Aug. 18 (UPI) — Stocks fell on all three major U.S. indices Tuesday as investors were spooked by elevated bond yields and the prospect of higher oil prices as the war between the United States and Iran drags on without apparent resolution.
Tech stocks led the downturn as the Nasdaq Composite dropped by 1.3%, followed by losses on the S&P 500 (0.6%) and the Dow Jones Industrial Average (0.2%).
Most analysts put the blame for the markets’ poor showing on news that 30-year Treasury yield surpassed 5.3% for the first time since the global financial crisis in 2007, reflecting sagging demand from global buyers willing to underwrite sovereign U.S. debt.
Concerns over rampant government deficit spending and the United States’ burgeoning debt of nearly $40 trillion are pushing treasury yields higher, analysts noted.
The shorter 10-year Treasury, meanwhile, ended above 4.7%, compared to below 4% before the start of the Iran War in February.
Rising “T-bill” yields are considered a danger signal for the broader economy and consumer spending because they can have the knock-on effect of pushing up virtually all borrowing costs, from auto loans to mortgages.
The latter is being reflected in costlier mortgage rates. A 30-year, fixed-rate mortgage on Tuesday stood at 6.75% after ending last week at 6.69%.
Meanwhile, oil prices on Tuesday reached their highest level in more than two weeks after President Donald Trump threatened to “bomb” Oman if it interferes with his plans to open the strategic Strait of Hormuz.
The benchmark Brent crude futures traded around $91 per barrel, while U.S. West Texas Intermediate crude futures rose to $84 per barrel.
The International Energy Agency warned Wednesday of sharp drop in oil stocks amid renewed disruption to exports from Gulf producers with the Iran war seeing “lower volumes” transiting the seas to markets around the world. File photo by Olivier Matthys/EPA
Aug. 12 (UPI) — The International Energy Agency warned Wednesday of a sharp drop in global stocks oil amid renewed disruption to exports via the Hormuz Strait and Caspian Sea resulting in “lower volumes of oil” transiting the seas to markets around the world.
In its August Oil Market Report, the agency said measurable global oil inventories — strategic reserves, on tankers at sea — plunged by 69 million barrels in July to just under 7.9 million barrels, down from 410 million barrels per day at the start of the war at the end of February.
Onshore stocks declined by just 6 million barrels per day as the pace of IEA releases of its emergency stocks eased, even as China continued to draw down on its crude oil reserves.
“Although the market is projected to return to surplus towards the end of this year, risks remain substantial and the urgency of reopening the Strait has increased, as previously available inventory buffers are rapidly depleting,” the IEA said.
The IEA data comes two days after the U.S. Department of Energy said the country’s Strategic Petroleum Reserve had fallen to less than 300 million barrels in the previous week, its lowest level in 43 years — but still well above the 70 million barrel minimum for it to run as intended.
President Donald Trump ordered 172 million barrels to be released in March after exports from Gulf producers including Saudi Arabia Kuwait, Bahrain, and the UAE were severely curtailed by Iran closing the Strait of Hormuz.
Use of other routes to move oil and the drawing down of inventories, including China’s massive 1.4 billion barrel reserve which has seen a sharp drop in its oil imports, have so far helped ward off the damaging global oil shortage it was feared the closure of the Hormuz Strait would trigger.
The IEA also warned that the destruction of global demand for oil was escalating, driven by the continuing closure of the Strait of Hormuz and high fuel prices suppressing consumption, forecasting a 1.6 million barrels per day drop in demand in 2026, up from its previous estimate of 1 million barrels per day.
However, it said said the pace of market contraction would slow, down from a 4.9 million barrels per day decline in the second quarter to 2.8 million barrels per day drop in the third quarter, and return to growth in the final quarter, with expansion of global demand of 2.4 million barrels per day expected in 2027.
On the supply side, the IEA said overall production for 2026 would fall more sharply than demand, but would bounce back to outpace demand in 2027.
Production rose by 2.4 million barrels per day to 101.5 barrels per day in July, but remained well short of the 6.3 million barrels per day supply growth pace seen in July 2025, with 8.3 million barrels per day of Persian Gulf output “still shut in.”
“Renewed hostilities and maritime disruptions in July and early August undermined the recovery efforts, reducing projected third quarter 2026 oil supply by 1.7 million barrels per day compared with last month’s report.
“Global oil supply is now projected to decline by 4.3 million barrels per day on average in 2026 and rebound by 8.3 million barrels per day next year to 110.3 million barrels per day,” the IEA said.
European shares have started August 2026 in almost the opposite way to what their seasonal reputation would suggest.
The EURO STOXX 50 and DAX are hovering near record highs, while the CAC 40 remains close to its peak. Yet August has historically been one of Europe’s weakest months.
