The Lebanon-Israel situation rattled market nerves; European stocks briefly turned positive, Brent crude struggled to rebound, and the US dollar fell from a one-year high.

The scheduled US-Iran talks on Friday were canceled, and the situation between Israel and Lebanon, which directly determines the direction of the negotiations, stirred market nerves.

According to CCTV News, Iranian Foreign Ministry spokesperson Baghaei confirmed on Friday the 19th via social media that the US-Iran talks originally set to be held in Switzerland have been postponed: "We are currently discussing plans to hold the talks in the coming days." The Iranian side did not disclose the reason for postponing the talks. Some media previously indicated the root cause was Iran's dissatisfaction with Israel's continued attacks on Lebanon.

The change in the US-Iran-Switzerland talks raised risk aversion sentiment. The pan-European stock index turned lower during the session, US stock futures fell; the US dollar index hit a new one-year high, rising above 101.00 for the first time in a year. The prospects for reopening shipping in the Strait of Hormuz became clouded, international crude turned higher, and Brent reclaimed the $80 mark. Both the US and China had stock and bond markets closed for holidays this Friday, reducing market liquidity and amplifying risk aversion.

By mid-European trading, good news emerged about eased hostilities between Israel and Lebanon's Hezbollah, with several media outlets including Xinhua citing US media reports, stating that Israel and Hezbollah agreed to a ceasefire starting at 4 p.m. local time on Friday. After the news broke, the pan-European Stoxx 600 index briefly turned positive, US stock futures narrowed losses, the previously climbing US dollar pulled further from its yearly high, hitting a daily low, and Brent resumed its decline.

Subsequently, US media reported that despite the ceasefire agreement between Israel and Hezbollah, both parties continued to carry out attacks. Xinhua, citing Lebanese media, stated that Israel launched airstrikes on southern Lebanon after agreeing to the ceasefire. Brent turned higher again, struggling to maintain its rebound.

After Israel's ceasefire news, US stock futures narrowed most losses, pan-European indices briefly turned higher

US stocks were closed on Friday, US stock futures opened lower. During the Asia session on Friday, Nasdaq 100 futures fell more than 1%, S&P 500 futures nearly 0.7%, and after Israel and Hezbollah reached a ceasefire agreement, most losses were gradually narrowed.

By futures close on Friday, S&P 500 futures fell 0.16%, Dow futures 0.18%, Nasdaq 100 futures 0.22%. Russell 2000 futures fell 0.20%.

The pan-European stock index ended two consecutive declines after five consecutive gains. Before the Israel ceasefire news, the Stoxx 600 index refreshed the daily low and fell 0.3%, and after the news, briefly turned higher, but ultimately closed down 0.24% at 635.61, falling for a second day after Wednesday's record close.

Driven by optimism over a possible US-Iran agreement to reopen the Strait of Hormuz, the Stoxx 600 index had continued to rise in the first three days this week, setting historical highs, though it declined in the final two days, but ended the week up 0.38%, marking a second consecutive weekly rise and fourth weekly gain out of the past five.

Most major European indices fell on Friday. German stocks, up six days straight, and French stocks, rebounded Thursday, both retreated; UK and Spanish stocks recorded two consecutive declines, while Italian stocks rose for seven consecutive days, setting record closes for six straight days.

After Israel's ceasefire news, Brent fell over 1%, gold and silver narrowed most losses; after Israel struck Hezbollah again, Brent rose over 1% at one point

International crude oil futures opened lower on Friday and struggled to rebound, turning lower several times; after Israel and Hezbollah reached a ceasefire, prices hit daily lows. As reports emerged of continued mutual attacks after the ceasefire, European stocks turned higher in late session; Brent fluctuated around the $80 level all day.

When European stocks hit their daily lows, Brent crude dropped to $78.77, down nearly 1.4% intraday; as European stocks turned higher in late session and hit daily highs, Brent rose to $80.81, up 1.2% intraday.

Spot gold turned lower at the start of the Asia session and maintained the decline, dropping below $4,122 to hit a daily low, nearly 2.1% intraday decline. After Israel and Hezbollah's ceasefire news, gold quickly narrowed losses, briefly climbing above $4,180, with intraday losses less than 0.7%, but later losses expanded, falling more than 1% by the European close.

Spot silver dropped nearly 3.7% to hit a daily low during the Asia session; after Israel's ceasefire news broke during the European session, losses narrowed, briefly surpassing $65.30 and approaching the day's Asian high, with intraday drop limited to about 0.5%.

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