General Market News

US stocks fell sharply on Thursday with the Dow dropping 604 points (1.2%) and the Nasdaq declining 1.8%, pressured by surging oil prices amid Middle East tensions and disappointing market reactions to Alphabet and Tesla earnings. Oil prices jumped over 5% after attacks on Saudi tankers and Trump's threats against Iran, raising inflation concerns and pushing Treasury yields to their highest since January 2025.

• Brent crude rose 6% above $99/barrel and WTI climbed 5% above $91/barrel after Houthi attacks on Saudi tankers and Trump's warning to bomb Iranian infrastructure for any future attacks in the Strait of Hormuz
• Alphabet shares fell despite beating earnings estimates due to plans to increase AI infrastructure spending, while Tesla disappointed with a 14% revenue decline and operating expenses growing faster than revenue
• Weekly jobless claims dropped to 187,000, the lowest level since 1969, signaling labor market resilience but reinforcing inflation concerns as energy prices surge

The European Central Bank held its main interest rate unchanged at 2.25% on Thursday, but traders are anticipating a rate hike in September as renewed Middle East hostilities drive oil prices higher. ECB President Christine Lagarde warned that energy price spikes pose upside risk to inflation, which is expected to remain 'well above target' until the first half of 2027.

• Eurozone inflation eased to 2.8% last month from 3.2% in May, but remains above the ECB's 2% medium-term target
• Traders expect a 0.25% rate hike in September as elevated inflation expectations may require tighter monetary policy
• The rate hold follows a quarter-point hike in June 2026, the first rate rise since 2023, driven by Iran war energy shock impacts on Europe's economy

The 10-year U.S. Treasury yield rose above 4.7% on Thursday, reaching its highest level since mid-January 2025, driven by surging oil prices amid escalating Middle East tensions. Reports of tanker attacks off Saudi Arabia and renewed U.S. threats against Iran pushed Brent crude near $100 per barrel, raising inflation concerns and pushing bond yields higher across global markets.

• The 10-year Treasury yield climbed 5 basis points to 4.707%, while the 30-year yield rose above 5.188% as oil futures surged 4-5% with Brent crude approaching $100 per barrel
• Weekly jobless claims came in at 187,000, well below the expected 212,000, suggesting labor market strength despite geopolitical uncertainties
• Global bond yields rose in tandem, with UK 10-year yields topping 5% as new Prime Minister Andy Burnham announced £100 million in property tax cuts for hospitality venues

Chinese memory chip manufacturer CXMT Corp will debut on the Shanghai Stock Exchange on July 27 after raising $8.7 billion in Asia's largest IPO this year. The listing reflects China's state-led push to build domestic technology champions and achieve greater semiconductor and AI self-sufficiency amid U.S. export restrictions.

• CXMT sold 6.69 billion shares and raised 58.8 billion yuan ($8.7 billion), with proceeds potentially reaching 66.61 billion yuan if the over-allotment option is fully exercised
• The company manufactures DRAM chips used in computers, smartphones, servers, and artificial intelligence systems
• IPO proceeds will fund chip production capacity, research and development activities, and provide working capital for operations

Toyota, Honda, and Hyundai Motor Group control 86% of the U.S. hybrid vehicle market, which grew nearly 20% year-over-year in the first half of 2026. These three automakers invested heavily in hybrid technology while competitors focused on EVs, a strategy now paying off as consumers favor hybrids due to high fuel prices, better selection, and concerns about EV range and charging infrastructure.

• Toyota dominates with 50% market share, selling over 600,000 hybrids in H1 2026 through its Toyota and Lexus brands, while major U.S. automakers like GM have minimal hybrid offerings
• Hybrid buyers can save 30-50% on fuel costs and recover the vehicle's up-front premium in 2-3 years, making the value proposition significantly more compelling than in earlier years
• By 2030, Baum & Associates projects hybrid market share will reach 33% while EV market share plateaus at 17%, validating the long-term hybrid investment strategy

U.S. stock futures fell 0.3% on Thursday as disappointing Big Tech earnings from Alphabet and Tesla raised concerns about AI spending returns, while oil prices surged to $98/barrel amid escalating Middle East tensions. The oil spike revived inflation worries, pushing traders to price in a 35% chance of a Fed rate hike at the July meeting, up from 12% a week ago.

• Alphabet's cloud results disappointed as investors focused on higher capital spending plans; Tesla dropped 6% after reporting its first profit decline in over two years
• Brent crude reached $98/barrel, the highest since early June, due to Iranian-aligned Houthi attacks opening a new front near the Bab el-Mandeb strait
• Market expectations for a 25-basis-point Fed rate hike jumped to 35% for July and 55% for September as 2-year Treasury yields hit a 17-month high

QatarEnergy has extended force majeure on LNG supplies to Asian buyers through mid-September and is chartering out tankers through October, signaling prolonged export disruptions due to the closure of the Strait of Hormuz amid the Iran war. Qatar accounts for about a fifth of global LNG trade, and the extended outage threatens to tighten supplies and push up prices ahead of winter.

