Market UpdatesJul 06, 20262 Min
Global market wrap: Asian stocks decline; oil drops as Opec+ agrees to raise August output, SK Hynix Eyes $28 Billion US Listing Debuts
We are back with quick updates on important developments around stock markets, commodities and companies across the world.
Asian markets resumed their downward trend on Monday as the tech rally lost momentum and investors shifted focus to earnings and the interest rate scenario.
The minutes to the US Federal Reserve’s latest meeting to be released on Wednesday would set the tone for the coming week for the markets.
On Monday, Japan’s Nikkei 225 dropped 1.1% to 68,990, while South Korea’s benchmark Kospi slid 1.7% to 7,950.
China’s Shanghai Composite index was trading at 4,047, flat on Monday, up 0.08%. Australia’s S&P/ASX 200 was trading lower by 0.2% to 8,826.
Singapore’s Straits Times slipped 0.1% to 5,237, while Hong Kong’s Hang Seng Index was the only key winner on Monday, trading up 0.8% to 23,537.
US stock futures were trading higher on Monday after a long weekend. S&P 500 futures rose 0.2%, and Nasdaq 100 futures gained 0.6%, while futures tied to the Dow were almost unchanged compared with Thursday’s close. Notably, the markets were closed on Friday for the Independence Day holiday.
Oil prices fell on Monday after OPEC+ agreed to raise production by 188,000 barrels per day in August as the Strait of Hormuz gradually reopens. The US crude oil futures for July delivery fell 0.36% to $68.44 per barrel by 2353 ET. Brent futures, the international benchmark, for August delivery dropped 0.6% to $71.72 per barrel.
Spot gold was down again by 0.3% on Monday to $4,162 per ounce by 0353 GMT after posting first weekly rise in five weeks. However, US gold futures for August delivery gained 1.2% to $4,175 per ounce.
Here’s a look at some major developments across global markets:
Samsung Electronics to report earnings tomorrow, may post 18-fold jump in profit
Samsung Electronics, the world's largest memory chipmaker by sales, is likely to estimate that its operating profit jumped about 18-fold to another record high in the second quarter compared with a year ago.
On Tuesday, the company will report its Q2 earnings, which may be buoyed by AI growth that has pushed chip prices higher.
South Korea’s SK Hynix to launch $28 billion US listing today
Marking one of the world’s largest new share sales, South Korean chipmaker SK Hynix will launch a US listing today to raise about $28 billion.
The company will sell 17.79 million new shares in the depository receipt listing on the Nasdaq. The stock’s price range is due to be revealed soon based on SK Hynix's Seoul trading price.
Lockheed Martin leading race for naval defence firm Ultra Maritime
According to a report, Lockheed Martin is leading the race to buy naval defence group Ultra Maritime for around $3.5 billion. Guggenheim and JPMorgan are advising on the sell side, according to the report.
Another report last week mentioned that talks were still ongoing between the two companies and a deal could be announced as early as this week.
UK budget airline easyJet agrees to $7.3 bn takeover bid from Castlelake
In a development that could potentially shake up Europe’s aviation sector, British budget airline easyJet has agreed in principle to a takeover bid from US investment firm Castlelake.
The new offer at £6.90 a share represents a 73% premium to easyJet’s closing price on May 29. The transaction values the carrier at up to £5.5 billion ($7.34 billion).
Hong Kong market to see a record wave IPO lock-up shares this week
Hong Kong’s stock markets, which are already struggling for the past couple of weeks, could see additional pressure in the coming days as a wave of share lock-up expirations in the new stock listings are scheduled for this week.
As many as six companies are facing expirations this week, which include Knowledge Atlas Technology that will see 25.6 million shares freed from a six-month cornerstone investor lock-up on Wednesday, nearly 6% of its outstanding shares. MiniMax and Shanghai Iluvatar CoreX Semiconductor are also facing expirations this week, with 45% and 4.3% of their respective outstanding shares set to be unlocked.
