Trump order opens red-dyed diesel to US drivers

6. Oct 2026

(AWP Alliance News) - European equities are called higher and Brent remained above USD100 per barrel as Houthi strikes continue.

Here is what you need to know before the European market open on Tuesday:

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MARKETS

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CAC 40: called up 25.4 points, 0.3%, at 7,859.50

DAX 40: called up 71.7 points, 0.3%, at 25,325.91

FTSE 100: called up 24.7 points, 0.2%, at 10,522.64

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Hang Seng: up 0.8% at 24,227.41

Nikkei 225: up 0.5% at 70,306.27

S&P/ASX 200: up 0.6% at 8,737.40

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DJIA: closed up 90.94 points, 0.2%, at 51,267.90

S&P 500: closed up 51.23 points, 0.7%, to 7,773.95

Nasdaq Composite: closed up 286.45 points, 1.1%, at a record 27,477.31

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US 10-year Treasury yield: 5.32% (5.33%)

US 30-year Treasury yield: 5.68% (5.68%)

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EUR: higher at USD1.1219 (USD1.1193)

GBP: unchanged at USD1.3218 (USD1.3218)

USD: higher at JPY158.06 (JPY157.99)

gold: lower at USD4,126.59 per ounce (USD4,137.43)

oil (Brent): lower at USD100.51 a barrel (USD102.32)

(changes since previous London equities close)

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ECONOMIC CALENDAR

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08:30 EDT Canada trade balance

10:00 EDT Canada ivey PMI

09:30 CEST eurozone construction PMI

11:00 CEST eurozone retail sales

08:45 CEST France budget balance

08:45 CEST France industrial production

09:30 CEST France construction PMI

08:00 CEST Germany factory orders

09:30 CEST Germany construction PMI

09:30 CEST Italy construction PMI

17:00 SAST South Africa SARB Monetary Policy Review

09:00 CEST Spain industrial production

09:00 CEST Switzerland unemployment

09:30 BST UK construction PMI

08:30 EDT US trade balance

08:55 EDT US Redbook index

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TOP ECONOMIC NEWS

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US President Donald Trump signed an executive order allowing drivers to use tax-exempt red-dyed diesel, a fuel normally reserved for farm machinery and other off-road equipment, on public roads. The move came as surging pump prices tied to the Iran war weighed on Trump's Republican Party weeks before the US midterm elections. Speaking at a rally in Nebraska, Trump told supporters the order would "officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason." The president admitted he was unfamiliar with the fuel, joking to the crowd: "I don't know what the hell it is, but whatever it is, it's supposed to be very good." Red-dyed diesel is essentially the same fuel as standard diesel, but it is exempt from highway fuel taxes.

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Iranian President Masoud Pezeshkian said negotiations with the US were "meaningless" and only resulted in renewed attacks, state media reported, with progress on ending the Middle East war stalled for months. "So far, they have attacked us three times after talks, and this shows that they are not seeking dialogue; rather, their goal is to overthrow the Islamic Republic of Iran," Pezeshkian was quoted as saying by the state news agency IRNA. "With an enemy that every day resorts to assassination, sanctions, pressure and threats, and that breaks its commitments, negotiations are meaningless." The Middle East war was started in late February by the US and Israel when they launched a wave of surprise attacks on Iran, even as Washington and Tehran were in the midst of negotiations on Iran's nuclear programme.

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The US announced the approval of a USD1 billion sale to the UAE of up to 10,000 advanced precision kill weapon system guidance sections for rockets. "The proposed sale will improve the United Arab Emirates' capability to meet current and future threats by developing and maintaining a strong and ready self-defence capability and improving interoperability with US forces," the US State Department said in a statement. It "will support the foreign policy and national security objectives of the US by improving the security of a major defence partner," the statement added. The advanced precision kill weapon system converts unguided rockets into precision munitions that can be employed for purposes including shooting down drones, thereby avoiding the use of costly missiles to shoot down comparatively cheap aircraft.

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Mexico has deployed 500 soldiers to its border with Texas after the US reported US personnel coming under gunfire, President Claudia Sheinbaum said. The troops were posted in Tamaulipas state in an area where the rival Northeast and Gulf drug cartels are fighting for control. The US classified both as foreign terrorist organisations in February 2025. In her routine morning press conference, Sheinbaum said the US reported that it took "shots from the Mexican border." But she added that the Trump administration provided no evidence. Mexico offered a troop deployment anyway along the Rio Grande, she said. US Ambassador Ronald Johnson wrote on X that US Coast Guard personnel "were fired upon." He said the newly deployed Mexican troops will communicate directly with US forces.

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EU trade chief Maros Sefcovic will travel to Beijing Thursday for two days of high-stakes talks aimed at staving off a trade war with China. The trip comes as the EU has toughened its stance towards Beijing to defend businesses against what it believes is unfair competition in sectors ranging from cars to industrial goods. Increasingly European leaders and observers warn of a "China Shock 2.0", used to describe Chinese firms' expansion into more advanced industries. Policymakers argue the trend could threaten many traditional EU sectors, echoing the impact of a wave of low-cost Chinese imports in the early 2000s.

