Public Markets
Last updated: July 9, 2026, 11:30 AM ET
AI Fuels Deal-Making Surge, But Sustainability Questions Linger
Global deal-making has reached a decade-high, with $3.2 trillion spent in the first six months of the year, largely driven by the artificial intelligence economy. This surge is prompting companies like Tera Wulf Inc. to seek substantial financing, with plans to raise about $3.5 billion in debt for a new data center campus. The broader implications of AI are also being felt in investment strategies, with JPMorgan Asset Management noting that investors are becoming more adept at discerning AI-related risks and rewards. Meanwhile, private equity firms are also capitalizing on the AI boom, with Apollo Global Management’s $35 billion credit deal for AI chip financing set to begin trading. BlackRock anticipates that AI capital expenditures will remain stable for the next two to three years, supporting the investment theme around the technology.
Geopolitical Tensions Ripple Through Energy Markets and Defense Sectors
Renewed hostilities between the US and Iran are injecting fresh uncertainty into global markets, particularly impacting the oil sector. Iran has expedited oil exports, sending roughly 11 million barrels of crude into the market as tensions with the US escalate. This situation has led to caution among shipowners, with insurers seeing fewer inquiries for journeys through the Strait of Hormuz and some reporting increased costs for coverage Hormuz Ship Insurance Demand Dropscosts for coverage. Goldman Sachs suggests that this flare-up could delay the recovery of Middle Eastern oil supplies Goldman Says Hormuz Flare-Up May Delay Recovery. European natural gas prices have seen minor fluctuations as traders assess supply dynamics following the renewed conflict European Gas Edges Lowerrenewed conflict. Conversely, US natural gas futures remain subdued due to adequate supply and above-average storage levels U.S. Natural Gas Futures Held Back. Meanwhile, the defense sector is seeing increased valuations as government spending commitments translate into orders, with European defense stocks projected to have further upside Defense Valuations Yet to Peakhave further upside. Germany has also announced a deal to purchase US Tomahawk missiles Germany Strikes Deal to Buy US Tomahawk Missilesmissiles.
Consumer Goods Navigate Inflationary Pressures and Shifting Demand
Consumer companies are grappling with persistent inflation and evolving consumer preferences. Pepsi Co is observing rising inflationary pressures on US consumers, with a noticeable impact on sales volumes in its second quarter as budget squeezes affect snack and soda purchases Pepsi Co Warns of ‘Rising Inflationary Pressures’soda purchases. CEO Ramon Laguarta is focusing on opportunities in smaller-portion products and teas aimed at mental focus to address these trends ‘Expectations on Every Calorie’—Pepsi Co’s CEO Is Navigating GLP-1s and Inflationtrends. Elsewhere, Seven & i Holdings, the owner of 7-Eleven, has raised its annual guidance thanks to strong earnings from its North American convenience store business, which benefited from higher gasoline prices 7-Eleven Owner Raises Guidance.
Corporate Activity and Market Developments Across Sectors
In corporate news, Bank of Nova Scotia is re-entering the precious metals trading business after a six-year absence Scotiabank Re-Enters Precious Metals Businesssix-year absence. European molecular testing company Qiagen NV is reportedly drawing early takeover interest from firms like EQT AB and Advent Qiagen Draws Early Takeover Interest. German fashion group Hugo Boss is urging shareholders to reject Frasers Group’s $2.2 billion takeover bid, deeming it inadequate Hugo Boss Urges Shareholders to Reject Frasers’ $2.2 Billion Takeover Bid. The UK’s Capita Plc experienced a significant drop in its stock price after announcing that its profit and cash flow would be negatively impacted by failures in managing a pension contract UK’s Capita Sinks on Profit Hita pension contract. In the automotive sector, Polestar's chief indicated that globalization for car manufacturers may be over, following a US sales ban for the Swedish group Polestar Chief Says Globalisation for Carmakers Is OverSwedish group.
Asia-Pacific Markets Show Mixed Trends Amid Global Headwinds
Emerging market stocks have extended their declines as risk appetite fluctuates, with investors monitoring US-Iran tensions and oil price movements Emerging Stocks Extend Dropmovements. Nigerian equities have surged to become the world's top-performing stock market this year, surpassing South Korea's Kospi, as sentiment shifts away from AI-focused stocks Nigerian Stocks Vault Past Korea’s Kospi. SK Hynix Inc. is preparing to price its US listing at $149 per American depositary receipt, with the offering reportedly more than seven times oversubscribed SK Hynix Said to Guide US Offering Price SK Hynix US Offering Is More Than Seven Times Oversubscribed. The WSJ Dollar Index remained largely unchanged WSJ Dollar Index Rises 0.001%. Hong Kong's MTR Corporation has seen its stock fall in debut trading after raising $3.1 billion in its listing Apple Supplier Luxshare Drops After $3 Billion Hong Kong Debutin its listing. Indonesia has received its first shipment of Russian oil, underscoring Moscow's efforts to expand its customer base amidst global energy market shifts Indonesia Gets First Russian Oil Shipment.
