‌back and distant already," said Fabien Yip, a ⁠market expert astatine IG.

"Until we really spot existent enactment happening (in the Strait of Hormuz), whereby ships are passing done safely and we spot a worldly rebound successful the numbers of postulation going done successful the Strait, I deliberation ⁠the marketplace successful wide is shrugging disconnected the commentary from either side."

Brent crude futures fell 1.4% to $110.50 a tube connected the backmost of Trump's comments, portion U.S. crude was level astatine $108.70 per barrel. Both remained much than 50% supra their pre-war levels. [O/R]

MSCI's broadest scale of Asia-Pacific shares extracurricular Japan was down much than 1%, portion ​Japan's ​Nikkei eased 0.4%.

The all-important artificial quality commercialized volition beryllium tested by net from ​chipmaker Nvidia that are owed connected Wednesday, with expectations sky-high ‌for the world's astir invaluable company.

"Nvidia is the market's shorthand for everything AI and this market's gains person been driven successful ample portion by AI implicit the past fewer years," said Richard Reyle, main concern serviceman astatine Questar Capital Partners.

BOND SELLOFF ABATES

The autumn successful lipid prices helped stem a steep selloff successful planetary bonds connected Tuesday, though worries stay astir immoderate lasting inflationary daze from the Iran war.

Yields connected the benchmark 10-year U.S. Treasury enactment eased from a much than one-year precocious supra 4.63% to 4.597%.

Japanese and European authorities enslaved yields - which person besides changeable higher implicit the ‌last week - besides fell, with British yields dropping the most. Yields determination inversely to ​prices.