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Top Nato commander Alexus Grynkewich will next week elaborate his "theory of victory" on how to defeat a Russian attack, a spokesman said, as fears grow over the threat from Moscow. "The Supreme Allied Commander Europe's theory of victory is simple: maintain Nato's advantage, which is consistent with and grounded upon the alliance's deterrence and defence plans," Colonel Martin O'Donnell, a spokesman for the US general, said. "But given the unsettled and complex global security environment, we need to set conditions now to deter aggression and, if necessary, win if attacked," O'Donnell said, noting the theory sets out a framework to do just that. He said that Grynkewich would speak about his ideas at a security conference in Warsaw next Monday. The move from the top military commander comes as Nato seeks to send a message to Moscow to halt what Western officials say is a "hybrid" campaign of sabotage and interference against Ukraine's backers. Fears have grown in recent months that the Kremlin is stepping up its actions after high-profile incidents including the discovery of an explosive-laden drone at a German airport. Nato traditionally closely guards its defence plans to counter any attack by Russia.

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Russian drones struck a grain ship in the Black Sea, Ukrainian President Volodymyr Zelensky said, after Romania reported a ship had caught fire and sunk near its coast with two crew members killed. "A horrific strike by two Russian drones on a civilian vessel in neutral waters carrying corn," Zelensky said in a post on X, adding that the ship was Turkish-owned and that Azerbaijani and Indian nationals were on board. Romanian authorities said two crew members had died and 11 were rescued after the 139-metre-long Royad Mammadov caught fire in the Black Sea, an increasing battlefield for drone attacks in the Russia-Ukraine war. The interior ministry said it sank about 30 nautical miles south of the fishing port of Sfantu Gheorghe.

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COMPANY CALENDAR

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Constellation Brands Inc - half year results

Croda International PLC - dividend payment date

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TOP COMPANY NEWS

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Leading artificial intelligence companies do not know how to keep AI systems from pursuing objectives their developers did not assign, whistleblower Jacob Coxon, a former OpenAI and Anthropic employee, warned. "Companies are being extremely reckless given the stakes," Coxon told local lawmakers at a hearing before the New York City Council. In early September, the British researcher published a statement on X explaining his decision to resign from Anthropic, saying AI developers sincerely believed the technology could "kill us all by the end of the decade." His testimony made headlines around the world, and several current and former employees of AI's major players have since voiced similar concerns. While AI could bring "tremendous benefits" to society, "on the current path, I think it is more likely than not that humanity loses control of these AIs and could end in human extinction," he said.

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The Iran-backed Houthis in Yemen said they had struck the international airport in the Saudi capital Riyadh, a Saudi Arabian Oil refinery and sites across the kingdom's south. The attacks, which included drones, ballistic and cruise missiles, "targeted King Khalid International Airport in Riyadh," said Houthi military spokesman Yahya Saree, adding that "the Aramco refinery in Rabigh" was also hit along with military sites and smaller airports in the south.

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Tokio Marine reported lower September sales at its Tokio Marine & Nichido insurance subsidiary as it posted a heavy slowdown in its Fire segment. The Tokyo-based insurance holding company said total TM&N sales fell 1.4% to JPY249.24 billion in September, approximately USD1.58 billion, against the same period a year ago. September sales were 24% higher than the previous month when it totalled to JPY201.55 billion. Auto sales increased 9.2% to JPY109.50 billion, Fire fell 20% to JPY65.08 billion, Personal Accidents climbed 5.2% to JPY12.26 billion, while Others picked up 2.5% to JPY33.58 billion. Marine sales surged 22.7% to JPY12.08 billion. Compulsory automobile liability insurance fell 1.5% to JPY16.74 billion. Cumulative total sales in 2026 so far were up 4.4% at JPY1.451 trillion from JPY1.390 trillion at the same point the previous year.

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Renault announced the appointment of Carine Damois as its next chief financial officer. The Paris-based automotive manufacturer said Damois will start in her new role on November 14. Damois succeeds Duncan Minto who Renault said has "decided to pursue new professional opportunities outside of the group" after being in the role since March 2025. Damois most recently served as deputy CFO at the Clermont-Ferrand, France-based tyre manufacturer Michelin since 2021. At Michelin Damois oversaw key finance functions across more than 100 countries.

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AstraZeneca announced the opening of its newest global strategic research and development centre, in Massachusetts. The Cambridge, England-based pharmaceuticals firm said the new facility will be home to nearly 2,000 researchers and scientists who will accelerate its oncology, cell therapy, chronic disease and rare disease pipeline. Chief Executive Pascal Soriot said the facility is one of the "key locations" where AstraZeneca will discover the next generation of scientific breakthroughs. As part of its broader US investment of USD50 billion, AstraZeneca is investing more than USD1 billion in Massachusetts, which will directly expand its workforce in the state by over 50% in the coming years. This new site adds to AstraZeneca's existing R&D presence in more than 40 countries across the globe, including its other US-based global strategic research centre in Gaithersburg, Maryland.

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Siemens said it has agreed a partnership with TD Synnex to drive AI adoption and move towards a software-based future. The Munich, Germany-based technology and engineering firm said the deal will broaden access to its technology to small and medium-sized businesses using TD Synnex's experience in scaling and delivering technology. TD Synnex is a Fremont, California-based technology distributor and aggregator. Siemens said the deal will create more opportunities for technology partners as physical AI emerges. TD Synnex's ecosystem includes technology and solution providers, systems integrators, hyperscalers and independent software firms across more than 100 countries.

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J Sainsbury held discussions on a potential merger with grocery peer Morrisons earlier this year, Sky News and the Financial Times reported. Sky said the "exploratory discussions" took place "some months ago," and that they are not believed to currently be active. However, "industry sources" believe that within the next three years, "another wave of supermarket industry consolidation is inevitable," Sky noted. The outlet also cited "retail insiders" as saying that private equity firm Clayton Dubilier & Rice, which owns Morrisons, would be open to a similar deal "with one of the chain's major competitors."

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By Harvey Dorset, Alliance News reporter

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