Category: Market Summary

Semiconductor stocks came under widespread selling pressure on Monday after SK Hynix posted the largest single-day decline in its history, prompting investors to lock in gains following the company’s recent Nasdaq debut while renewed geopolitical tensions added to market caution.

The weakness spread from Asian markets into Europe and U.S. premarket trading, highlighting growing concerns over lofty valuations in AI-related technology shares despite continued strength in long-term demand.

SK Hynix Sparks Global Selloff

SK Hynix shares slumped more than 15% in South Korea, setting a new record for the company’s biggest daily decline.

The move followed a strong rally that saw the stock more than triple this year ahead of last week’s U.S. listing, encouraging investors to take profits.

Samsung Electronics (USOTC:SSNHZ) also traded lower, helping push the KOSPI index down 9% and triggering a temporary 20-minute trading halt.

European Semiconductor Sector Weakens

Selling pressure extended across European technology stocks shortly after markets opened.

ASMI (EU:ASM), ASML (EU:ASML) and Besi (EU:BESI) each fell between 1% and 2%, while STMicroelectronics (EU:STMPA) slipped around 1%.

Infineon (TG:IFX) was among Germany’s weakest performers, declining roughly 2%.

U.S. Chip Stocks Set for Lower Open

U.S. semiconductor names also pointed to a weaker start.

Western Digital (NASDAQ:WDC), Micron (NASDAQ:MU), SanDisk (NASDAQ:SNDK), Seagate (NASDAQ:STX), AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) all traded sharply lower ahead of the opening bell.

Strong AI Outlook Meets Profit-Taking

SK Hynix raised more than $26 billion through its American Depositary Receipt offering last week, with the shares priced at $149 before opening at $170 and ending their first trading session up 12.8%.

“The current memory upcycle is tracking substantially stronger than expected, but our base case continues to assume normalisation in cycle dynamics, limiting upside at current levels,” said Lorraine Tan, a director at Morningstar.

Although demand for high-bandwidth memory chips used in AI data centres remains robust, Monday’s decline suggests investors are becoming increasingly cautious after the sector’s remarkable gains this year.

Global markets opened the week cautiously as renewed conflict between the United States and Iran sent crude prices sharply higher, pressured equity futures and shifted investor focus toward a crucial week of second-quarter earnings.

At the same time, heavy selling in Asian semiconductor stocks has sparked debate over whether enthusiasm for artificial intelligence shares is beginning to cool, even as demand for advanced chips remains strong.

Investors Respond to Geopolitical Risks

U.S. equity futures traded mixed after another exchange of military strikes between Washington and Tehran heightened uncertainty over the global economic outlook.

At 04:53 ET (08:53 GMT), S&P 500 futures were down 0.3%, Nasdaq 100 futures had fallen 1%, while Dow Jones futures edged up 0.03%.

Technology stocks looked set to underperform following sharp losses among Asian chipmakers, while traders also prepared for a wave of quarterly earnings reports expected to provide fresh insight into corporate investment and AI-related spending.

Hormuz Uncertainty Keeps Markets on Edge

Attention remains focused on the Strait of Hormuz after conflicting statements from the United States and Iran regarding access to the strategic shipping route.

U.S. Central Command said it had launched additional strikes against Iranian targets to reduce threats to commercial shipping, while President Donald Trump maintained that the passage remained open.

Iran, however, continued to insist that the Strait had been closed.

With roughly 20% of the world’s seaborne oil moving through the waterway, investors remain alert to any disruption that could intensify inflationary pressures and weigh on global growth.

Oil Prices Extend Their Advance

Energy markets continued to rally as geopolitical risks mounted.

Brent crude gained 4.8% to $79.65 a barrel, while West Texas Intermediate rose 5% to $74.98 after both benchmarks had already posted strong gains during the previous week.

Higher oil prices are generally supportive for energy producers but can increase costs for industries such as aviation, logistics and consumer discretionary businesses through higher fuel and transportation expenses.

Semiconductor Sector Faces Profit-Taking

Asian semiconductor stocks came under pressure, led by a near-14% decline in SK Hynix shares despite the company’s successful Nasdaq debut.

The weakness pushed South Korea’s KOSPI index down more than 5%, temporarily triggering a trading halt.

The decline appeared to reflect investor profit-taking ahead of earnings season rather than any deterioration in demand for AI hardware.

Meanwhile, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) continued to demonstrate strong underlying demand, reporting a 36% year-on-year increase in second-quarter revenue to T$1.27 trillion.