• Force majeure notices to buyers in South Korea and India, originally expiring in August and early September, have been extended until mid-September with possible further extensions to October
• At least nine QatarEnergy-controlled LNG carriers have been sub-chartered to third parties including Chevron, BP, and Cheniere on spot deals lasting 30 to 90 days
• QatarEnergy has shut liquefaction trains and suspended exports after renewed Iranian actions on tankers transiting the Strait of Hormuz this month clouded prospects for return to pre-war flows

Molina Healthcare stock fell 9% in premarket trading despite beating Q2 earnings estimates, as investors focused on weaknesses in its Obamacare and Medicaid businesses. The company faces headwinds from declining enrollment due to expired COVID-era subsidies and tighter Medicaid eligibility requirements, raising concerns about long-term earnings power through 2027.

• Americans are dropping Obamacare marketplace plans as they struggle with payments after COVID-19 pandemic subsidies ended
• Medicaid membership continues lagging expectations due to tight state budgets, new work requirements, and twice-yearly eligibility checks that could increase attrition in 2026-2027
• Molina raised annual adjusted earnings guidance to at least $5.25 per share, a $0.25 increase that disappointed analysts who expected at least $0.50 based on first-half performance

Capital One executive Brian Johnson is set to appear before the Senate Banking Committee on Thursday for his nomination to lead the Consumer Financial Protection Bureau (CFPB). His nomination represents Trump's third attempt to fill the position after two prior nominees were withdrawn, and could mark a shift from acting Director Russell Vought's efforts to effectively shut down the agency. Johnson, a former CFPB Republican official and vocal agency critic, is expected to face scrutiny over his extensive industry ties.

• Johnson declared net assets between $336,000 and $2.7 million and received roughly $740,000 in Capital One salary and bonuses; he has agreed to recuse himself from Capital One matters for two years
• Acting Director Vought has halted virtually all CFPB activities, attempted to fire most staff, and dropped multiple enforcement actions against companies including Capital One and Zelle banks, though courts have blocked some efforts
• Johnson has professional ties to multiple CFPB-regulated entities including Capital One and major banks operating Zelle; former colleagues expect he will not seek to 'decapitate' the agency despite likely pursuing Trump's policy priorities

Cryptocurrency exchange BitMEX announced it will shut down operations effective September 23, urging its 2 million users to close positions and withdraw funds. The closure comes amid struggling crypto prices and follows a 2022 guilty plea by its co-founders for violating anti-money laundering laws, though they were later pardoned by President Trump.

• Owner HDR Global Trading made the shutdown decision as part of a strategic business review, with user assets remaining safe and under their control
• Bitcoin has plummeted nearly 50% from its October 2025 all-time high of $126,223 to around $65,676, amid market volatility and persistent ETF outflows
• BitMEX co-founders pleaded guilty in 2022 for failing to implement Bank Secrecy Act-compliant anti-money laundering programs between 2015-2020, but received pardons from Trump as part of looser crypto regulation policies

Discounts on Russian crude oil sold to India have disappeared as Middle Eastern supply disruptions force Indian refiners to seek alternative sources. The shift follows Houthi attacks in the Red Sea and renewed U.S.-Iran tensions affecting the Strait of Hormuz, driving up global oil prices. Indian state refiners, which sell fuel at subsidized rates domestically, face squeezed profit margins from higher crude costs.

• Russian Urals crude discounts, which recently reached more than $10 per barrel below dated Brent at Indian ports, have evaporated as traders stop offering price cuts
• India's Bharat Petroleum Corp (BPCL), processing over 800,000 barrels per day, met 69% of its oil needs through spot purchases in Q2 and is actively securing cargoes for August-September delivery
• BPCL and other Indian state refiners reported quarterly net losses amid rising crude costs and domestic fuel subsidies, highlighting vulnerability to geopolitical supply shocks

DeepSeek founder Liang Wenfeng told investors the Chinese AI startup prioritizes developing artificial general intelligence over profits and plans to keep its most advanced models open-source. The company recently raised funding at a $52 billion valuation after its low-cost V3 and R1 models challenged U.S. AI dominance despite chip export restrictions. Computing power access remains the primary constraint facing the company.

• DeepSeek completed its first funding round at approximately $52 billion valuation, reversing years of rejecting external capital amid pressure from competitors like ByteDance, Moonshot, and Z.ai
• Liang stated computing power is the biggest constraint and the main gap with U.S. competitors is resource access rather than technical capability
• The company plans to build large AI computing clusters but has not decided on developing proprietary chips, with Liang preferring to buy chips at reasonable prices rather than manufacture them

Asian and European LNG buyers plan to demand lower prices and additional supply guarantees from Qatar and the UAE following disruptions from the U.S.-Iran war that has halted most flows through the Strait of Hormuz. The conflict has undermined Gulf producers' reputation for reliability, weakening their negotiating power despite controlling one-fifth of global LNG export capacity.

