European equities closed higher on Aug 4 (Tuesday): Germany’s DAX up 177.52 points (0.68%) at 26,213.35; UK’s FTSE 100 up 23.54 points (0.22%) at 10,881.24; France’s CAC 40 up 52.81 points (0.61%) at 8,666.63; Euro Stoxx 50 up 60.85 points (0.95%) at 6,487.35; Spain’s IBEX 35 up 40.62 points (0.20%) at 20,023.22; Italy’s FTSE MIB up 674.28 points (1.28%) at 53,546.00.

Bessent told CNBC an agreement with Iran to reopen the Strait of Hormuz could be reached as soon as tomorrow, possibly Tuesday or Wednesday. He said Gulf security has been unstable in recent days but many vessels are still transiting the strait. He expects energy prices to ease and said falling prices could prompt a sizable rebound trade.

Castle Securities says that despite a cooling in retail speculation, the forces pushing US equities to record highs remain intact. The firm’s head of equity and equity derivatives strategy, Scott Rubner, says the market is shifting from a flow-driven regime toward one increasingly determined by earnings, corporate demand and the macro backdrop. Its data show retail withdrawal cut leveraged-ETF assets by 28% to $154.0 bln. Concurrently, lower financing costs for equity positions have eased pressure on Wall Street trading desks and reduced demand for leverage. A recent run of strong earnings continues to support the market: earnings are delivering upside surprises, valuations look more attractive, and share-buyback activity should accelerate as blackout periods end.