This content was published on
June 22, 2026 - 09:32
4 minutes
(Bloomberg) — Stocks in the US and Europe struggled for direction, finding little support from lower oil prices following signs of diplomatic headway between the US and Iran.The S&P 500 was set for a quiet open after a long weekend, with futures trading little changed. Brent crude slid 1.5% toward $79 a barrel as negotiators for Tehran and Washington agreed on a roadmap for reaching a final deal. The dollar edged higher. Treasuries fell across the curve following Friday’s holiday.In the UK, the pound neared its weakest level for 2026 ahead of an expected announcement that UK Prime Minister Keir Starmer will step down. Gilts halted a two-day slide, with the 10-year yield dropping one basis point to 4.83%.Oil traders took comfort from signs of progress in Middle East peace talks even as President Donald Trump threatened to strike Iran if Hezbollah continues to attack Israel. The sides established a communication line to avoid incidents and miscalculations, with the aim of ensuring safe passage for commercial vessels through the Strait of Hormuz.“In the very very short term, yes, there would be positive sentiment to drive the markets still higher, or oil prices lower, but do expect some more volatility to come back to haunt the markets over the next 60 days,” Cusson Leung, chief investment officer for KGI Asia, said on Bloomberg Television.In the UK, allies of Keir Starmer expect him to set out a timetable for his departure imminently, putting Britain on course for its seventh premier in a decade and paving the way for Andy Burnham to replace him.Starmer is expected to concede power in a statement as soon as Monday, people familiar with the matter said, although they cautioned that was not certain. The prime minister spent the last three days considering his position and whether he should continue to fight attempts by Greater Manchester Mayor Andy Burnham, who was elected to Parliament last week, to depose him.The question for investors is the impact on the UK’s finances if Burnham were to become prime minister. He has so far offered little clarity on the potential policies he’d pursue, making it difficult to gauge the implications for future borrowing.“A loosening in fiscal rules would likely be poorly received by the UK bond market and weigh on GBP/USD,” Commonwealth Bank of Australia strategists including Kristina Clifton wrote in a note to clients. “The next level of support for GBP/USD is a long way away at 1.3010, its one-year low.”Some of the main moves in markets:StocksThe Stoxx Europe 600 was little changed as of 8:27 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.8% The MSCI Emerging Markets Index rose 0.9% CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.1% to $1.1454 The Japanese yen fell 0.3% to 161.73 per dollar The offshore yuan was little changed at 6.7801 per dollar The British pound fell 0.2% to $1.3203 CryptocurrenciesBitcoin rose 0.7% to $64,209.35 Ether rose 1.6% to $1,746.51 BondsThe yield on 10-year Treasuries advanced three basis points to 4.48% Germany’s 10-year yield declined one basis point to 2.97% Britain’s 10-year yield declined one basis point to 4.83% CommoditiesBrent crude fell 1.6% to $79.25 a barrel Spot gold rose 1% to $4,198 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
