Key facts
- European shares edged higher as investors assessed a preliminary U.S.-Iran deal potentially reopening oil supplies.
- The Bank of Japan raised interest rates to a 31-year high to combat price pressures.
- Markets anticipate the Federal Reserve's interest rate decision, with a focus on Chair Kevin Warsh's commentary.
- SpaceX announced plans to acquire Anysphere for $60 billion to expand into the enterprise AI market.
- Olin agreed to acquire Huntsman in an all-stock deal valued at approximately $2.43 billion.
European shares saw a subdued rise as investors navigated a preliminary U.S.-Iran deal that could impact oil supplies and awaited the Federal Reserve's interest rate decision. The Bank of Japan, meanwhile, increased its rates to a 31-year high.
U.S. stocks were poised for a quiet opening. Technology and memory chip stocks showed gains, with SpaceX climbing on news of its planned acquisition of Anysphere for $60 billion. The Dow Jones Industrial Average had closed at a record high previously, buoyed by the U.S.-Iran agreement which eased inflation concerns. However, doubts persisted about the deal's timeline for reopening the Strait of Hormuz.
Investors are closely monitoring Federal Reserve Chair Kevin Warsh's commentary following the expected rate decision, as market volatility is historically observed during a new Fed chair's tenure. Traders are pricing in a 42% chance of a 25-basis-point rate hike in December.
In corporate news, Qualcomm is reportedly in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion. Olin announced its intent to acquire Huntsman in an all-stock deal valued at approximately $2.43 billion, though Huntsman shares fell. Robinhood confirmed plans to cut 10% of its workforce.