• Long-term LNG contract prices from the Gulf have already dropped from 12.6%-12.7% of Brent crude to closer to 12.3% as buyers factor in higher regional risk and insurance costs
• QatarEnergy has shut liquefaction trains and declared force majeure on deliveries from April to early September, with Italy's Edison losing supplies representing 10% of Italy's annual demand
• Buyers will seek replacement cargo guarantees and diversification commitments, potentially from Qatar's projects outside the region like its Golden Pass LNG terminal in the United States

Yemen's Iran-backed Houthis claimed drone and missile strikes on two Saudi Arabian oil tankers in the Red Sea, marking the first attacks since announcing a naval blockade against Saudi Arabia. The escalation comes as the U.S. completed its 12th consecutive night of strikes against Iranian military targets, with President Trump threatening further retaliation for any Iranian attacks in the Strait of Hormuz.

• Saudi Press Agency confirmed the tanker Encelia was struck, causing a fire at the bow with all crew safe, though no update was provided on the second tanker, Layla
• Trump threatened to destroy one Iranian bridge or power plant for each attack on ships in the Strait of Hormuz, prompting Iran to pledge retaliation against U.S.-linked infrastructure in the region
• Oil prices rose on the escalation, with Brent crude futures up 2.1% to $96.08 per barrel and WTI futures climbing 1.5% to $88.06

Indian pharmaceutical company Cipla reported a 39.2% decline in first-quarter profit to 7.89 billion rupees ($81.73 million), missing analyst estimates of 8.17 billion rupees. This marks the company's third consecutive quarterly profit decline, driven by weak U.S. sales of generic cancer drugs and supply disruptions affecting lanreotide, a rare tumor treatment.

• Consolidated net profit fell to 7.89 billion rupees ($81.73 million) for the quarter ended June 30, below the 8.17 billion rupee analyst consensus
• The 39.2% profit drop represents the third straight quarter of declining earnings for one of India's largest drugmakers by revenue
• U.S. business was pressured by muted generic cancer drug sales and supply chain issues with lanreotide, a treatment for rare tumors

German pharmaceutical company Sartorius reported half-year earnings slightly above market expectations on Thursday, driven by stable recurring business and U.S. tariff refunds. The company achieved an underlying EBITDA margin of 30.3%, narrowly beating the 30% consensus estimate, and confirmed its full-year 2026 guidance.

• Underlying EBITDA margin reached 30.3%, just above the Vara consensus estimate of 30%
• Earnings beat attributed to stable recurring business and the positive effect of U.S. tariff refunds
• Company reaffirmed its full-year 2026 guidance following the half-year results

Dr Reddy's Laboratories shares fell 4.4% on Thursday to a one-year low of 1,130 rupees after the Indian drugmaker reported weaker-than-expected quarterly results and experienced supply disruptions for semaglutide. Brokerages responded by cutting their earnings forecasts, making the stock the top loser on both the pharma index and the Nifty 50.

• Stock dropped to 1,130 rupees, its lowest level in over one year
• The company faced supply disruptions for semaglutide, a key diabetes and weight-loss medication
• Dr Reddy's was the worst performer on both the pharma index and the benchmark Nifty 50 index

Oil prices rose approximately 2% on Thursday after President Trump threatened to bomb Iranian bridges or power plants in retaliation for attacks on ships in the Strait of Hormuz. Iran warned it would strike U.S.-linked infrastructure and regional energy facilities if Washington proceeds, escalating tensions that have already disrupted crude supplies.

• Brent futures gained 2% to $95.99 per barrel while WTI advanced 1.7% to $88.27 per barrel following Trump's threats
• Iran responded that it would target regional infrastructure and energy facilities where the U.S. has interests if attacked
• The U.S.-Iran ceasefire has frayed since early July with Iranian attacks on vessels prompting U.S. retaliatory strikes, with core disputes over Strait of Hormuz passage administration remaining unresolved

U.S. jet fuel demand reached a record high of 2.15 million barrels per day during the week ended July 17, surpassing the previous record from December 2017. The surge was driven by the Soccer World Cup final between Spain and Argentina, which drew over 80,600 fans to New Jersey and contributed to record air travel, with more than 2.9 million passengers passing through TSA checkpoints on July 19.

• Jet fuel demand hit 2.15 million bpd, exceeding the prior weekly record of 2.11 million bpd set in December 2017
• The tournament was the first World Cup played across three countries (U.S., Canada, and Mexico), generating significant inter-regional and cross-border air travel
• U.S. refiners produced 2.18 million bpd of jet fuel the week before, a record high for that time of year, as they capitalized on strong demand

Macquarie Group announced that CEO Shemara Wikramanayake will retire on November 6 after eight years in the role and nearly four decades with Australia's top investment bank. Greg Ward, current Head of Banking and Financial Services, will succeed her. The company also reported higher net profits from its commodities and global markets segment.

• Wikramanayake led Macquarie through expansion into new markets, the COVID-19 pandemic, and significantly enhanced the company's brand recognition over her eight-year tenure as CEO
• Net profits from the commodities and global markets segment increased, though contribution from Macquarie Asset Management declined due to divestment of North American and European public investments business
• Greg Ward, currently leading Banking and Financial Services, has been named as Wikramanayake's successor effective November 6