CNBC Daily Open: AI trade goes Meta after Muse launch

Hello, this is Leonie Kidd coming to you from London. Welcome to another edition of CNBC's Daily Open.

A new AI darling has emerged in the form of Meta's Muse.

Mark Zuckerberg's group has surged ahead in the AI race with a new model that has overtaken its peers in download popularity and helped drive the Mag Seven and Nasdaq back to record highs.

But with AI still a flashpoint for global leaders meeting stateside this week, will the gains be short-lived?

Read on for more.

Oil prices are rising in early trade on Tuesday, bouncing back after futures for international benchmark Brent crude briefly dipped below the $100 a barrel mark.

It comes with the UN General Assembly set to get underway in New York on Tuesday. President Donald Trump will hold meetings on the sidelines with Gulf leaders, while Iran's President Masoud Pezeshkian is expected to address the event.

President Trump is also due to hold bilateral meetings with U.K. Prime Minister Andy Burnham and Ukrainian President Volodymyr Zelenskyy.

Preparations are also underway for the much-anticipated state dinner between President Trump and Chinese President Xi Jinping. The U.S. has announced that several American tech and banking CEOs will join the event, but Beijing is yet to share the names of any Chinese companies joining the state visit.

While a trade truce between the two nations seems to be holding, AI and Iran could present flashpoints for the two leaders as they meet in Washington D.C.

In corporate news, shares in Novo are set to open after a volatile session on Monday. The stock sank at the start of the week as investors were skeptical about the Danish drug-maker's growth strategy and competition in the weight-loss market.

Squawk Box Europe will speak with the CEO following the capital markets day, catch that interview here.

— Leonie Kidd