European stocks slip, oil climbs on Middle East escalation fears

European stock benchmarks ended the session mostly in negative territory as trading wound down. Losses were contained in Germany, France and the UK, but Spain saw a steeper drop. Italy’s FTSE MIB managed a small advance, breaking from the broader pattern.

• Germany’s DAX closed at 25,259.91, losing 17.78 points, or 0.07%.

• France’s CAC 40 settled at 7,827.64, a decline of 5.25 points (0.07%).

• The UK’s FTSE 100 ended at 10,650.34, down 5.94 points, or 0.06%.

• Spain’s IBEX 35 finished at 19,210.70, falling 75.10 points, representing a 0.39% loss.

• Italy’s FTSE MIB rose 22.18 points to 50,057.17, a gain of 0.04%.

Government bond yields across Europe showed a varied picture.

Benchmark 10-year borrowing costs fell across most major eurozone economies, but rose in the UK.

• Germany’s 10-year yield dropped 0.5 basis points to 3.463%.

• France’s yield declined 5.5 basis points, reaching 4.839%.

• The UK’s gilt yield added 0.8 basis points, ending at 5.451%.

• Spain’s yield edged down 1.6 basis points to 4.086%.

• Italy’s yield decreased 2.6 basis points, closing at 4.563%.

President Trump’s remarks on the Middle East kept attention on the potential for further escalation.

Trump’s statements heightened scrutiny on Iran and the Houthi group amid rising regional tensions. Key points from his remarks:

• Regarding the Houthis, Trump stated they are “behaving very badly.”

• On the election timeline, Trump said that someone should explain to the Houthis that he is not running in the elections and has already won. He also said he would be there after the elections and would “never forget.”

• Concerning Iran, Trump said he would decide on a course of action very soon, but did not detail what that might be.

• In a separate post on Truth Social, Trump praised the US Navy blockade against Iran.

• He mentioned he had spoken with the Saudi Crown Prince.

• When asked whether he would request Turkish participation in the response in Yemen, Trump replied, “I might.”

These remarks leave market participants awaiting the next move. A decision regarding Iran and any expansion of actions against the Houthis are crucial events to monitor. Another uncertainty is whether Trump will act before the election or delay until afterward.

In the data provided, oil prices were up:

• WTI front-month futures traded at $93.90, gaining $0.16, or 0.17%.

US existing-home sales came in slightly above expectations, though the market still shows weakness.

Existing-home sales climbed to a seasonally adjusted annual rate of 3.99 million in September, surpassing the 3.95 million forecast. Month over month, sales rose 1.5%.

Regional results were varied. Sales advanced in the South and West, were unchanged in the Midwest, and fell in the Northeast. On a year-over-year basis, all four regions posted declines.

Even with the monthly gain, NAR Chief Economist Lawrence Yun noted that August and September were the two slowest sales months of the year. Elevated mortgage rates in recent weeks are making qualification more difficult for buyers.

A larger inventory and extended time on market are strengthening buyers’ bargaining position. Sellers may therefore need to set realistic prices, possibly offering discounts or incentives, to close a sale.

US equity markets were in the red, while Treasury yields showed a mixed picture.

At about 12:30 PM ET, major US stock benchmarks were losing ground:

• The Dow Jones Industrial Average stood at 51,681.18, falling 175.00 points.

• The S&P 500 was at 7,798.99, a drop of 8.25 points, or 0.11%.

• The Nasdaq Composite traded at 27,211.89, down 34.01 points (0.12%).

• The Russell 2000 index was at 2,778.35, losing 16.13 points, or 0.58%.

• The Nasdaq 100 fell 120.95 points to 30,543.75, a decline of 0.39%.

US Treasury yields diverged between the short and long maturities:

• The 2-year yield rose 2.12 basis points to 4.812%.

• The 5-year yield eased 0.17 basis points to 5.019%.

• The 10-year yield fell 1.87 basis points to 5.225%.

• The 30-year yield dropped 2.39 basis points to 5.575%.

In other markets, gold and silver declined, while bitcoin advanced.

• Spot gold stood at $4,156.78, a loss of 0.36%.

• Silver was at $59.253, down 1.73%.

• Bitcoin reached $83,427, gaining $1,681, or 2.06%.