That contradiction raises a more interesting question than whether investors should simply “sell in August”.
The data suggests August is not consistently a bad month. Instead, its poor reputation has been shaped by a small number of extraordinary market shocks.
European shares have started August 2026 in almost the opposite way to what their seasonal reputation would suggest.
The EURO STOXX 50 and DAX are hovering near record highs, while the CAC 40 remains close to its peak. Yet August has historically been one of Europe’s weakest months.
That contradiction raises a more interesting question than whether investors should simply “sell in August”.
The data suggests August is not consistently a bad month. Instead, its poor reputation has been shaped by a small number of extraordinary market shocks.
Germany’s DAX, which tracks the 40 largest companies on the Frankfurt exchange, tells the same story going back to 1970.
August has averaged a loss of 1.03%. September has averaged a loss of 1.64%.
France’s CAC 40, which tracks the 40 biggest companies in Paris, has data going back to 1988. August has averaged a loss of 1.22%. September has averaged a loss of 1.38%.
Three different countries, three different stretches of history — and exactly the same ranking. September worst, August second.
Yet August 2026 has looked nothing like that.
On 11 August, the EURO STOXX 50 closed at an all-time high above 6,560 points, up roughly 13% since the start of the year. The DAX moved above 26,450 for the first time, while the CAC 40 finished around 8,740 points.
So who is right — the calendar or the market?
The short answer: the calendar has a much weaker case than it appears.
An average is only useful when the numbers around it are relatively similar.
Picture five people walking into a room. Four earn €30,000 a year, one earns €1 million. The average income in that room suddenly looks far higher than what most people actually take home.
August equity returns have a similar problem. A handful of extreme crashes drag the long-term average sharply lower.
That is where the median becomes useful. It is simply the middle observation once every August return is ranked from worst to best, so half the years sit below it and half above — a better guide to what a typical August actually looks like.
For the EURO STOXX 50, the median August return is -0.19%, a very different picture from the -1.42% average. The typical August has been close to flat.
Most of the damage comes from five extraordinary episodes.
In August 1998, the EURO STOXX index fell 14.44% as Russia defaulted on domestic debt and devalued the rouble.
In August 1990, it dropped 13.82% after Iraq invaded Kuwait. August 2011 brought a 13.79% fall as the eurozone debt crisis intensified around Italy and Spain. In August 1997, the index lost 9.99% as the Asian financial crisis spread across the region, and in August 2015 it fell 9.19% when China devalued the yuan.
These were not ordinary corrections. They were global shocks that happened to land in August.
Strip out those five years and the EURO STOXX 50’s average August return flips from -1.42% to +0.17%. Five years out of 39 turn a seemingly weak month into a slightly positive one.
The explanation may have less to do with the month itself than with how markets function during the summer.
Europe effectively goes on holiday in August. Trading desks thin out and fewer investors are actively setting prices. That does not cause a sell-off on its own, but it can make markets more sensitive once one begins.
There are also fewer scheduled monetary-policy decisions. The European Central Bank’s latest meeting was in July, with its next scheduled decision not due until September.
The US Federal Reserve follows a similar summer gap, leaving markets with fewer major policy events to anchor expectations at precisely the moment liquidity is thinnest.
Then there is Jackson Hole. The Federal Reserve’s annual conference in Wyoming, held later in August, can become a major market event in its own right, particularly when investors are hunting for clues on interest rates.
This year’s gathering carries extra weight: it is Kevin Warsh’s first Jackson Hole address as Fed chair.
August therefore combines three potentially volatile ingredients: thinner liquidity, fewer scheduled policy events, and the possibility of a significant central bank signal arriving late in the month.
The historical pattern is only useful if investors understand what has changed.
European equities entered August at or near record highs, underpinned by strong earnings expectations. Reuters reported that analysts had raised expectations for second-quarter earnings growth across the STOXX 600 to almost 21%, up from 12.5% in May — giving markets a fundamentally stronger backdrop than the historical average would suggest.
But there is another side to the ledger. The Middle East energy shock remains a risk for Europe: higher energy prices could push inflation back up while squeezing consumers and corporate margins at the same time.
Eurozone inflation eased to 2.8% in June, down from 3.2% in May, though a fresh energy shock could complicate the path back to the European Central Bank’s 2% target.
That leaves an unusual setup heading into the rest of the month.
The historical record does not say European stocks must fall this month. In fact, the EURO STOXX 50 and DAX have both finished August higher almost half the time.
What history does show is more subtle: August is not necessarily Europe’s seasonal crash month. It is a month in which rare shocks have historically produced unusually large losses. That distinction matters in 2026.