Corporate Results Become the Main Focus

While geopolitical developments continue to dominate headlines, investors are increasingly turning their attention to second-quarter earnings.

The upcoming results will be closely scrutinised to determine whether companies can continue delivering the earnings growth needed to support elevated market valuations, particularly across the technology sector.

FTSE 100 edges higher as oil prices climb on Middle East tensions, while Genedrive and PageGroup lead the UK corporate headlines.

Market Overview

The FTSE 100 opened 0.01 per cent higher at 10,498.05, while the Euronext 100 slipped 0.09 per cent to 1,906.09 and Germany’s DAX fell 0.12 per cent to 25,036.04. Overnight, the Nasdaq closed higher at 26,281.61 and the S&P 500 gained to 7,575.39 as investors assessed renewed tensions in the Middle East after US strikes on Iran, driving a sharp rise in oil prices and tempering risk appetite across European markets.

Commodity markets reflected the geopolitical backdrop, with Brent crude strengthening sharply while gold also edged higher on safe-haven demand. Copper weakened alongside natural gas, while Bitcoin traded lower. Against sterling, the US dollar, Swiss franc, euro and Japanese yen all strengthened slightly, while the Australian dollar was little changed.

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Market Numbers

FTSE 100: Up (+0.01%), 10,498.05
Euronext 100: Down (-0.09%), 1,906.09
DAX: Down (-0.12%), 25,036.04
NASDAQ: Up, 26,281.61
S&P 500: Up, 7,575.39

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In the Headlines

Annual results – Genedrive (LSE:GDR)
Genedrive reported higher annual revenue as adoption of its NHS-approved pharmacogenetic test accelerated and international commercial activity expanded. The update highlights growing momentum in the company’s commercial rollout and supports its long-term growth strategy.

Trading update – PageGroup (LSE:PAGE)
PageGroup maintained its full-year outlook after second-quarter trading improved from the first quarter, with demand stabilising across several regions. The update suggests recruitment markets remain challenging but are showing signs of recovery.

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Currencies (vs GBP)

USD: Down (-0.02%), $1.3386
CHF: Down (-0.02%), Fr.1.0836
EUR: Down (-0.04%), €1.1738
JPY: Down (-0.02%), ¥216.7225
AUD: Up (+0.00%), $1.9282
Bitcoin (BTC/GBP): Down, £47,039.00

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Commodities

Copper: Down
Gold: Up
Brent Crude: Up
Natural Gas: Down

European equity markets opened lower on Monday as renewed conflict in the Middle East weighed on investor sentiment, while a sharp rise in oil prices supported energy stocks after Iran announced the closure of the Strait of Hormuz.

The pan-European STOXX 600 slipped 0.2% in early trading. Germany’s DAX lost 0.3%, France’s CAC 40 declined 0.2%, while London’s FTSE 100 outperformed with a 0.2% gain, supported by its heavy weighting in oil majors.

Energy Stocks Outperform

The jump in crude prices lifted shares across the European energy sector.

Shell (LSE:SHEL) rose 1.8%, while BP (LSE:BP.) advanced 2.7%. TotalEnergies (EU:TTE) gained 2.3%, with Maurel & Prom (EU:MAU), Eni (BIT:ENI) and other oil producers also benefiting from the stronger commodity backdrop.

The rise in energy stocks helped limit losses across the broader European market.

Strait of Hormuz Concerns Lift Crude Prices

Investor sentiment deteriorated after hostilities between the United States and Iran intensified over the weekend.

Iran’s Revolutionary Guards announced that the Strait of Hormuz had been closed “until further notice” following an attack on a commercial vessel and subsequent U.S. military retaliation.

U.S. Central Command disputed the claim, stating that the strategic shipping route remained open to lawful maritime traffic.

Even so, fears of potential disruption along a passage responsible for transporting around one-fifth of global seaborne oil supplies sent energy markets sharply higher.

Both Brent crude and West Texas Intermediate (WTI) climbed by more than 4.4%.

Recent Market Rally Faces Pressure

Monday’s decline marked a reversal after European equities recovered ground during the latter part of last week.

Technology companies and semiconductor stocks had led those gains, supported by optimism over artificial intelligence investment and hopes that diplomatic efforts in the Middle East would ease geopolitical tensions.

With the latest escalation, investors are now reassessing risk exposure, and further weakness could erase much of last week’s recovery.

