Global Stocks Climb as Oil Prices Drop and Treasury Yields Stay High

Global stock markets showed gains on Tuesday, building on Wall Street's near-record closes from the previous session. Investors are closely monitoring oil prices, Treasury yields, and economic signals from the US as they gauge the market outlook.

The FTSE 100, CAC 40, and DAX each rose by 0.8% in early European trading, while US stock futures also climbed. Asian markets saw mixed performance, with Japan's Nikkei 225 hitting a milestone above 70,000 for the first time since early July. Meanwhile, tech stocks displayed uneven movement, with Advantest rising 3.9% and SoftBank Group dropping 3.1%.

US stocks remained near record highs, supported by strong corporate earnings expectations ahead of the latest earnings season. The S&P 500 and Nasdaq Composite set new records on Monday, driven by gains in major technology companies like Nvidia and Broadcom. Oil prices fell more than 1%, with Brent crude dipping below $100 a barrel, offering some relief to investors despite lingering concerns over Middle East tensions.

Despite the decline in oil prices, US Treasury yields stayed near multi-decade highs, hovering around 5.27%. The yield had earlier peaked at 5.35%, its highest level since 2002. Investors are demanding higher returns due to inflation pressures, partly fueled by the Iran war. The US national debt surpassing $40 trillion adds to market concerns, though strong earnings optimism continues to support stock prices.