Live Markets: Heightened volatility, headline risk

Pershing Square Holdings

07/04/2026 11:44

Adds new blog entry

STOXX 600 up 0.3%

Trump's Iran deadline nears

UMG jumps after Pershing Square bid

Wall Street futures edge higher

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HEIGHTENED VOLATILITY, HEADLINE RISK

Equity markets are choppy in volatile trading late in the European morning, with expectations that there could be de-escalation in Iran fading despite some earlier optimism.

Some traders were pointing to an Axios report that cited a senior U.S. administration official saying Trump would hold off from his threats to destroy Iranian infrastructure if he believes a deal is coming together.

Iran had earlier rejected the Pakistan-mediated, temporary ceasefire, a senior Iranian source told Reuters.

And in what could be a sign of progress, the Iranian ambassador to Pakistan said "positive and productive endeavours" by Islamabad to mediate an end to the war were "approaching a critical, sensitive stage."

That had given European stocks a boost after a negative start, although they are off highs, as traders flag a report in Iranian media that explosions have been heard on the country's main oil export hub of Kharg Island.

Iran's Revolutionary Guards later warned they would target U.S. and partners' infrastructure, threatening to disrupt regional oil and gas supplies for years.

The pan-continental STOXX 600 .STOXX and the Euro STOXX 50 .STOXX50E are up by about 0.2%. Both started the day in the red and were higher by almost 1% at one stage.

Major bourses in London .FTSE, Frankfurt .GDAXI and Paris .FCHI are up 0.1% to 0.8%.

Markets will likely be on edge throughout the day, and with Trump likely to wake up soon, more market-moving headlines could be on the horizon.

(Samuel Indyk)

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