Weekly Market Movers — Key Highlights
  • The eurozone economy grew 0.4% in Q2, while Spain and France also reported stronger economic activity.
  • Shell’s Q2 profit more than doubled to $9.84 billion, benefiting from elevated energy prices.
  • UBS, Deutsche Bank, and Standard Chartered posted strong quarterly earnings, supporting European financials.
  • The Federal Reserve kept rates unchanged at 3.50%-3.75%, while policy uncertainty remained elevated.
  • U.S. forces conducted strikes on Iranian military targets, keeping Middle East tensions in focus.

Global equities declined during the week, as investors assessed a combination of escalating geopolitical tensions, higher energy prices, and rising sovereign bond yields. Market sentiment remained cautious after U.S. forces carried out strikes on Iranian military targets and a drone attack hit a tanker near Egypt’s Damietta port, highlighting the risk of further disruptions to key energy and shipping corridors. At the same time, renewed trade-policy concerns and mixed corporate earnings tempered risk appetite, despite generally resilient economic data across Europe. President Trump’s meetings with Israeli Prime Minister Benjamin Netanyahu and Ukrainian President Volodymyr Zelenskiy also kept geopolitical developments firmly in focus throughout the week.

Global Updates
  • The MSCI All Country World ended lower as investors navigated heightened geopolitical uncertainty, renewed inflation concerns from higher oil prices, and tighter financial conditions driven by rising long-term bond yields.
  • The eurozone economy accelerated 0.4% in Q2 2026, surpassing forecasts and accelerating from stagnant growth in the prior quarter.
  • Spain’s economy expanded 0.7% quarter-on-quarter in Q2, exceeding forecasts and demonstrating continued economic resilience and momentum.
  • France’s economy grew 0.2% in Q2, supported by a strong rebound in exports and improved net trade.
  • Shell reported Q2 net profit of $9.84 billion, more than doubling year-over-year and exceeding expectations amid elevated energy prices and trading gains.
  • UBS posted a 17% increase in Q2 profit and announced plans for additional share buybacks, supporting European financial-sector sentiment.
  • Deutsche Bank delivered a 10% rise in quarterly profit, driven by strong investment-banking and trading revenues.
  • Standard Chartered exceeded earnings expectations and raised its full-year income target, aided by wealth-management and global-banking growth.
  • BBVA reported an 11.4% increase in net profit, reinforcing positive sentiment toward European banking earnings.
  • QatarEnergy purchased 33 U.S. LNG cargoes to maintain Asian customer supply after Hormuz-related export disruptions.
  • A drone strike on gas vessels at Egypt’s Damietta port heightened fears that the Middle East conflict could expand to the Suez Canal corridor.
  • President Trump held separate meetings with Netanyahu and Zelenskiy, concluding with positive discussions on regional security and Ukraine.
U.S. Equity
  • U.S. equities fell, as investors grappled with rising Treasury yields, persistent geopolitical tensions, renewed tariff measures, and mixed Big Tech earnings that intensified concerns over the returns from heavy AI-related capital spending.
  • The Federal Reserve left its policy rate unchanged at 3.50%-3.75%, while mixed messaging from Chair Kevin Warsh heightened interest-rate uncertainty.
  • The Federal Trade Commission filed a lawsuit against Hims & Hers, alleging improper sharing of health data and deceptive subscription practices.
  • Microsoft reported 43% Azure revenue growth and indicated its AI investments would continue generating positive cash flow.
  • Meta Platforms declined sharply after reporting a 91% drop in free cash flow amid elevated AI-related capital expenditures.
  • Alphabet remained under pressure after reporting negative free cash flow despite strong revenue growth, reinforcing concerns over AI infrastructure spending.
  • The Trump administration banned imports of Chinese robots and power inverters, citing national security and supply-chain concerns.
  • The Trump administration authorized the immediate release of $600 million in congressionally approved vaccine funding for developing countries after previously withholding the allocation.
Fixed Income
  • The Bloomberg U.S. Aggregate Bond Index fell over the week.
  • The U.S. 10-year Treasury yield rose to 4.67% and the yield on the 2-year note fell to 4.25% over the week.
  • The U.S. Dollar Index weakened to 100.06 over the week.