Investors do not need to predict whether August will end higher or lower. The more useful question is whether markets, having just reached record highs, are sufficiently prepared for an unexpected shock arriving while liquidity is thin.
That is what the August pattern is really warning about — not a calendar effect, but a vulnerability.
FabrikaCr
HSBC remained bullish on global equities, saying concerns around AI, rates, and geopolitics were increasingly reflected in market prices while fundamentals continue to improve.
“We remain comfortably bullish on global equities,” Alastair Pinder, HSBC’s head of EM and global equity strategy, and Pankaj
European equities keep reaching new highs.
The pan-European STOXX Europe 600 climbed to another record on Wednesday, closing at around 657 points after touching a fresh intraday high and extending its winning streak to a third consecutive session.
The blue-chip EURO STOXX 50, which tracks the euro area’s largest listed companies, also set a new all-time high during the day. The broader benchmark has now gained about 10% since the start of 2026.
The rally is broad-based. Germany’s DAX broke above 26,100 for the first time. France’s CAC 40 climbed to a record 8,700, while Italy’s FTSE MIB reached an unprecedented 53,540.
Yet the companies leading Europe’s bull market bear little resemblance to the household names that have long defined the continent’s equity story.
Luxury groups are nowhere to be seen. Neither are the pharmaceutical giants that traditionally anchor European portfolios. Even banks, despite a strong year, have largely been overtaken.
Instead, the biggest winners of 2026 are the companies building the infrastructure behind the artificial intelligence boom: manufacturers of semiconductor wafers, chip-testing equipment, advanced substrates and industrial technology.
Europe’s stock market is no longer being led by brands consumers recognise. It is increasingly being powered by the suppliers enabling the world’s AI capital-spending race.
Several forces have come together to fuel the rally.
The immediate catalyst was geopolitical.
Reports that Washington and Tehran are moving towards a new agreement to reopen the Strait of Hormuz pushed oil prices sharply lower, easing inflation fears and reducing cost pressures for Europe’s manufacturers and airlines.
The economic backdrop has also surprised investors.
Eurostat’s preliminary estimate showed the eurozone economy expanded 0.4% quarter-on-quarter in the second quarter, double economists’ expectations, following flat growth in the first quarter. Annual growth accelerated to 1.0%.
Pantheon Macroeconomics’ chief eurozone economist Claus Vistesen said the euro area “comfortably beat expectations yesterday, posting GDP growth of 0.4% quarter-to-quarter in Q2, after upwardly revised zero growth in Q1. This was 0.2pp above the consensus and 0.1pp above our forecast.”
Corporate earnings have added another pillar of support.
Second-quarter reporting has generally exceeded expectations, while global enthusiasm for artificial intelligence infrastructure has transformed a small group of European technology suppliers into some of the world’s best-performing stocks.
These are the 10 best-performing European stocks with a market capitalisation of €1 billion or more, ranked by share price performance through 5 August.
Europe’s steel champion has quietly become one of this year’s biggest industrial winners.
Shares of ArcelorMittal have gained 65.3% since the start of 2026, making the company the tenth-best performer in the STOXX Europe 600 through 5 August.
The Luxembourg-based group reported revenue of $16.5 billion in the second quarter and underlying operating profit of $2.1 billion, its strongest performance in Europe for three years.
Profitability improved as new EU import quotas reduced competition from cheaper foreign steel, while the company continued buying back its own shares, returning more cash to investors.
Higher interest rates and resilient economic activity across Central and Eastern Europe have helped the Austrian lender outperform most of its European peers. Raiffeisen Bank International shares have climbed 67.6% year-to-date through 5 August.
First-half profit excluding Russia rose 25% to €708 million, prompting management to raise its full-year forecast for net interest income to €4.4–4.5 billion.
Investors have also welcomed stronger capital levels and easing concerns over the bank’s Eastern European operations.
The Italian engineering group has benefited from the global revival in offshore energy investment.
Saipem stock is up 75.8% in 2026 through 5 August, extending one of the strongest rallies among European industrial companies.
First-half revenue increased to €7.35 billion, while underlying operating profit rose 9.4% to €836 million. Its order book expanded to a record €29.9 billion, giving the company years of work already secured despite trimming guidance to reflect around €70 million of conflict-related costs.
The Franco-Italian chipmaker has emerged as one of Europe’s biggest beneficiaries of renewed enthusiasm for artificial intelligence infrastructure.
Shares of STMicroelectronics have more than doubled in 2026, rising 105.7%.
Second-quarter revenue climbed 26% to $3.49 billion, while the company returned to an operating profit after several difficult quarters. Management forecast around $3.7 billion in revenue for the current quarter, signalling that the semiconductor downturn is gradually easing.
The German company manufactures highly specialised equipment used to produce advanced semiconductors.
