MARKET WRAPS

Stocks:

European shares rose Friday as lower oil prices and a rebound in artificial-intelligence sentiment boosted markets.

Oil fell after President Trump said the U.S. wouldn't attack Iran before the midterms, citing "productive" talks with Tehran. Prices are likely to remain elevated in the short term despite the pullback as risks to Middle East shipping routes persist and U.S. offshore production remains disrupted, XTB MENA said.

Bond markets have also calmed as Eurozone government bond yields slid in early trade, catching up with earlier falls in Treasury yields following Thursday's well-received 30-year Treasury auction.

Meanwhile, shares of European semiconductor companies were mixed following a turbulent week where worries around debt and investment returns resurfaced.

Bernstein said semiconductor companies were set to voice confidence during the upcoming earnings season despite concerns over the sustainability of AI infrastructure spending.

U.S. Markets:

Stock futures were up Friday after a selloff in chip stocks and shares linked to the artificial-intelligence trade on Thursday.

Investors will next focus on the University of Michigan's preliminary consumer sentiment data due later Friday.

Forex:

The dollar fell modestly as oil prices ease after President Trump said the U.S. won't attack Iran before November's midterm elections.

Bonds:

Eurozone government bond yields slid in early trade, catching up with earlier falls in Treasury yields following Thursday's well-received 30-year Treasury auction.

Treasury yields reversed course and turned slightly higher on Friday, although long-dated yields remained comfortably below the 24-year highs reached earlier in the week, helped by falling oil prices

Energy:

In early European trading, Brent crude was down 0.8%, while WTI futures slipped 0.7%.

Brent's risk premium reached an estimated $22 a barrel in September, the second-highest monthly level on record, reflecting persistent fears of disruptions in the Middle East and demand for oil as a portfolio hedge, Goldman Sachs said.

Metals:

Gold gained more than 1% as a softer dollar and lower oil prices supported the metal, while market participants reassessed the inflation and interest-rate outlook.

Iron

Iron ore prices were lower, weighed by weak demand from steelmakers amid widespread losses across the steel industry, Baocheng Futures said.

EMEA HEADLINES

Porsche Deliveries Fell 16% in First Nine Months of Year

Porsche car deliveries fell 16% in the first nine months of the year, weighed by a tough Chinese market, the end of production of the combustion-engined 718 model line and strong demand for the all-electric Macan in the same period last year.

The German luxury sports-car maker said Friday that it delivered 178,532 cars, down from 212,509 in the prior year period.

Volkswagen Fined $1.3 Million by German Financial Watchdog Over Forecast Disclosure

The German financial supervisory authority fined Volkswagen 1.2 million euros ($1.3 million), saying the automaker failed to disclose potentially market-moving news in a proper and timely manner.

The regulator, known as BaFin, said Friday that Volkswagen's forecast for the 2023 financial year was significantly above market expectations, and that the German automaker should have issued an immediate, or ad hoc, announcement for financial markets regarding the business performance reflected in the forecast.

A Glimpse Inside Gaza Shows How Israel's Military Footprint Is Expanding

GAZA CITY-From an elevated perch on the eastern edge of Gaza City, a military official standing near bulldozers described the extent of Israel's entrenchment in the Palestinian enclave. He pointed out two of Israel's more than 30 bases in the territory, a third of which have been built since a ceasefire with Hamas took effect last year.

Israel says it is using the outposts to guard a new dividing line with Hamas-held territory as its military clears out tunnels on the Israeli-controlled side-a job it says is almost complete.

Iran and Houthis Try to Regain Upper Hand in Hormuz With Spate of New Attacks

DUBAI-Just last week, Iran appeared to have its back against the wall in its war with the U.S., its ports blockaded and its leverage over the Strait of Hormuz slipping. Now, Tehran is trying to regain the upper hand.

Iran and its Houthi allies in Yemen delivered a one-two punch against Persian Gulf oil producers in separate attacks on Wednesday night and Thursday morning that sent oil prices sharply higher and further shattered the sense of security in Saudi Arabia's capital city.