Markets Await ECB Signals

Attention later in the day will turn to comments from European Central Bank Executive Board member Isabel Schnabel.

Investors will be looking for fresh clues on the outlook for interest rates, particularly given Schnabel’s reputation as one of the ECB’s more hawkish policymakers and her consistently cautious approach to reducing borrowing costs.

Akzo Nobel Advances on Takeover Interest

Among individual movers, Akzo Nobel (EU:AKZA) gained around 3% after Nippon Paint submitted an offer for the company’s decorative paints business.

European oil and gas shares moved higher on Monday after fresh military exchanges between the United States and Iran intensified concerns over global energy supplies, pushing crude prices sharply higher.

The renewed escalation has also renewed uncertainty over the interim agreement reached between Washington and Tehran last month, which had been intended to reopen the Strait of Hormuz and support further diplomatic negotiations.

Crude Prices Jump on Supply Concerns

Brent crude futures climbed 2.9% to $78.24 a barrel by 04:25 ET (08:25 GMT), while U.S. West Texas Intermediate (WTI) gained 2.7% to $73.34 a barrel.

The rally followed reports that Iran had once again declared the Strait of Hormuz closed, raising fears of further disruption to one of the world’s most important energy shipping routes.

European Oil Producers Advance

Higher crude prices boosted energy stocks across Europe, with the STOXX Europe 600 Oil & Gas index rising 1.2%, making it one of the strongest-performing sectors on the broader STOXX 600.

Among individual companies, OMV (TG:OMV) and Repsol (TG:REP) gained around 1% and 2%, respectively.

TotalEnergies (EU:TTE), Maurel & Prom (EU:MAU), Eni (BIT:ENI) and Equinor (TG:DNQ) all advanced between 1% and 2.1%, while Shell (LSE:SHEL) rose 1.1% and BP (LSE:BP.) added 2.3%.

Strait of Hormuz Traffic Declines

The market reaction followed another weekend of military escalation between the United States and Iran.

Iran launched strikes against U.S. facilities across the Gulf on Sunday, while the country’s Revolutionary Guards said on Monday that American military bases in Kuwait and Bahrain had also been targeted.

The conflict has affected shipping activity through the Strait of Hormuz, a strategic passage that normally handles around one-fifth of global daily oil and liquefied natural gas supplies.

According to ship-tracking company Kpler, vessel movements through the strait fell to their lowest level in five weeks on Sunday, with only six ships completing the transit.

London equities traded slightly higher on Monday despite renewed geopolitical tensions in the Middle East, with gains among energy stocks helping offset broader investor caution after fresh U.S. military action against Iran.

The FTSE 100 rose 0.07%, while Germany’s DAX fell 0.16% and France’s CAC 40 slipped 0.20%. Sterling also weakened against the U.S. dollar, with GBP/USD down 0.16% at 1.3386 by 03:25 ET (07:25 GMT).

Oil Prices Jump After Fresh U.S. Strikes

Crude prices climbed sharply after the U.S. launched another series of strikes against Iranian targets on Sunday.

U.S. Central Command said the operation was designed to further reduce Iran’s ability to threaten commercial shipping passing through the Strait of Hormuz, a vital route for global energy supplies.

Speaking to NBC’s Meet the Press, U.S. President Donald Trump said the waterway remained operational.

“It’s open,” he said, adding, “We bombed the hell out of them last night.”

His comments contrasted with those from Iran’s Persian Gulf Strait Authority (PGSA), which said the strait remained closed while a security review was carried out and that shipping would only resume once “stability and calm are restored.”

The latest military action followed strikes on Saturday, when CENTCOM said approximately 140 Iranian military targets were hit, bringing the total to more than 300 targets over three consecutive nights after Iranian forces allegedly attacked the Cyprus-flagged container vessel M/V GFS Galaxy.

Iranian Foreign Minister Abbas Araghchi wrote on X on 11 July: “Iran has so far kept its word, unlike the so-called U.S. Treasury Secretary who is violating Para 9 of the MoU,” adding, “that violation follows other violations and missteps by the United States” and that “there can only be mutual compliance.”

Meanwhile, CBS News reported that Iranian officials had privately told advisers to President Trump that the attack on commercial shipping had been carried out by a rogue faction and was not intended to derail negotiations. According to the report, discussions involving Vice President JD Vance, Jared Kushner and Steve Witkoff continued in Oman over the weekend.

