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HALF-TIME SENTIMENT SHIFT IN EUROPE

What had been a positive morning of trading for European stocks and bonds turned around suddenly after Reuters reported Iran's Supreme Leader has issued a directive that the country's near-weapons-grade uranium should not be sent abroad.

That hardens Tehran's stance on one of the main U.S. demands at peace talks and could further frustrate U.S. President Donald Trump and complicate talks on ending the U.S.-Israeli war on Iran.

Markets reacted in the usual way, oil rose, stocks and bond prices fell, and the dollar caught a bid.

Brent jumped to $106.5 a barrel LCOcv1 from close to $104 just before the report. Bond yields rose, led by rate-sensitive short-dated notes, and Germany's 10-year yield was last up 4 bps on the day at 2.69%.

None of that was good for stocks. Europe's broad STOXX 600 which had been trading in positive territory fell and was last down 0.4%. .STOXX Most sectors fell, apart from energy, as one would expect. .SXEP

(Alun John)

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