AIXTRON shares have surged 121% since the beginning of the year, placing the company among Europe’s biggest AI winners.
Second-quarter orders jumped 81% to €214.5 million, driven by booming demand for photonics and power-chip manufacturing equipment. Management reaffirmed its full-year revenue forecast of €560 million.
Few investors know Technoprobe, yet almost every advanced semiconductor relies on its testing technology before reaching customers.
Technoprobe has rallied 135.1% in 2026 through 5 August, making it one of Europe’s strongest-performing technology stocks.
Following a record first quarter with €187 million in revenue, management raised its full-year sales forecast to between €950 million and €1.05 billion, reflecting growing demand for AI-related chip testing equipment.
The Austrian sensor and photonics specialist has staged one of the European market’s biggest turnarounds.
ams-OSRAM stock has gained 136.2% since January.
Second-quarter revenue reached €805 million, at the top end of company guidance, while management continued making progress towards commercial production of its microLED technology for augmented-reality glasses.
Investors also welcomed the sale of its non-core sensor division to Infineon, strengthening the company’s balance sheet.
The oil producer is the only energy company among Europe’s top-performing stocks this year.
Shares of Tullow Oil have advanced 136.4% year-to-date through 5 August.
Management recently increased its forecast for 2026 free cash flow to between $170 million and $250 million, more than doubling its previous guidance after benefiting from stronger oil prices during the first half of the year.
Ironically, the stock fell on Wednesday as hopes of easing tensions in the Middle East pushed crude prices lower.
Austria’s AT&S manufactures the advanced substrates that connect artificial intelligence processors with memory chips inside high-performance servers.
AT&S shares have soared 343.5% in 2026, making the company Europe’s second-best-performing stock.
When reporting quarterly results on 4 August, management forecast 30%–35% revenue growth this year, driven by continued investment in AI data centres.
Despite the spectacular rally, the shares remain about 40% below the record highs reached in June.
No European company has benefited more from the artificial intelligence investment boom than France’s Soitec.
Soitec shares have skyrocketed 414.5% since the start of 2026 through 5 August, making the company the best-performing constituent of the STOXX Europe 600.
The semiconductor materials specialist reported annual revenue of €592 million, down 34% as the industry worked through excess inventories. However, investors focused on signs that the recovery had begun.
Revenue from its fast-growing photonics business exceeded $100 million for the first time, while free cash flow reached €63 million, far ahead of analysts’ expectations.
Management expects revenue to return to growth during the current financial year, reinforcing confidence that Soitec is becoming one of Europe’s biggest beneficiaries of the global AI infrastructure build-out.
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Trading was temporarily halted as the Kospi dropped to its lowest level since April after shares in chipmakers Samsung Electronics and SK Hynix fell sharply.
The Kospi was down 10.5% at 6,051.19 in overnight trading. Samsung’s shares tumbled 12%, while SK Hynix’s shares were down 12.7%.
A big factor driving the selling of AI-related shares, analysts said, is the expectation that competition from Chinese AI start-ups and chipmakers might undermine gains for global companies whose shares have skyrocketed due to the AI frenzy.
A 466% jump in the price of Chinese chipmaker CXMT on its trading debut Monday has underscored such concerns. CXMT raised at least $8.6 billion (around €7.6bn) in its initial public offering on Shanghai’s tech-oriented STAR exchange.
Most other Asian markets also fell, with Tokyo’s Nikkei 225 down 4% at 62,350.18. The Taiex in Taiwan skidded 3.9%. Hong Kong’s Hang Seng edged 0.1% lower, to 25,178.21, while the Shanghai Composite index lost 1% to 3,820.52.
In Australia, the S&P/ASX 200 bucked the regional trend, gaining 0.6% to 8,944.40.
Elsewhere, oil prices extended their declines as US and Iran refrained from attacks for a third straight day.
Officials in the Middle East said mediators had made progress in getting the two sides back to negotiations.
Brent crude, the international standard, fell 0.8% to $85.16 a barrel. US benchmark crude oil lost 0.9% to $81.86 a barrel.
Stocks on Wall Street drifted to a mixed close Monday. The S&P 500 gained less than 0.1% and the Dow Jones Industrial Average rose 0.5%. The Nasdaq composite fell 0.2% for its fourth straight loss.
Additional sources • AP
These large-cap stocks combine A-rated profitability with low forward P/E ratios
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BofA sees August setting up as tough for stocks; dollar, gold favored
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As the Q2 earnings season gets underway, investors are closely watching consumer staples companies for insights into consumer spending, pricing power and demand for everyday essentials.
Businesses with consistently strong profitability are expected to remain in focus as earnings reports
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The benchmark S&P 500 (SP500) has posted a respectable 10.1% gain year-to-date, yet a select cohort of 15 stocks within the index has delivered triple-digit returns of 100% or more, significantly influencing the benchmark’s performance.
