Market UpdatesJul 15, 20262 Min
Global market wrap: Asian stocks rally as US inflation softens; Brent crude rises above $85/barrel
We are back with quick updates on major developments around stock markets, commodities and companies across the world.
Asian markets rallied on Wednesday as softer inflation data in the US raised hopes that the Federal Reserve may delay its rate hike decision.
The US consumer price index fell 0.4% in June from the prior month, bringing the annual inflation rate to 3.5%.
Quarterly earnings also boosted sentiment in the markets, with investment banks like JPMorgan Chase, Bank of America and Citigroup topping analyst expectations on Tuesday.
South Korea’s benchmark Kospi zoomed 8.1% on Wednesday to 7,415. Japan’s Nikkei 225 also jumped 1.3% to 68,636.
Hong Kong’s Hang Seng Index gained 1.5% to 24,696, while China’s Shanghai Composite index was trading flat at 3,964, down 0.08%, after the country posted its slowest economic growth since 2022, missing market expectations.
Australia’s S&P/ASX 200 rose 0.3% to 8,836 on Wednesday, while Singapore’s Straits Times was trading higher by 1% to 5,552.
US stock futures gained only marginally on Wednesday as investors were cautious amid escalating Middle East tensions. S&P 500 futures rose 0.2%, Nasdaq 100 futures jumped 0.7%, while futures tied to the Dow inched up 0.1%.
In the regular trading session on Tuesday, the S&P 500 rose 0.38%, while the Nasdaq 100 gained 0.9%. The Dow Jones Industrial Average closed flat, up 0.02%.
Oil prices were trading higher on Wednesday after new airstrikes on Iran by the US military. The US crude oil futures for July delivery rose 0.6% to $79.84 per barrel by 0008 ET, while Brent futures for August delivery gained 0.9% to $85.53 per barrel.
Gold prices fell on Wednesday as rising oil prices fuelled uncertainty over inflation outlook. Spot gold fell 0.5% on Wednesday to $4,033 per ounce by 0408 GMT, while US gold futures for August delivery dropped 0.7% to $4,040 per ounce.
Here’s a look at some major developments across global markets:
SK Hynix shares bounce back 11%
Shares of South Korean memory chipmaker SK Hynix bounced back 11% in Seoul after a tough start to the week when the stock saw its worst single-day decline on Monday.
The jump in share price was helped by a broad rally in other Asian technology shares and US semiconductor stocks.
Earnings of Wall Street investment banks surge in Q2
Investment banks on Wall Street reported solid earnings for the second quarter on the back of strong fees for advising on mergers and acquisitions and surging trading revenue.
Bank of America and Goldman Sachs exceeded second-quarter profit expectations, while Citigroup reported a 45% jump in second-quarter profit and its highest quarterly revenue in a decade. Morgan Chase’s investment banking fees rose to its highest level since 2021. The bank’s profit was the highest ever posted by a US bank in a quarter. Morgan Stanley will report second-quarter results on Wednesday.
US Senate Democrats block $1.15 trillion defence bill
US Senate Democrats blocked a $1.15 trillion annual defence policy bill on Tuesday on grounds that US President Donald Trump did not consult with Congress on his decision to send US forces into the conflict.
Even though the yes votes outnumbered no votes by 50-46, the bill fell short of the 60 votes needed to move ahead in the 100-member Senate.
Switch taps banks for $10-billion IPO
According to a Reuters report, data center operator Switch has hired investment banks for an initial public offering (IPO) that could raise up to $10 billion as soon as the fourth quarter. The offer will value the company at close to $80 billion, including debt.
The report added that Goldman Sachs and JPMorgan Chase have been tapped as lead underwriters for the offering. The size, timing and valuation remain under discussion and could still change.
Shein scheduled for Hong Kong IPO hearing tomorrow
Moving a step closer towards launching the much-awaited public issue, fast-fashion retailer Shein is reportedly scheduled for a Hong Kong IPO hearing with the city’s stock exchange on Thursday.
The company last week received the Chinese securities regulator’s nod to go ahead with its Hong Kong IPO plan. According to the report, the company could possibly aim to list in September or October, targeting a valuation of $40 billion to $50 billion.
