Weekly Market Movers — Key Highlights
  • Global equities gained on strong AI-related technology earnings and semiconductor-sector strength.
  • TSMC reported a record 77% YoY increase in Q2 profit, reinforcing AI-driven demand.
  • ASML exceeded earnings expectations and raised its 2026 revenue outlook.
  • Uber launched a US$14.8 billion takeover bid for Delivery Hero.
  • The Bank of Korea raised its benchmark rate by 25 bps to 2.75%, its first hike in 3½ years.
  • U.S. retail sales rose 0.2% in June, while initial jobless claims fell to the lowest level since May.
  • Middle East tensions intensified as Iran and the U.S. exchanged further strikes, keeping geopolitical risks elevated.

Global equities advanced during the week, supported by robust AI-driven technology earnings, strong semiconductor-sector results from ASML and TSMC, ongoing M&A activity, and resilient investor risk appetite despite elevated geopolitical tensions.

Geopolitical developments remained a key focus for investors as tensions in the Middle East continued to escalate. Iran launched fresh strikes on U.S. facilities across the region, including its first direct attack in Syria, following a sixth consecutive night of U.S. strikes on Iranian military targets. The deterioration of the truce agreed last month has resulted in near-daily exchanges of attacks, disrupted shipping through the strategically important Strait of Hormuz, and renewed concerns over potential economic repercussions. 

Syria also reported intercepting a shipment of missiles, rockets and drones allegedly intended for Hezbollah at its border with Iraq. Earlier in the week, Iran declared the Strait of Hormuz a “red line” and threatened Gulf infrastructure, although President Trump later withdrew a proposal to impose a 20% transit fee on Hormuz cargo, opting instead to pursue trade and investment agreements with Gulf states.

Global Updates
  • The MSCI All Country World Index rose, supported by robust AI-driven technology earnings, strong semiconductor-sector results, and resilient investor risk appetite despite elevated geopolitical tensions.
  • The Bank of Korea increased its benchmark interest rate by 25 basis points to 2.75%, marking its first hike in three-and-a-half years. 
  • Japanese household inflation expectations rose, with the share anticipating higher prices reaching a record, supporting further rate-hike expectations.
  • Israeli chipmaker Tower Semiconductor announced a $3 billion investment in Japan to expand semiconductor manufacturing capacity, supported by $1 billion in government grants.
  • SoftBank CEO Masayoshi Son said AI will require $5 trillion in annual investment by 2040, dismissing bubble concerns.
  • TSMC reported a record 77% YoY increase in Q2 net profit to T$706.6 billion, exceeding market expectations and reinforcing AI-driven semiconductor demand.
  • ASML reported stronger-than-expected Q2 earnings and raised its 2026 revenue guidance for the second time this year, citing sustained AI-related demand.
  • Uber announced a takeover offer for Delivery Hero valuing the German company at $14.8 billion, aiming to build the largest food-delivery group outside China.
  • Iran warned it could target Gulf infrastructure if U.S. attacks continue, as Washington maintained strikes and a naval blockade.
  • A think tank estimated Britain loses £330 billion annually from weak growth, ageing demographics and poor health outcomes.
  • Syrian authorities intercepted a shipment of missiles, rockets and drones allegedly destined for Hezbollah at the Iraq border.
U.S. Equity
  • U.S. equities advanced during the week, buoyed by upbeat earnings, easing inflation concerns, and sustained enthusiasm for AI-driven growth themes.
  • U.S. retail sales rose 0.2% in June, supported by stronger motor vehicle and online purchases.
  • U.S. initial jobless claims fell by 8,000 to 208,000 in the week ended July 11, the lowest level since May and below economists’ expectations of 217,000.
  • U.S. pending home sales fell 5.4% in June to 72.5, as higher mortgage rates and elevated home prices curtailed buyer demand.
  • Burberry reported a 3% decline in Europe and Middle East sales as Middle East conflicts curtailed tourist spending, despite strong demand in the U.S. and China.
  • Elon Musk’s AI startup xAI sued a South Carolina man, alleging he misused its Grok AI platform to generate child sexual abuse material.
  • Crypto.com raised US$400 million from Citadel Securities at a US$20 billion valuation, highlighting growing institutional participation in digital assets.
  • The Writers Guild of America sued to block Paramount’s US$110 billion acquisition of Warner Bros. Discovery, citing risks to writers’ livelihoods and the broader entertainment industry.
  • A Republican-led U.S. House committee unveiled a US$95 billion spending framework, including US$73 billion in new defense and intelligence funding over the next decade.
  • President Trump abandoned a proposed 20% fee on cargo transiting the Strait of Hormuz, opting instead to pursue trade and investment agreements with Gulf states.
  • President Trump renewed allegations that China interfered in U.S. elections, raising concerns over U.S.-China relations ahead of a planned summit with President Xi Jinping.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index rose over the week.
  • The U.S. 10-year Treasury yield fell to 4.54% and the yield on the 2-year note fell to 4.13% over the week.
  • The U.S. Dollar Index weakened to 100.58 over the week.