Stocks Rise Amid Iran Tensions, Oil Prices Rebound

Global markets remained uncertain on Tuesday as tensions between the US and Iran continued to escalate. Despite this, stocks in Europe rose alongside US futures, while oil prices rebounded from their previous session's low.

Brent futures increased by 1.4% to $84.95 a barrel after dropping 7% in the previous session to a three-week low. The STOXX 600 index rose 0.55%, with tech stocks leading the way at 1.7%. Nasdaq and S&P 500 futures also climbed, although only by 0.67% and 0.22% respectively.

Mohit Kumar, an economist at Jefferies, stated that 'we are adding risk to sectors which should be less impacted by higher rates', favoring tech and financials in the portfolio. He added that one underlying factor supporting their medium-term bullish view is the amount of cash in the system.

Meanwhile, Japan's Nikkei gained 0.32%, while the yen eased slightly but held on to most of its intervention-driven gains after last week's joint action by Tokyo and Washington to support the currency. Longer-dated US Treasury yields rose to a 19-year high last week following comments from Federal Reserve Chairman Kevin Warsh.