General Market News

At the Reuters NEXT Asia conference in Singapore, some executives and officials expressed optimism that the worst of the energy shock from the Iran war has passed, despite ongoing escalations including recent U.S. strikes and Iranian attacks on Kuwait and Bahrain. The conflict has disrupted roughly a fifth of global oil and LNG supplies through the Strait of Hormuz, with Asia being most vulnerable due to its heavy reliance on Middle Eastern energy.

• Temasek's CIO stated 'the worst is behind us' from a market perspective, with peak uncertainty over despite ongoing tail risks and conflict escalation
• Thailand's Vice Finance Minister noted energy imports represent 8% of GDP but sees the crisis as an opportunity to accelerate green economy investments in EVs, solar panels, and related industries
• Hong Kong Investment Corporation views market volatility and valuation changes as a 'perfect window to buy' for long-term investors, particularly in sustainable aviation fuel and green energy sectors

UK gaming firm Playtech forecasted 2026 adjusted core profit of at least €270 million, significantly above analyst expectations of €219 million, driven by strong performance in the United States and Latin America. The company expects first-half 2025 adjusted core profit to rise 70% year-over-year to €155 million, largely due to its partnership with Hard Rock Digital.

• 2026 profit forecast of €270 million exceeds company-compiled analyst expectations of €219 million by 23%
• First-half 2025 adjusted core profit expected to jump 70% year-over-year to €155 million, driven by 'exceptionally strong' US performance through Hard Rock Digital partnership
• Second-half profit expected to decline due to investments in a new Brazil partnership and higher UK gambling taxes, though Brazil deal is anticipated to support 2027 growth

Taiwan's central bank governor Yang Chin-long warned of potential AI bubble risks despite real growth in the sector, citing concerns about speculative capital expenditures and aggressive corporate borrowing in tech. The warning comes as Taiwan's AI-driven tech sector, led by TSMC, has propelled stocks to record highs this year. The central bank held interest rates steady in June, though the decision was not unanimous.

• Governor Yang stated that while AI has real growth potential, over-expansion through excessive leveraging is a primary concern for the central bank
• Taiwan plays a crucial role in the global AI supply chain for companies like Nvidia and Apple, with TSMC leading the semiconductor manufacturing sector
• The central bank's June decision to hold rates steady was made despite AI boom concerns, reflecting the underperformance of traditional industries relative to the booming tech sector

Britain's Spire Healthcare announced that the deadline for Toscafund Asset Management to make a formal takeover offer has been extended for the third time to August 6. Toscafund, Spire's second-largest investor with an 11% stake, has proposed a 250 pence-per-share offer for Britain's largest provider of hip and knee operations amid surging demand for private healthcare due to record NHS waiting lists.

• Toscafund has tabled a 250 pence-per-share offer and holds nearly 11% of Spire's shares
• The deal would give Toscafund control of Britain's largest hip and knee operation provider at a time when record NHS waiting lists are driving increased demand for private healthcare
• This is the third extension of the takeover deadline; Toscafund previously built its stake while opposing a similar 250 pence-per-share bid from Ramsay Health Care

Binance CEO Richard Teng announced that trading volume in U.S. stocks and ETFs on the cryptocurrency exchange has surpassed $3 billion since launching the service one month ago. The disclosure was made during an interview at the Reuters NEXT Asia event in Singapore, highlighting Binance's expansion into traditional asset trading.

• Binance's U.S. stock and ETF trading exceeded $3 billion in just one month since launch
• The announcement signals Binance's diversification beyond cryptocurrency into traditional financial assets
• Richard Teng serves as co-CEO of Binance, one of the world's largest cryptocurrency exchanges

Dr Reddy's Laboratories announced it is delaying commercial supplies of semaglutide, the active ingredient in blockbuster diabetes and obesity drugs, due to quality issues with certain batches found to be out of specification. The Indian drugmaker is investigating the root cause while assuring there is no impact on patient safety or existing regulatory filings. Dr Reddy's had launched its semaglutide injection, Obeda, in India to compete with Novo Nordisk's Ozempic and Wegovy.