These standout performers are concentrated
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European shares were little changed on Friday but remained on track for their first weekly decline in five weeks as weakness in technology stocks and renewed tensions between the United States and Iran dampened investor sentiment.
The pan-European STOXX 600 index edged 0.1% lower to 640.28 points by 0849 GMT, with losses in technology companies offsetting gains in most other sectors.
The benchmark index is poised to end a four-week winning streak after investors reassessed lofty valuations in artificial intelligence-related stocks while monitoring escalating geopolitical risks in the Middle East.
The technology sector fell 1.3% on Friday as investors continued taking profits following months of strong gains driven by enthusiasm for artificial intelligence.
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The sector also remained focused on the closely watched U.S. stock market debut of South Korean memory chip maker SK Hynix after its $26.5 billion share sale.
Among European chip-related stocks:
“The large swings we’re seeing in technology stocks suggest investors remain under stress amid elevated valuations,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
“Attention is now turning to SK Hynix’s U.S. debut, which could help gauge broader appetite for AI-related stocks and influence sentiment across the sector.”
Investor caution also reflected renewed uncertainty in the Middle East after Iranian forces targeted U.S. military infrastructure in Gulf states following fresh U.S. strikes on Iran.
The latest escalation further weakened the fragile three-week-old ceasefire and renewed concerns over potential disruptions to shipping through the Strait of Hormuz, one of the world’s most important energy trade routes.
Higher oil prices and possible supply disruptions have raised concerns about inflation, particularly in energy-importing Europe, where markets are closely watching the implications for economic growth and European Central Bank policy.
Despite weakness in technology, most sectors in the STOXX 600 traded higher.
Telecommunications stocks led gains, rising 1.4%, after Vodafone surged nearly 11%.
The rally followed an announcement by UAE telecoms group e& that it would sell its stake in Vodafone to the family investment group of French billionaire Xavier Niel.
Travel and leisure stocks gained 0.8%, supported by strength in airline shares.
British budget carrier EasyJet jumped 14% after agreeing in principle to a £5.7 billion ($7.65 billion) takeover approach from Apollo Global.
European steelmakers outperformed after J.P. Morgan adopted a more positive view of the sector.
The investment bank upgraded ArcelorMittal to “neutral” from “underweight,” lifting its shares 5%.
Austria’s Voestalpine climbed 6%, while Germany’s Salzgitter surged 10.3% after both companies received double upgrades to “overweight.”
Wealth manager St. James’s Place was among the session’s biggest losers, falling 8.5% after reports that Sovereign Wealth, one of its largest partner firms, was in talks to join a Swedish wealth management group.
Markets are expected to remain focused on two key drivers in the coming days: whether the renewed U.S.-Iran hostilities escalate further and whether SK Hynix’s U.S. debut reinforces or weakens investor confidence in the AI-driven technology rally.
With geopolitical risks pushing oil prices higher and technology valuations facing increased scrutiny, analysts expect volatility across European equities to remain elevated in the near term.
With information from Reuters.
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Wall Street ended the holiday-shortened week higher as investors looked past softer-than-expected labor market data and increased bets that the Federal Reserve could cut interest rates before year-end.
The June jobs report showed the U.S. added just 57,000 jobs, missing expectations, while the
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Stock markets across Asia mostly advanced on Friday, taking their cue from a fresh record close for the Dow on Wall Street, as some of the AI-linked shares battered in this week’s sell-off found their feet again while others kept falling.
The volatility was calmer than the heavy selling seen a day earlier, when worries about stretched technology valuations sent semiconductor shares tumbling across the region.
At the time of writing, South Korea’s Kospi led the bounce, climbing over 4% to recoup part of the nearly 8% plunge it suffered on Thursday. Samsung Electronics, the country’s largest company and a major chipmaker, jumped 7%, while smaller memory rival SK Hynix rose 4.9%.
In Tokyo, the Nikkei 225 added 1%, helped by a 6.6% leap in memory maker Kioxia, although chip-equipment supplier Tokyo Electron slipped 2.5%.
Elsewhere, Hong Kong’s Hang Seng gained 1.7% and the Shanghai Composite rose 0.7%, while Australia’s S&P/ASX 200 advanced 1.3% and Taiwan’s Taiex bucked the trend, easing 0.6%.
As for European markets, both the Euro Stoxx 50 and the broader pan-European Stoxx 600 opened within a 0.3% range.
The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40 and Italy’s FTSE MI, all traded between 0.1% and 0.3% higher.
Spain’s IBEX 35taly’s FTSE MIB led the pack and rose about 0.4%.
