Stocks rise despite Iran tensions, oil up, yen eases

By Stefano Rebaudo

Aug 4 (Reuters) - European stocks climbed alongside U.S. futures connected Tuesday, though a rebound successful lipid prices underscored marketplace scepticism that the U.S.-Iran warfare would beryllium resolved rapidly done diplomacy.

Meanwhile the yen eased slightly, but held ‌on to astir of its intervention-driven gains aft past week's associated enactment by Tokyo and Washington to enactment the currency.

Conflicting ‌signals from the U.S. and Iran boosted uncertainty, with the latest onslaught connected shipping successful the Strait of Hormuz highlighting risks to planetary vigor flows.

Brent futures roseate 1.4% to $84.95 ​a tube aft dropping 7% successful the erstwhile league to a three-week low.

Europe's STOXX 600 .STOXX was up 0.55%, with tech stocks rising 1.7%.

Nasdaq futures climbed 0.67% and S&P 500 futures accrued 0.22%. The S&P 500 scale <.SPX> jumped 1.48% connected Monday hitting 7,610.04, not acold from its all-time precocious of 7,620.90, portion the Dow Industrials reached a closing grounds high.

MSCI's main satellite stocks scale <.MIWD00000PUS> roseate 0.05%. Japan's Nikkei <.N225> gained 0.32%.

"We are adding hazard ‌to sectors which should beryllium little impacted by ⁠higher rates. Tech and financials would beryllium our favourite sectors to adhd backmost hazard successful the portfolio," Mohit Kumar, an economist astatine Jefferies, said, recalling the caller rally successful enslaved yields.

"One underlying origin that continues to ⁠support our mean word bullish presumption is the magnitude of currency successful the system," helium added.

Longer-dated U.S. Treasury yields roseate to a 19-year precocious past week aft comments from U.S. Federal Reserve Chairman Kevin Warsh raised concerns the Fed whitethorn not enactment aggressively to caput disconnected inflation.

Market participants judge Warsh ​does ​not privation to hike, and the incoming information could supply him capable screen ​to enactment put. The archetypal circular of U.S. jobs ‌data is owed aboriginal connected Tuesday.

With astir two-thirds of S&P 500 companies reporting for the 2nd quarter, 84% person beaten net estimates, according to LSEG information and marketplace participants .

"The AI capex roar remains intact," Eastspring Investments analysts, including Chief Investment Officer Vis Nayar, wrote successful a note.

However, concerns linger elsewhere for Europe, with immoderate economists informing that its system faces a much challenging outlook than different regions arsenic drought hampers Rhine shipping and state inventories stay nether pressure.

YEN RALLY STALLS

Against the yen, the dollar was up 0.4% astatine 157.80 yen, rebuilding spot ‌after coordinated involution by U.S. and Japanese authorities to prop up the yen ​last week.