Market UpdatesJul 07, 20262 Min
Global market wrap: Asian stocks deep in red; Samsung reports 19-fold jump in profit, Microsoft cuts jobs
We are back with quick updates on important developments around stock markets, commodities and companies across the world.
Asian markets extended declines on Tuesday despite a positive overnight US trading session that saw the Dow surpassing the 53,000 milestone for the first time.
On Tuesday, South Korea’s benchmark Kospi plunged as much as 7% to 7,493 led by a decline in chip stocks. The correction was triggered after Samsung Electronics’ quarterly earnings exceeded the company’s combined profit over the previous three years, raising sustainability concerns. Japan’s Nikkei 225 also dropped 1.7% to 68,526.
China’s Shanghai Composite index was trading down 1% at 3,999, Australia’s S&P/ASX 200 fell 0.3% to 8,806, while Hong Kong’s Hang Seng Index dropped 0.5% to 23,494.
Singapore’s Straits Times, however, bucked the trend to trade 0.6% higher at 5,292 on Tuesday.
US stock futures were trading mixed on Tuesday. S&P 500 futures fell 0.2%, Nasdaq 100 futures slipped 0.9%, while futures tied to the Dow were trading in the positive zone, up 0.1%.
In the regular session on Monday, the S&P 500 rose 0.7%, while the Nasdaq 100 climbed 1.1%. The Dow Jones Industrial Average edged up 0.3% to close above 53,000 for the first time.
Oil prices gained on Tuesday after reports of attacks on ships in the Strait of Hormuz, hinting at the fragile nature of the US-Iran peace talks. The US crude oil futures for July delivery rose 0.6% to $68.98 per barrel by 2352 ET. Brent futures, the international benchmark, for August delivery gained 0.7% to $72.51 per barrel.
Gold prices continued to fall as investors awaited the US Federal Reserve’s June meeting minutes to be released on Wednesday for insights into the monetary policy direction. Spot gold dropped by 0.7% on Tuesday to $4,134 per ounce by 0422 GMT, while US gold futures for August delivery lost 0.5% to $4,145 per ounce.
Here’s a look at some major developments across global markets:
Samsung Electronics reports 19-fold jump in Q2 profit
Samsung Electronics on Tuesday reported a 19-fold surge in its second-quarter operating profit at 89.4 trillion won ($58.4 billion) compared with 4.7 trillion won a year ago. Operating profit was 57.2 trillion won in the prior quarter.
Revenue for the April-to-June period stood at 171 trillion won, up from 133.9 trillion won in the previous quarter.
Toyota to move Tacoma pickup truck production from Mexico to Texas
Toyota Motor has announced that it is investing $3.6 billion to move production of the Tacoma midsize pickup truck from a plant in Mexico to its Texas manufacturing campus.
The auto maker said that the investment is expected to create 2,000 US jobs at the Texas facility, add a second vehicle assembly line and roughly double the size of the 2.7-million-sq ft plant by 2030.
Microsoft cuts 4,800 jobs; Xbox to lose 20% staff
Microsoft announced on Monday that it was cutting 4,800 jobs, representing 2.1% of its workforce, to cut costs.
Its Xbox division will lose about one-fifth of its staff, including 1,600 jobs on Monday and additional cuts in the coming months. Xbox CEO Asha Sharma wrote in an email to division employees that the company Xbox would be firing a total of 3,200 people.
Versant to buy golf simulator company for $530 million
Versant Media Group has agreed to acquire golf simulation company Full Swing for about $530 million in cash from private equity firm Bruin Capital.
Bruin Capital had purchased Full Swing in 2021 for $160 million. The current transaction is expected to close before December 31, the two companies said in a statement.
Singapore, Indonesia push cross-border electricity trade
New agreements are powering up the target set up by Singapore and Indonesia to achieve an electricity trade of 3.4GW by 2035.
Danantara Indonesia signed memoranda of understanding (MoUs) with Keppel Electric and Sembcorp Utilities to explore the offtake of imported low-carbon electricity. Meanwhile, an MoU between Singapore Energy Interconnections and Danantara will facilitate information-sharing and potential collaboration on commercial and technical issues related to cross-border interconnector development.
Canada picks Germany’s TKMS for 12 new submarines
Announcing the largest defence procurement in Canada’s history, Prime Minister Mark Carney said it wants Germany’s TKMS to build up to 12 submarines to help replace its ageing fleet.
Carney did not disclose the value of the deal, but said that the contract will be finalized by the end of next year at the latest, and the first four submarines are expected to be delivered by 2034.
