Market UpdatesJul 27, 20262 Min
Global market wrap: Asian stocks rise as US-Iran conflict eases; Nvidia signs $500 billion deal with SK Hynix
We are back with quick updates on global developments around stock markets, commodities and companies that are creating buzz today.
Asian markets started the week on a positive note as the US-Iran conflict showed signs of easing after a tough fortnight. Iran reportedly said it would suspend attacks as long as the US also refrains from striking.
Most Asian indices rose, with Japan’s Nikkei 225 index inching up 0.06% on Monday to 64,651, China’s Shanghai Composite index gaining 0.4% to 3,829 and Hong Kong’s Hang Seng Index rising 0.7% to 25,142.
Australia’s S&P/ASX 200 jumped 1.1% to 8,871 on Monday, while Singapore’s Straits Times rose 0.2% to 5,600.
However, South Korea’s benchmark Kospi was down 0.7% to 6,642 on Monday.
US stock futures rose in overnight trade on Sunday as investors rejoiced a pause in the US-Iran flighting and hoped for encouraging quarterly numbers from giants like Amazon, Apple, Meta Platforms and Microsoft this week.
S&P 500 futures were trading higher by 0.7%, Nasdaq 100 futures climbed 1.1%, while futures tied to the Dow jumped 0.6%.
On Friday, the S&P 500 dropped 0.6%, the Nasdaq 100 slid 2.1% and the Dow Jones Industrial Average fell 0.4%, posting yet another weekly decline.
Oil prices slumped on Monday on easing Middle East concerns. The US crude oil futures for July delivery declined 4.8% to $85 per barrel by 0019 ET, while Brent futures for August delivery slipped 4.2% to $87.81 per barrel.
Gold prices rose on Monday as lower crude oil prices eased rate hike concerns. Spot gold was trading up 0.9% at $4,090 per ounce by 0419 GMT, while US gold futures for August delivery gained 0.5% to $4,092 per ounce.
Here’s a look at the key developments of the day:
Nvidia signs $500 billion deal with SK Hynix to secure memory supply
US chipmaker Nvidia announced that it has secured AI memory supply from South Korea’s SK Hynix to lock in a key component for its advanced processors and systems.
The agreement was announced late Friday in San Francisco. Nvidia said the deal could be worth $500 billion spanning over a number of years. It also includes the construction of large-scale data centers that are expected to come online in 2027.
Singapore tightens monetary policy as oil prices rise
In an unexpected move, Singapore on Monday tightened its monetary policy for a second consecutive time to deal with the recent oil price surge even as inflation in the country remained under control.
The Monetary Authority of Singapore (MAS) said it will increase the rate of appreciation of the Singapore dollar’s nominal effective exchange rate policy band “very slightly,” with the adjustment smaller than April’s. Unlike most central banks, MAS doesn’t set interest rates, but conducts its monetary policy by managing the Singapore dollar exchange rate against a trade-weighted basket of currencies within an undisclosed band.
Shein reports quarterly numbers ahead of IPO
Shein on Sunday reported a $99 million loss in the first quarter of the year due to slowing sales after the US removed an import duty exemption on small packages and a hefty one-time accounting charge.
The earnings were released as a part of Shein’s pre-IPO filing. The company, however, did not disclose the size of the Hong Kong IPO, offer price, timeline, or expected proceeds from the offering.
Baker Hughes Q2 earnings beat estimates
Baker Hughes, an oilfield services and energy technology company, posted a stronger-than-expected profit in the second quarter despite a marginal drop in revenue.
The company said earnings per share for the quarter were 64 cents, compared to analysts’ expectations of 50 cents, even as revenue fell 2% from a year earlier to $6.74 billion. Higher pricing, productivity gains and cost-cutting helped offset inflation and supported profit margins.
Frasers Group trying to install Michael Murray as CEO of Hugo Boss in takeover bid
According to a report, British company Frasers Group is exploring ways to install its chief executive Michael Murray as the CEO of Hugo Boss as it pursues its takeover of the German fashion house.
Frasers last week raised its holding in Hugo Boss to about 30.28%, crossing the threshold that triggers a mandatory bid under German takeover rules. Murray already sits on Hugo Boss’s supervisory board.
