Global markets traded mostly higher as below-forecast US producer inflation reinforced expectations for steady Federal Reserve policy and supported technology shares. AI and semiconductor strength drove gains across Wall Street, South Korea, and Japan, while European equities were mixed as softer commodity prices pressured UK-listed miners.
Wall Street gains as inflation cools
US stocks rose as softer producer inflation and lower oil prices eased concerns over further Federal Reserve tightening, while technology stocks advanced. The DOW traded flat, while the S&P 500 gained +0.5% and the NASDAQ rose +0.7%. July PPI was unchanged for the month, below expectations for a modest uptick, while core PPI rose +0.2%, also below forecasts. Super Micro Computer gained +5.7% as its post-earnings rally continued, while Micron (+6.6%) and Lam Research (+5.3%) advanced amid strength in semiconductor stocks. Netflix rose +3.8% after Bill Ackman’s Pershing Square disclosed a new stake, with Ackman saying the company had ‘won the streaming wars’. In contrast, Cisco plunged -8.9% as concerns over its gross margin outlook overshadowed stronger full-year guidance, while Cerebras fell -12.4% after swinging to a quarterly loss. Meanwhile, oil prices declined as President Trump shifted towards economic pressure on Iran, although uncertainty persisted over shipping through the Strait of Hormuz. In rates markets, the US two-year Treasury yield fell -6bp to 4.142%, while the US 10-year yield lost -5bp to 4.643%.
Earnings support mixed Europe
European markets edged lower as weakness in commodity stocks outweighed strong corporate earnings and continued AI-related strength. The STOXX 600 finished flat, while the UK’s FTSE 100 fell -0.6%, Germany’s DAX slipped -0.1%, and France’s CAC 40 lost -0.3%. Adyen surged +16.4% after raising its revenue growth outlook and signing OpenAI as a customer. In contrast, falling commodity prices pressured UK-listed miners, with Antofagasta (-6.8%) and Rio Tinto (-4.8%) among the largest declines. UK second-quarter GDP grew +0.4%, while June output rose +0.3%, ahead of expectations.
Chip rally lifts Asia-Pacific
Asia-Pacific markets were mixed as semiconductor and AI stocks rallied across South Korea and Japan, while weakness in China and Australia tempered regional gains. South Korea’s KOSPI surged +3.6%, led by SK Square (+9.1%), SK Hynix (+5.9%), and Samsung Electronics (+4.9%) as renewed AI demand optimism and plans to ease regulations for semiconductor megaprojects boosted sentiment. Japan’s Nikkei 225 gained +1.2% as technology stocks advanced following softer US inflation data, while China’s Shanghai Composite fell -0.5% and Hong Kong’s Hang Seng slipped -0.2%, with Tencent falling -4.5% following its quarterly results. Australia’s ASX 200 declined -0.2%, although ANZ jumped +4.5% on improved capital and asset quality trends, while Telstra (-3.2%) weighed after its earnings slightly missed consensus, offsetting a newly announced A$1 billion buyback. New Zealand’s NZX 50 gained +0.6% after the RBNZ’s survey showed two-year inflation expectations easing to 2.34%.
Oil slides as Trump pivots to economic pressure
WTI Crude fell -2.1% to US$81.49/bbl, Gold lost -1.0% to US$4,361.57/oz, and Iron Ore remained flat at US$95.09/MT.
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