• Certain batches of semaglutide were found to be out of specification, prompting an investigation into the active pharmaceutical ingredient quality issue
• Dr Reddy's did not specify the duration of supply delays or provide further details, though the company stated patient safety and regulatory filings remain unaffected
• More than half a dozen Indian drugmakers have launched lower-cost copies of Novo Nordisk's products, though demand plateaued in June according to Pharmarack research

Back-to-school spending among U.S. households with school-age children is expected to decline 6% on an inflation-adjusted basis this year, with average spending dropping from $570 to $557 per K-12 student, according to a Deloitte survey. The decline reflects weakening consumer sentiment, with 57% of consumers expecting economic conditions to worsen over the next six months. Families are prioritizing necessities like clothing while cutting technology purchases and delaying shopping until closer to the school year start.

• Total projected spending of $30.4 billion represents a decrease to $557 per K-12 student from $570 last year, with about half of households planning to reduce dining out and entertainment to accommodate school expenses
• Despite value-seeking behavior, about one-third of K-12 parents classified as 'hyper value-seekers' are expected to spend 14% more than other shoppers through strategic purchasing
• The back-to-school season typically accounts for 2.3% of total annual U.S. retail sales, with $128.2 billion spent in 2025, though families are delaying purchases compared to earlier shopping trends

Oil prices rallied sharply after President Trump declared the interim deal with Iran was over, pushing WTI crude toward $79 per barrel and Brent toward $81. The geopolitical risk premium has reignited inflation concerns, pressuring bonds and gold as higher oil prices threaten to increase fuel and transportation costs. Both benchmarks are testing critical resistance levels that could determine whether prices advance toward $90-$100 or consolidate in current ranges.

• WTI crude rebounded from $68 support and is testing resistance at $79-$80, with a breakout potentially opening a path toward $89 and eventually $100
• Brent crude is hovering at $81 resistance after bouncing from $72-$74 support, with a break above $81-$83 targeting $90-$95
• Market volatility remains elevated as oil prices are driven primarily by Gulf headlines and Iran-related geopolitical risks rather than traditional supply-demand fundamentals

Oil prices rose over 1% on Thursday after the U.S. military launched fresh strikes on Iran in response to Tehran's attacks on commercial shipping near the Strait of Hormuz. President Trump signaled he is no longer interested in negotiating with Iran, escalating tensions in a region critical to global energy supply.

• Brent crude futures advanced 1.03% to $78.82 per barrel, while U.S. crude rose 1.06% to $74.29 per barrel
• The U.S. Central Command conducted strikes following Iranian attacks on commercial shipping in and around the Strait of Hormuz
• The Strait of Hormuz is one of the world's most important energy chokepoints, where even limited disruption can significantly impact pricing, freight costs and market sentiment

China's consumer price growth slowed to 1% in June, missing expectations of 1.1%, while producer prices jumped 4.1% year-over-year, outpacing May's 3.9%. The divergence reflects elevated energy costs and strong export demand dampening domestic consumption, reinforcing China's two-speed economic growth pattern.

• Consumer sentiment remains subdued due to the prolonged housing downturn's negative wealth effect on households
• Producer price growth was driven by rising commodity costs from Middle East conflict supply disruptions and increased demand for AI computing equipment and semiconductors
• Beijing is expected to refrain from major stimulus measures given robust export and manufacturing performance, with the next policy opportunity at the Politburo meeting in late July

Luxshare, a major Chinese electronics manufacturer and key Apple assembly partner, debuted on the Hong Kong Stock Exchange on Thursday with shares falling 5% in early trading. The company, already listed in Shenzhen since 2010, is best known as an AirPods assembler but has expanded into automotive electronics and other sectors. Apple represents approximately 70% of Luxshare's revenue, making the supplier heavily dependent on the tech giant.

