European equities finished mixed as traders in London and across the region headed toward the close, but Germany's DAX and Spain's Ibex both ended at new record highs. The DAX gained 0.26%, while the Ibex added 0.20%, extending the recent stretch of record-setting moves across European markets. The latest gains come as stocks continue to benefit from strong corporate earnings and optimism tied to U.S.-Iran negotiations, with the European Central Bank's easing cycle also underpinning sentiment by reducing borrowing costs for eurozone companies.

The closing levels were:

• German DAX: +0.26% at 26,391.43 — record close
• France CAC 40: -0.13% at 8,714.95
• UK FTSE 100: -0.17% at 10,844.20
• Spain's Ibex: +0.20% at 20,213.61 — record close
• Italy's FTSE MIB: +0.08% at 53,706.20

The relatively muted moves reflected continued investor attention to developments in the Middle East. Pakistan's Defense Minister Khawaja Asif said today that the U.S. and Iran are close to "some sort of an arrangement," adding that recent signals suggest events are moving toward a peace agreement. Qatar has also said negotiations over the Strait of Hormuz have reached an advanced stage. The strait is a critical chokepoint through which roughly a fifth of global oil consumption transits daily, making any disruption a direct lever on energy prices and inflation expectations. Even so, shipping disruptions and disagreements over the terms of any agreement continue to leave uncertainty elevated.

In the European debt market, benchmark 10-year yields moved lower across the board:

• Germany: 3.158%, -2.6 basis points
• France: 3.977%, -1.1 basis points
• UK: 4.965%, -3.5 basis points
• Spain: 3.599%, -2.7 basis points
• Italy: 3.952%, -2.7 basis points

U.S. stocks trade mixed

As European traders wrap up their session, major U.S. equity indices are also trading mixed. The Russell 2000 is outperforming, while the Nasdaq is the weakest of the major benchmarks.

• Dow Industrial Average: -30.02 points or -0.06% at 53,951.38
• S&P 500: -6.58 points or -0.08% at 7,746.54
• NASDAQ Composite: -87.89 points or -0.33% at 26,517.46
• Russell 2000: +13.29 points or +0.44% at 3,030.69

In the U.S. bond market, yields are lower across the curve and near the day's lows. They were higher at the start of the U.S. session. Following the weaker U.S. jobs report, markets are pricing a closer to 50-50 chance of a hike in September. Tomorrow's U.S. CPI release will be an important data point for how that view shifts, at least in the short term:

• 2-year: 4.226%, -1.3 basis points
• 5-year: 4.391%, -1.4 basis points
• 10-year: 4.686%, -1.2 basis points
• 30-year: 5.235%, -0.8 basis points

Oil remains higher

Crude oil is still trading higher despite the more optimistic comments about a possible U.S.-Iran agreement. Uncertainty around the Strait of Hormuz remains a key driver, leaving oil particularly sensitive to headlines. With roughly 20 million barrels per day flowing through the waterway, even temporary disruption scenarios carry outsized implications for freight rates, insurance premiums, and downstream fuel costs across Europe and Asia.

• WTI crude oil: $83.10, +$0.81 or +0.96%. The high price reached $84.61. The low price was at $81.27.
• Gold: $4,379.30, -$11.35 or -0.26%
• Silver: $64.846, -$0.835 or -1.27%
• Bitcoin: $63,567, -$559 or -0.88%

U.S. existing home sales edge lower

U.S. existing home sales were slightly better than expected in July, but the broader housing market remains sluggish as elevated mortgage rates continue to weigh on affordability and turnover.

• Existing home sales: 4.06 million annualized vs. 4.05 million expected
• Prior: revised higher to 4.13 million from 4.09 million
• Monthly change: -1.7%, following a revised -1.4% decline in June
• Median home price: $434,100
• Prices: +2.0% year-over-year
• Inventory: 4.6 months of supply, unchanged from June

July sales essentially matched expectations but declined for a second straight month after the stronger activity seen in the spring. High mortgage rates remain the main headwind, limiting affordability and keeping many existing homeowners reluctant to move. Inventory has improved compared with the tighter conditions of recent years, but at 4.6 months of supply it remains below the roughly six-month level the National Association of Realtors typically associates with a balanced market. Prices continue to rise, although the relatively modest 2.0% annual increase suggests affordability is gradually improving when adjusted for income growth and inflation.

Overall, the tone is cautious as European trading winds down. European equities finished mixed, bond yields moved lower on both sides of the Atlantic, and U.S. equities are struggling for direction. Oil remains the market to watch as traders react to each new headline on U.S.-Iran negotiations and the possible reopening of the Strait of Hormuz.