GLOBAL NEWS

Oil Prices Retreat After Trump Appears to Rule out Iran Strikes Before Midterms

Oil prices fell Friday after surging the previous day, as traders weighed President Trump's pledge not to attack Iran before the U.S. midterm elections against persistent shipping risks in the Persian Gulf and extensive offshore production shut-ins in the Gulf of Mexico.

December Brent crude futures fell 1.3% to $102.90 a barrel, while December West Texas Intermediate futures dropped 1.4% to $89.50 a barrel. Both benchmarks had gained 4.4% Thursday, with Brent rising as much as 5% earlier in the session to $105.23 a barrel and WTI also climbing 5% to $92.70 before paring gains.

Iran and Houthis Try to Regain Upper Hand in Hormuz With Spate of New Attacks

DUBAI-Just last week, Iran appeared to have its back against the wall in its war with the U.S., its ports blockaded and its leverage over the Strait of Hormuz slipping. Now, Tehran is trying to regain the upper hand.

Iran and its Houthi allies in Yemen delivered a one-two punch against Persian Gulf oil producers in separate attacks on Wednesday night and Thursday morning that sent oil prices sharply higher and further shattered the sense of security in Saudi Arabia's capital city.

U.S. Interest Rates Could Rise Over Next Six to Nine Months, Fed's Musalem Says

U.S. interest rates may need to climb for the next six to nine months to subdue inflation, Federal Reserve Bank of St. Louis President Alberto Musalem said, setting a tentative timeline for further monetary tightening.

Speaking at a Bloomberg conference on fixed income, Musalem said the Fed is focused on bringing inflation back to the central bank's 2% target in a timely manner, which he described as roughly 18 months.

Why the Battered Bond Market Is Finally Getting a Reprieve

The battered U.S. bond market is finally getting a dose of good news.

A confluence of market quirks blamed for deepening the recent selloff may be running out of steam, stirring hope that the rise in bond yields will also peter out.

Trump Says U.S. Won't Resume Strikes on Iran Before Midterms

The U.S. won't attack Iran before the November midterm elections, President Trump said Thursday, citing "productive" talks with Tehran.

"We are having productive discussions with the Islamic Republic of Iran," Trump said in a Truth Social post. "We will not be attacking Iran at any time prior to the Midterm Elections to be held in the United States on November 3rd. IRAN WILL NOT HAVE A NUCLEAR WEAPON!"

Iran and Houthis Try to Regain Upper Hand in Hormuz With Spate of New Attacks

DUBAI-Just last week, Iran appeared to have its back against the wall in its war with the U.S., its ports blockaded and its leverage over the Strait of Hormuz slipping. Now, Tehran is trying to regain the upper hand.

Iran and its Houthi allies in Yemen delivered a one-two punch against Persian Gulf oil producers in separate attacks on Wednesday night and Thursday morning that sent oil prices sharply higher and further shattered the sense of security in Saudi Arabia's capital city.

Vance Says U.S. Will Suspend Microsoft and Other Firms From Green Card Program

Vice President JD Vance said Thursday that the administration is suspending several tech firms, including Microsoft, from a program that allows H-1B visa holders to apply for green cards.

The action by Vance's antifraud task force targets Microsoft, Adobe and several tech recruiting companies over what officials have alleged are widespread abuses of the visa system. The announcement came the same day that President Trump recognized Microsoft's CEO and other tech leaders at an event in Washington.

In Spain, Grief and Politics Mix After Death of Evicted Woman

MADRID-Hours after the death of an elderly woman known as Maricarmen in Madrid, the political jockeying over her legacy had already begun.

María del Carmen Abascal, 87, died in a hospital two weeks after she was forcibly evicted from a flat where she had lived for decades. Televised scenes of her being carried away from the flat on a stretcher sparked nationwide protests against Spain's housing crisis.

Write to priscila.barrera@wsj.com