US stocks were mixed on Thursday, but the Dow still managed a fresh peak, rising 1.1% to 52,900.
The broader S&P 500 ended virtually flat despite seven in ten of its members gaining, held back by another retreat in chip stocks, while the technology-heavy Nasdaq fell 0.8%.
Sentiment drew support from data showing US employers added 57,000 jobs last month, well below the 100,000 forecast and a slowdown on May.
A softer labour market could ease inflation pressure and, with oil back below its pre-war levels, may lessen the case for the Federal Reserve to raise interest rates repeatedly this year, an outcome investors would welcome.
Crypto-linked shares also firmed as Bitcoin rose about 2%, lifting Robinhood and Coinbase alongside it.
Still, the AI trade remained under strain.
Micron gave up an early gain to fall 5.5%, a day after a 10.6% slump, while Lam Research sank more than 10% and Nvidia, now worth close to $4.7 trillion, edged 1.4% lower.
On oil, Brent crude, the international benchmark, rose 1% to around $73 a barrel early Friday, while US crude added 0.5% to about $69, with prices still sitting below where they were before the Iran war began in late February.
Additional sources • AP
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Most Asian stock markets dropped on Thursday, dragged down by a wave of selling in semiconductor shares, as European bourses made a subdued start and Wall Street looked set to open in the red before the release of key US employment figures.
The pullback centred on the technology sector, where investors retreated from the chip stocks that have powered much of this year’s rally, amid growing unease that the vast sums Big Tech is spending on AI could leave the market awash with supply.
South Korea’s Kospi bore the worst of it, tumbling around 5% as its heavyweight chipmakers slid. Memory specialist SK Hynix lost close to 8% and Samsung Electronics fell more than 6%.
In Tokyo, the Nikkei 225 shed about 1.5%, with chip-equipment maker Tokyo Electron down around 5.6%, while Taiwan’s Taiex slipped 1.1% as TSMC, the world’s largest contract chipmaker, gave up 1.8%.
The falls followed a rough session for chip stocks on Wall Street this Wednesday, where Micron Technology dropped more than 10% and Intel sank around 9%.
The moves stand in sharp contrast to a stellar year for Asian tech, with the Kospi and the Nikkei still up roughly 85% and 34% respectively in 2026.
On the other hand, Hong Kong’s Hang Seng rose about 0.8%, lifted by an 8.7% jump in electric-vehicle maker BYD after it reported a second straight monthly rise in sales, while India’s Sensex added 0.5%.
In Europe, markets opened flat as both the Euro Stoxx 50 and the broader pan-European Stoxx 600 traded within a 1% range at the start of Thursday’s session.
The UK’s FTSE 100, Germany’s DAX 30, France’s CAC 40 and Spain’s IBEX 35, all traded between 0.1% and 0.3% higher.
Italy’s FTSE MIB led the pack and rose about 0.4%.
Crude prices fell again, trading below where they sat before the Iran war began in late February, as hopes grew that supplies through the Strait of Hormuz will steadily recover.
Brent crude, the international standard, eased around 1% to about $70.89 a barrel while WTI, the US benchmark, dropped 3% to roughly $69.
Attention now turns to the US, where stock futures edged lower ahead of the June employment report, brought forward a day because of Friday’s Independence Day.
Economists polled by Dow Jones expect around 115,000 jobs were added last month.
The figure carries extra weight under the new Federal Reserve chair, Kevin Warsh, with investors wary that a strong reading could harden the case for keeping interest rates higher for longer.
According to economists at Capital Economics, demand for AI may keep growing but at a slower pace than many expect, a caution that helped sour sentiment towards the sector.
Additional sources • AP
Chinese stocks advanced after fresh manufacturing data pointed to sustained factory expansion and President Xi Jinping reaffirmed his commitment to promoting high-quality economic development. The upbeat market reaction reflected growing optimism over the resilience of China’s industrial sector and the continued strength of technology and innovation-driven industries.
However, investor sentiment remains tempered by concerns over uneven economic growth, with persistent weakness in consumer confidence, the labour market and the property sector continuing to weigh on the broader recovery.
China’s manufacturing sector expanded for a seventh consecutive month, marking its strongest quarterly performance since late 2020. The data reinforced expectations that industrial production remains a key pillar of economic growth despite ongoing challenges in other parts of the economy.
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The stronger-than-expected factory activity provided investors with reassurance that export-oriented manufacturing and industrial output continue to support China’s recovery.
President Xi Jinping renewed his pledge to pursue high-quality development, signalling that Beijing remains committed to an economic strategy centred on technological innovation, industrial upgrading and sustainable long-term growth.
The remarks reinforced expectations that policymakers will continue prioritising advanced manufacturing, strategic industries and innovation rather than relying solely on traditional stimulus measures to support the economy.