Energy Markets React

Brent crude climbed 3.8% to $78.86 a barrel, while U.S. West Texas Intermediate crude gained 3.7% to $74.06 as traders priced in the possibility of supply disruptions in the Gulf.

Gold moved lower despite the geopolitical uncertainty, with gold futures falling 1.2% to $4,065.02 an ounce and spot gold declining 1.6% to $4,056.82.

UK Corporate Highlights

Among UK-listed companies, PageGroup (LSE:PAGE) reported stronger-than-expected second-quarter gross profit, with growth in the Americas and Asia-Pacific helping offset weaker conditions across Europe and the UK.

ME Group International (LSE:MEGP) reaffirmed its full-year profit guidance after saying trading improved following a slowdown in April that was linked to weaker consumer confidence in France.

Plus500 (LSE:PLUS) also maintained its full-year outlook after reporting its strongest first-half revenue performance in three years, supported by increased customer trading activity and continued expansion in the U.S. market.

U.S. equity futures traded close to unchanged on Friday as investors adopted a cautious approach following Thursday’s rally, with attention shifting toward the upcoming earnings season and key inflation data due next week.

With limited economic releases scheduled before the weekend, markets appeared content to consolidate recent gains while awaiting fresh guidance from corporate America.

Major Companies Prepare to Report

Several blue-chip companies are set to launch the second-quarter earnings season, including Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Johnson & Johnson (NYSE:JNJ), UnitedHealth (NYSE:UNH) and Netflix (NASDAQ:NFLX).

According to Daniela Hathorn of Capital.com, investors will focus not only on earnings but also on management commentary.

“Investors will be looking for confirmation that AI-related investment continues to translate into robust earnings growth and resilient margins, particularly among the large technology companies that have driven much of this year’s rally,” she said.

She added, “With valuations still elevated, earnings guidance could prove just as important as the headline results themselves.”

Tech Shares Continue to Lead

Thursday’s advance was driven primarily by technology companies, with the Nasdaq outperforming the broader market.

Strong interest surrounding SK Hynix’s (USOTC:HXSCL) U.S. listing and Micron Technology’s (NASDAQ:MU) $3 billion semiconductor investment announcement helped reinforce optimism across the sector.

Oil Retreat Offers Additional Support

Energy prices moved lower despite ongoing geopolitical tensions in the Middle East, easing immediate concerns over inflation and supporting broader market sentiment.

The decline in crude prices weighed on energy stocks, while technology, computer hardware, semiconductor and gold-related shares outperformed.

Investors now turn their attention to next week’s earnings reports and inflation releases, both of which are expected to play a significant role in shaping expectations for Federal Reserve policy and the direction of equity markets.

European equities traded cautiously on Friday as investors weighed renewed military exchanges between the United States and Iran alongside lingering concerns over artificial intelligence valuations.

The UK’s FTSE 100 gained 0.1%, while France’s CAC 40 and Germany’s DAX hovered close to flat as market sentiment remained subdued.

Eurozone government bond yields were little changed after a sharp sell-off in the previous trading session.

Among individual stocks, Careium AB jumped after the Swedish healthcare technology company reported a 24% year-on-year increase in second-quarter net sales.

Vodafone (LSE:VOD) also advanced sharply after UAE telecommunications group E& confirmed plans to sell its entire holding in the British operator to Vega.

Budget carrier EasyJet (LSE:EZJ) rallied after reaching an agreement in principle on the key financial terms of a £5.7 billion takeover proposal from U.S. private equity firm Apollo Global Management.

Recruitment company Hays (LSE:HAS) was another strong performer after forecasting full-year operating profit at the upper end of analysts’ expectations.

U.S. equity futures were mixed on Friday as investors looked ahead to the start of second-quarter earnings season while continuing to assess geopolitical risks in the Middle East and strong momentum in Asian technology stocks.

“Steady earnings fundamentals continue to anchor index volatility, Q2 results will be key to confirm this,” Barclays strategist Emmanuel Cau wrote in a note.

“Q2 results will be crucial in reconnecting price action with fundamentals, determining whether markets can extend gains from here and affirming sector/factor leadership.”

Gold remained under pressure heading into the weekend, while crude oil held onto most of its recent gains amid ongoing uncertainty surrounding the conflict between the United States and Iran. Japanese markets also attracted attention after the government proposed measures to increase domestic pension fund investment, and SK Hynix (USOTC:HXSCL) completed one of the largest ADR offerings ever seen in the United States.