• Luxshare's business mix comprises 79.5% consumer electronics, 11.8% automotive electronics, and 7.4% communications and data centers according to its prospectus
• The company has pursued strategic acquisitions to diversify beyond Apple, including stakes in German automotive supplier Leoni and investments in autonomous driving firm Momenta and semiconductor foundry Nexchip
• Apple's dominant 70% revenue contribution highlights Luxshare's significant concentration risk and dependence on a single major customer

Federal Reserve policymakers expressed heightened inflation concerns at Chair Kevin Warsh's first FOMC meeting in June, keeping interest rates unchanged at 3.5%-3.75% while discussing potential scenarios for both rate cuts and hikes. The minutes revealed uncertainty about inflation's direction, with PCE inflation forecasts revised upward to 3.6% for year-end, and nine of 18 voting members projecting rate hikes by end of 2026.

• The Fed unanimously held rates steady but revised 2024 PCE inflation forecast up from 2.7% to 3.6%, reflecting elevated energy prices and persistent price pressures above the 2% target
• Nine of 18 FOMC voting members now project at least one interest rate hike before end of 2026, with six forecasting two 25-basis-point increases if inflation remains elevated
• Warsh's leadership marks a communication shift, with the FOMC releasing a shorter post-meeting statement and most participants preferring to remove language suggesting an 'easing bias' toward future rate cuts

The U.S. Senate Commerce Committee will vote on July 15 on bipartisan legislation to codify and strengthen a Biden administration ban that effectively prevents Chinese automakers from selling passenger vehicles in the American market. The bill, proposed by Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin in April, aims to take additional steps to block China from entering the U.S. light-duty vehicle market.

• The legislation would formally codify an existing Biden administration regulation that bans all Chinese automakers from selling passenger vehicles in the U.S.
• The bipartisan bill is co-sponsored by Republican Senator Bernie Moreno of Ohio and Democratic Senator Elissa Slotkin of Michigan
• The Senate Commerce Committee is scheduled to vote on the measure on July 15

SpaceXAI launched its Grok 4.5 AI model on Wednesday, positioning it as the company's most advanced offering designed for coding and agentic tasks. The model was trained on tens of thousands of Nvidia GB300 GPUs and is immediately available through SpaceXAI's developer tools and the recently acquired Cursor AI coding agent. SpaceXAI, formed after Elon Musk's xAI was acquired by SpaceX in February, is competing directly with Anthropic and OpenAI in the enterprise AI tools market.

• Grok 4.5 is priced competitively at $2 per million input tokens and $6 per million output tokens, significantly cheaper than Anthropic's Claude Opus 4.8 ($5/$25) and matching OpenAI's GPT-5.6 Luna output pricing
• SpaceX acquired Anysphere (maker of Cursor) last month to strengthen its position in the enterprise AI tools market, and Cursor is now partnering to integrate Grok 4.5
• Musk described Grok 4.5 as an 'Opus-class model' that is faster, more token-efficient and lower cost than competitors, with EU availability expected mid-July

The Dow Jones fell 577 points (1.1%) on Wednesday as President Trump declared the Iran ceasefire 'over' and threatened further military strikes following attacks on commercial vessels in the Strait of Hormuz. Oil prices surged over 4-5%, lifting energy stocks while weighing on consumer, travel, and airline sectors sensitive to higher fuel costs.

• Brent crude jumped 5.43% to $78.19 per barrel and WTI rose 4.37% to $73.52 as Trump warned 'we're going to hit them hard tonight,' escalating Middle East geopolitical risks
• Energy stocks outperformed with ConocoPhillips and Chevron up about 1% and Marathon Petroleum up 3%, while airlines (United, Delta) and travel stocks (Booking Holdings down 4%) declined on fuel cost concerns
• Fed minutes revealed policymakers remain divided on rate path, with many seeing rates within or below current range by year-end while many others expect rates above current levels

A federal judge approved the SEC's settlement with Elon Musk regarding his Twitter stock purchase disclosures. Judge Sparkle Sooknanan stated the settlement met minimum standards of fairness and reasonableness, while noting it was up to voters to decide if the SEC adequately held Musk accountable.