Technology-related stocks led gains as investors increased exposure to sectors expected to benefit from China’s industrial and technological ambitions. Chipmaking equipment, biotechnology and software companies posted strong advances, reflecting continued confidence in industries viewed as central to China’s long-term economic transformation.
The rally highlights investors’ preference for sectors with stronger earnings potential and policy support.
Alongside technology stocks, gains also spread to agriculture and property-related shares, suggesting investor optimism is gradually broadening beyond high-growth industries.
Although these sectors continue to face structural challenges, their recovery indicates improving market sentiment and expectations that policy support could help stabilise weaker areas of the economy.
Despite encouraging manufacturing data, investors remain cautious about China’s broader economic outlook. Consumer spending continues to be constrained by weak confidence, labour market pressures and the prolonged downturn in the property sector, creating an uneven recovery across different parts of the economy.
The divergence between strong industrial performance and softer domestic demand continues to shape investment strategies and policy expectations.
Chinese markets are likely to remain supported by resilient manufacturing activity, continued policy backing for innovation and expectations of further measures to sustain economic growth. However, the durability of the rally will depend on whether improvements in industrial production translate into stronger domestic consumption and broader economic recovery.
Investors will closely monitor upcoming economic data and government policy announcements for signs that Beijing can address persistent weaknesses in the property market, employment and consumer confidence while maintaining momentum in high-value manufacturing and technology sectors.
With information from Reuters.
Stocks eye fresh highs as U.S.-Iran talks resume, oil rises on Hormuz tensions
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Here’s a quick look at the stocks that are seeing gap-up moves before the bell Friday.
Stock index futures (SPX) were mixed before the bell as a renewed sell-off in technology stocks and mounting concerns over elevated AI-related valuations
Large- and mega-cap U.S. REIT stocks with market capitalizations from $10B to more than $200B, have generally held up better than their smaller peers, but several major names still carry weak Momentum Grades between D and C-.
Telecom tower REITs
The value of Iran’s currency has risen by more than 15 percent against the US dollar, and its stock market has shattered records in the wake of the memorandum of understanding agreed between the United States and Iran on Sunday.
However, Iranians suffering for years from extremely high inflation and a plunging rial have found little economic relief as the prices of basic goods, such as food, remain high despite the diplomatic breakthrough.
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The Iranian economy has suffered due to decades of US sanctions. The economic crisis was exacerbated after the US and Israel launched a war against Iran on February 28. As subsequent US naval blockade on Iranian ports further added to the misery of Iranians.
In Ferdowsi Street, the beating heart of Tehran’s foreign exchange market, the scene on Thursday was a stark departure from the panic of recent months. Exchange office boards flashed rapidly changing numbers as foreign currencies, led by the dollar, took a sharp dive.
“We closed our doors just hours before the official announcement of the US-Iran understanding at a rate of 1.8 million rials to the dollar,” Amir, a 35-year-old exchange office worker who asked to remain anonymous, told Al Jazeera. “Now it has fallen to 1.54 million rials, and we expect further declines.”
Amir noted a significant increase in sales volumes although buyers remained scarce as many anticipated the rial would strengthen further, potentially dropping to 1.4 million to the dollar or lower.
The recent gains mark a sharp turnaround. After the outbreak of the war, the exchange rate jumped to a historic peak of 1.9 million rials (190,000 tomans) to the dollar in March before settling at about 1.685 million just before recent attacks carried out despite a ceasefire.
Despite the rial’s recovery, a walk through Tehran’s grocery stores reveals a starkly different reality. For Iranians grappling with the economic fallout of crippling sanctions and the US naval blockade, the diplomatic thaw has yet to lower the cost of living.
Reza, a 42-year-old Tehran resident, told Al Jazeera that prices for daily staples like milk, cheese, cooking oil and flour remain unchanged. “They say the dollar dropped, but my shopping basket costs the same as last week,” he said. “This means the agreement hasn’t reached our pockets yet.”
From behind the cash register, 55-year-old shop owner Ramin echoed his customer’s frustration. He explained that while the government continues to distribute subsidised goods like bread, the fluctuations of the free-market dollar do not immediately impact basic food prices.
The value of the dollar on the free market varies from the official exchange rate.
Pointing to a shelf of imported goods, another shopkeeper named Karim noted that items like shampoo, toothpaste and laundry detergent are still locked at inflated prices.
“Distributors say they bought these goods two months ago at the old dollar rates,” Karim explained. “Prices will remain high until the old stock runs out and new goods enter at the lower exchange rates.” He estimated it would take at least two weeks for the market to adjust, meaning Iranians will continue to face compounding inflation in the interim.