Pension Reform Boosts Japanese Markets

Japanese government bonds and the yen strengthened after Finance Minister Satsuki Katayama said the government intends to encourage large pension funds, including the $2 trillion Government Pension Investment Fund (GPIF), to increase exposure to domestic assets.

The initiative could redirect significant capital toward Japanese stocks and bonds while supporting the currency if overseas allocations are reduced. Investors are also awaiting the government’s “Honebuto” economic strategy, due on 21 July, which is expected to include investment plans for artificial intelligence, semiconductors and energy.

SK Hynix Draws Strong Investor Demand

SK Hynix (USOTC:HXSCL) priced its U.S. ADR offering at $149 per share, raising approximately $26.5 billion in one of the biggest semiconductor equity offerings on record.

The offer was priced at about a 3% premium to the previous closing price in Seoul, while Reuters reported that investor demand exceeded the number of shares available by more than seven times.

Asian Markets Outperform Europe

Asian equity markets posted strong gains, led by semiconductor shares. South Korea’s Kospi rose roughly 5%, supported by Samsung Electronics, while Japan’s Nikkei 225 also advanced.

European markets were more subdued. The STOXX 600 traded close to unchanged after Thursday’s AI-led rally as investors focused on renewed geopolitical risks and the potential impact on inflation and global trade.

In the United States, S&P 500 futures slipped 0.2%, while Dow Jones futures added 0.1%.

Oil Retains Weekly Gains

Oil prices remained higher, with Brent and WTI both heading for strong weekly gains despite easing from the week’s highs as concerns over supply disruptions through the Strait of Hormuz moderated.

Gold, silver and platinum all remained on course for weekly declines as investors reassessed the outlook for inflation and interest rates.

Delta to Set the Tone for Earnings Season

Attention now shifts to second-quarter corporate earnings.

Delta Air Lines (NYSE:DAL) is scheduled to report results later today, with Wall Street expecting adjusted earnings per share of $1.51 on revenue of $17.53 billion, including passenger revenue of $15.63 billion and cargo revenue of approximately $231.6 million.

The airline’s outlook will be closely watched for signs of consumer travel demand and the health of the broader economy.

European equity markets traded little changed on Friday as early optimism generated by a major U.S. technology listing faded, with investors instead focusing on escalating tensions between the United States and Iran that have reignited concerns over inflation and global trade.

The pan-European STOXX 600 was broadly unchanged in early trading after posting a modest rebound in the previous session, supported by gains in artificial intelligence-related stocks.

Germany’s DAX and France’s CAC 40 were also largely flat, while London’s FTSE 100 and Italy’s FTSE MIB each advanced around 0.3%.

Despite Friday’s stability, the STOXX 600 remained on course for a weekly decline of almost 2%, marking its weakest weekly performance since mid-April as investors reassessed the economic risks posed by the growing conflict in the Middle East.

Geopolitical Risks Return to the Forefront

Market sentiment weakened after reports that U.S. forces carried out airstrikes on 90 Iranian targets on Wednesday in an effort to reduce threats to international shipping.

Iran responded with strikes targeting U.S. assets in Kuwait, Bahrain and Qatar, significantly increasing concerns over maritime traffic through the Strait of Hormuz, one of the world’s most important energy transport routes.

The collapse of the fragile ceasefire agreed on 17 June pushed Brent crude back towards $77 per barrel, reversing the recent decline in oil prices and prompting investors to reassess expectations for inflation and central bank interest rate policy.

Technology Rally Loses Momentum

The geopolitical backdrop overshadowed what had initially been a positive session for technology stocks following the successful U.S. Nasdaq listing of South Korean semiconductor manufacturer SK Hynix (USOTC:HXSCL), which raised $26.5 billion in one of the largest share offerings on record.

Although the heavily oversubscribed flotation initially lifted semiconductor and AI-related shares that had recently come under pressure, the rally gradually lost momentum as investors returned their focus to macroeconomic risks and elevated valuations.

European semiconductor stocks moved lower, with Siltronic (TG:WAF) falling 2%, Soitec (EU:SOI) declining 2.8% and ASML (EU:ASML) easing 2%.

Corporate Movers

EasyJet (LSE:EZJ) surged 13% after agreeing in principle to a takeover approach from Apollo.

Vodafone (LSE:VOD) climbed 12% after French telecom entrepreneur Xavier Niel acquired e&’s stake in the company.

St. James’s Place (LSE:STJ) fell around 5% after reports that one of its partner advisory firms plans to leave the wealth manager.