Global Shares Rally on Wall Street, Oil Prices Ease

What happened

Global equity markets advanced on Tuesday, August 4, 2026, following a U.S. stock rally amid easing oil prices. Regional investors were weighing the impact of a joint U.S.-Japan currency intervention from the previous week that had pushed the dollar down to 157.80 yen from 157.18 yen earlier in the session.

Major indices posted modest gains across Asia and Europe: - France CAC 40: +0.3% to 8,643.50 points - Germany DAX: +0.9% to 26,232.04 points
- Britain FTSE 100: +nearly 0.4% to 10,897.75 points - Japan Nikkei 225: +0.3% to 63,957.53 points - South Korea KOSPI: +1.6% to 6,358.95 points - Australia S&P/ASX 200: +1.4% to 9,145.80 points - Shanghai Composite: +0.3% to 3,822.28 points

U.S. futures also pointed higher ahead of the open: - Dow futures: +0.1% at 53,409.00 points - S&P 500 futures: +0.2% to 7,644.00 points

Meanwhile, oil prices showed signs of stabilization after a sharp decline. U.S. crude rose 15 cents to $80.49 per barrel, while Brent crude added 98 cents to $84.75 per barrel. This marked a notable shift from the previous day's more than 5% drop in oil prices following reports that former President Trump held off on Iran strikes. Brent crude had traded between $72 and $102 per barrel over the prior month, with the dollar previously at 160-yen levels before the intervention.

Why it matters

The coordinated market advance reflects investor relief on multiple fronts: easing geopolitical tensions in the Middle East reducing oil supply fears, and currency markets adjusting after the U.S.-Japan intervention that temporarily disrupted the dollar-yen pair. The modest but broad-based gains suggest risk appetite is returning as uncertainty recedes.

The oil price rebound from its recent decline indicates that market participants are recalibrating their expectations around geopolitical risk premiums. A more than 5% single-day drop in oil prices had previously pressured energy stocks and broader equities, so the reversal signals a reset in pricing for supply-side concerns.

Currency markets continue to be sensitive to central bank actions and geopolitical developments. The dollar's retreat from 160-yen levels to 157.80 yen demonstrates how policy interventions can move exchange rates within hours, with implications for multinational earnings and import costs across Asia.

What to watch

Investors will monitor whether the oil price rebound holds or if further geopolitical developments could trigger renewed volatility. The effectiveness of the U.S.-Japan currency intervention in sustaining dollar weakness will also be closely watched, as it affects trade balances and inflation expectations globally.

Energy sector performance will provide clues about whether the market has fully priced in reduced supply risks from Middle East tensions. Any fresh escalation in regional conflicts could quickly reverse the current calm.

Currency traders will watch for further central bank commentary that might signal additional intervention or policy shifts. The dollar-yen pair remains a key barometer of both monetary policy divergence and geopolitical risk sentiment.

By the numbers

Source snapshot

Sources: AP News — https://apnews.com/article/stocks-markets-dollar-yen-trump-iran-war-fbbe6128d618509e33d45a493c2615b1