• U.S. District Judge Sparkle Sooknanan approved the settlement in Washington, D.C.
• The judge emphasized her limited role was only to assess whether the settlement met minimum fairness standards
• Judge stated the public should decide 'at the ballot box' if the SEC's accountability measures were sufficient

The U.S. National Highway Traffic Safety Administration (NHTSA) has identified a 'clear pattern' of autonomous vehicles interfering with emergency response operations and is demanding immediate action from self-driving car companies. NHTSA head Jonathan Morrison documented multiple instances of AVs driving into active emergency scenes, blocking ambulances and firefighters, and failing to recognize basic safety signals. The agency plans to meet with vehicle developers by month's end to review their proposed solutions.

• Autonomous vehicles have repeatedly driven into active emergency scenes and blocked paths of ambulances and firefighters
• AVs are failing to recognize and respond to basic safety conditions including flashing lights, flares, smoke, fire, and traffic cones
• NHTSA has scheduled mandatory meetings with self-driving car developers by the end of the month to address the safety issues

Oil prices rallied significantly on July 8, 2026, after President Trump threatened additional strikes against Iran and revoked sanctions waivers that allowed Iranian oil sales. WTI crude rose 1.56% and Brent crude jumped 2.73% as geopolitical tensions in the Middle East escalated, with Trump threatening to bomb Iranian infrastructure and potentially resume a naval blockade of Iranian ports.

• The U.S. revoked Iran's oil export sanctions waiver in response to attacks on vessels in the Strait of Hormuz, removing Iranian supply from global markets
• WTI crude tested resistance at $74.50-$75.00 while Brent oil approached $80.00, with potential closure of the Strait of Hormuz threatening further price increases
• Weekly EIA data showed U.S. crude inventories increased 3 million barrels (vs. expected decline of 2.4 million), while domestic production rose to 13.86 million bpd and Strategic Petroleum Reserve fell to 319.5 million barrels

Oregon's utility regulator is implementing a new rule starting Wednesday that raises electricity rates for data centers by an average of 29% while lowering rates for residential (1.3% decrease), commercial (2.1% decrease), and other industrial customers (1.4% decrease). The change, mandated by the state's POWER Act, affects about 963,000 customers in Portland General Electric's service territory and aims to ensure data centers pay their fair share of grid costs.

• PGE is the first Oregon utility to adopt the new rate schedule under the POWER Act, which was signed by Gov. Tina Kotek after passing the Democratic-controlled legislature largely along party lines
• The Data Center Coalition filed a petition for reconsideration, arguing the order is 'significantly out of step' with approaches in other states, though it supports data centers paying full energy costs
• The rate changes come amid growing concerns about the rapid buildout of AI-powered data centers increasing load on the electric grid and shifting costs to consumers and other businesses

The June 2026 FOMC meeting minutes revealed unanimous agreement to hold interest rates steady, though members expressed concern about inflation risks from the Iran conflict, tariffs, and AI-driven demand. While the Fed remains united on policy, most participants see upside risks to inflation, with some suggesting rate hikes may be warranted if price pressures persist despite anchored long-term inflation expectations near the 2% target.

• All FOMC participants supported maintaining current rates, though a few saw a case for hiking; most participants judged inflation risks tilted to the upside due to Middle East conflict, tariffs, and AI buildout effects
• Staff forecast inflation to remain elevated through 2026-2027 before declining to 2% by 2028, with GDP growth expected near potential and unemployment stable; foreign growth weakened except in high-tech Asian economies
• Members were divided on year-end rate outlook: many saw rates within or below current range, while many others anticipated rates above current levels; statement was shortened to remove easing bias language