While Main Street struggles, Tehran’s stock market is experiencing an unprecedented boom amid expectations of improved economic conditions. The trading floor has been awash in green since the initial leaks of the Washington-Tehran agreement emerged.
On Monday, the main index jumped by a record-breaking 161,000 points in a single session, marking the highest-ever influx of cash from individual investors.
By Tuesday, the market continued its staggering ascent, climbing another 112,000 points to cross the psychological barrier of 5 million, ultimately settling at a historic high of 5.1 million.
Saeed, a 40-year-old investor, called it a “historic day”. He noted that investors are rushing to buy shares in the energy and petrochemical sectors, betting heavily on the resumption of exports and the reopening of global markets.
However, Saeed remained cautiously optimistic. “The stock market is often driven by rumours,” he warned. “I don’t want to repeat the experience of the 2015 nuclear deal when the market soared and then collapsed after the US withdrawal.”
He was referring to US President Donald Trump’s 2018 withdrawal from the agreement, under which Iran agreed to restrictions on its nuclear programme in exchange for sanctions relief.
The wait-and-see approach in effect has paralysed other sectors of the economy. In central Tehran’s electronics hubs, 38-year-old shop owner Reza reported that while the prices of imported appliances have dropped in tandem with the dollar, sales have stalled because customers are holding out for steeper discounts.
A similar freeze has gripped the housing market. Nasrin, a 36-year-old real estate agent in northern Tehran, observed that a recent price surge that accompanied the initial truce has now given way to stagnation. Many property owners are clinging to inflated prices, seemingly unaware that the market dynamics have shifted, bringing property transactions to a virtual standstill.
For macroeconomic experts, the mixed market signals are entirely expected. Hossein Selahvarzi, the former head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, cautioned that the new agreement is “not a magic wand” capable of instantly fixing years of structural issues in the economy.
While the war severely damaged Iran’s infrastructure, Selahvarzi emphasised that the roots of the country’s economic malaise were firmly planted well before the bombing began.
“War is the enemy of investment, production, trade and public welfare,” Selahvarzi told Al Jazeera. He warned against the analytical mistake of believing that a peace memorandum alone would revive the economy.
“Ending the military confrontation does not necessarily mean the beginning of economic prosperity,” he said, stressing that restoring stability to the business environment remains the country’s most urgent priority.
“What we have before us is a limited and fragile opportunity to correct course and rebuild the economy, and this opportunity could be lost quickly if not managed correctly.”
Employees celebrate after the closing bell in a trading room of Woori Bank in Seoul on Thursday, as the benchmark Korea Composite Stock Price Index surpassed a historic landmark of 9,000 points. Photo by Yonhap
Seoul stocks surged by more than 2 percent past another historic landmark, surpassing the 9,000-point level for the first time in history, as investors bet on chipmakers in the face of a hawkish stance by the Federal Reserve and Iran uncertainty.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 199.6 points, or 2.25 percent, to 9,063.84, after rising as high as 9,106.07.
The KOSPI continued its winning streak for the sixth consecutive session on the back of optimism over artificial intelligence (AI) and related sectors.
Trade volume was heavy at 505.9 million shares worth 49.9 trillion won (US$32.7 billion). Foreigners were net buyers, snatching up 1.3 trillion won, while retail and institutional investors net sold a combined 1.2 trillion won.
Losers outnumbered gainers 109 to 788.
The index bucked overnight losses on Wall Street caused by Fed policymakers’ remarks that a rate hike would be inevitable to tame inflation.
The continued rally was led by the country’s two major chipmakers, Samsung Electronics and SK hynix, said analyst Kim Seok-hwan from Mirae Asset Securities.
“Investors are anticipating that semiconductor companies could gain better bargaining power due to a sustained supply bottleneck,” the analyst said.
A risk appetite was also revived on anticipation the U.S.-Iran war is nearing its end. The United States has said Iran has agreed to reopen the Strait of Hormuz, a key oil shipping route, and revealed a signed memorandum of understanding on ending the war.
The rate freeze from the Fed, the fourth consecutive on-hold decision, appeared to have a limited impact on investor sentiment.
Market top cap Samsung Electronics rose 4.62 percent to 362,500 won, while its rival SK hynix jumped 6.51 percent to 2,685,000 won.
Non-semiconductor sectors lost ground.
Defense giant Hanwha Aerospace fell 2.86 percent to 1,189,000 won, ship builder HD Hyundai Heavy Industries retreated 3.25 percent to 684,000 won, and major financial firm KB Financial inched down 0.55 percent to 163,100 won.
The Korean won was quoted at 1,527.1 won against the U.S. dollar, down 13.7 won from the previous session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 4 basis points to 3.75 percent, and the return on the benchmark five-year government bonds added 5.2 basis points to 3.949 percent.
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