Regulatory and Market Infrastructure Developments
The Commodity Futures Trading Commission (CFTC) is blocking CME Group Inc.’s attempt to introduce 24/7 trading for oil futures CFTC Blocking CME Plan to Offer 24/7 Oil Futures Trading Regulator to Block CME Bid to Fast-Track Round-the-Clock Oil Contracts. CME Group has also launched a new product designed to simplify basis trade bets, aiming to reduce costs for a popular hedge fund strategy CME Launches New Product to Simplify Basis Trade Betsfund strategy. Germany's new reform package is seen as a step in the right direction but not a significant catalyst for its economy, according to Fitch Ratings Merz’s Reforms for Germany Get Fitch CheerRatings.
US Treasury Market and Investor Sentiment
The yield on the 30-year US Treasury is now above 5%, prompting investors to re-evaluate attractive yield levels according to PGIM’s Gregory Peters Repricing of 30-Year Treasury Yield Has Just BegunGregory Peters. HSBC maintains an underweight position in US Treasurys, primarily to support its overweight positions in equities and high-yield credit HSBC Keeps Underweight in U.S. Treasurys. US jobless claims remained largely unchanged last week, indicating a low level of layoffs US Jobless Claims Little Changedlayoffs.
Ukraine Defense and International Relations
President Trump announced that the United States would license Ukraine to produce Patriot air-defense systems, a move cautiously welcomed by Kyiv Ukrainians Cautiously Welcome Trump’s Announcement License to Make Patriot Missiles Could Help Ukraine Defend Against Russiaby Kyiv. However, it could take months or years for these systems to become operational Ukrainians Cautiously Welcome Trump’s Announcementbecome operational. Germany and Japan already have similar permissions to build the American interceptors For Ukraine, Other Patriot Makers Are a Cautionary Taleinterceptors. Regional officials foresee a fresh wave of uncertainty for Europe's economy following President Trump's declaration that the US ceasefire with Iran is over Europe Faces Fresh Volatility After Iran Flare-Upover.
Real Estate and Infrastructure Investment
Mavik Capital Management is seeking to raise $1 billion to acquire distressed commercial real estate assets, which are still recovering from increased borrowing costs Mavik Seeks $1 Billion to Hunt Distressed Commercial Real Estateborrowing costs. A Los Angeles grade school is planning to sell $32 million in municipal bonds to fund its operations Los Angeles Grade School for Gifted Kids to Borrow $32 Millionits operations. Nigeria's $22 billion pension industry is exploring plans to establish a fund to support infrastructure upgrades in the country Nigeria’s $22 Billion Pension Industry Eyes Infrastructure Fundin the country.
Private Equity
Last updated: July 9, 2026, 11:30 AM ET
Fundraising and M&A Activity Shows Resilience
Private equity dealmaking, particularly large transactions, continues to assert its influence on the global M&A market. This trend is supported by a notable surge in fundraising, with the second quarter of the year setting a new record. Schroders anticipates a threefold increase in GP-led secondary transaction volumes, suggesting a dynamic secondary market ahead volumes to treble. In the secondaries space specifically, activity is expected to gain momentum in the latter half of the year following a volatile first half. Charlesbank has finalized its investment in Overbay, a secondaries firm, with the Overbay team retaining significant long-term stakes and operational control.
Sector-Specific Investments and Platform Builds
KKR has launched Allyntra, a new medical technology platform anchored by its existing portfolio company Precipart. In the environmental services sector, several companies are reportedly preparing for sale, with Ares, Littlejohn, and Palladium among the firms considering divestments of environmental service providers. Kohlberg, meanwhile, has divested its stake in a cake decorations company to Sentinel exits company. Bregal-backed Juniper Landscaping has acquired two aquatic maintenance firms, Compass Environmental and Aquatic Weeds, expanding its commercial landscaping operations. Pye-Barker, also PE-backed, has acquired Response TECH, a security and life safety services provider. Decision HR, supported by Coalesce, has purchased payroll service provider Paymasters Inc. snaps up. Arrow Global has agreed to acquire Fusion Specialty Group, a managing general agent that has written approximately £290 million in gross premiums.
Venture Capital and European Startup Growth
Europe experienced its strongest quarter for venture funding in four years, with startups raising a total of $24 billion in the second quarter, a roughly one-third increase. This surge in European venture capital is also reflected in the establishment of new funds, with notable European funds emerging in the first half of 2026. World Fund and IQ Capital are among the investors in a €91 million round for Quantum Diamonds backers of round. In a separate development, Paradigm, a crypto venture capital firm, has raised $1.2 billion to invest in startups focusing on the "technical frontier," including robotics and AI, signaling an expansion beyond its cryptocurrency origins. EdVisorly, an AI-native platform addressing college transfer processes, has secured a $13.3 million Series A funding round.
Strategic Moves and Market Outlook
Korean Teachers' Credit Union is planning to commit 100 billion won to domestic blind-pool venture capital funds in 2026. Nandan Nilekani has stepped down from his GP role at Fundamentum but remains an anchor investor as the firm launches its third fund, targeting $200 million for Indian AI and fintech startups. B Capital is leading an investor consortium, including the California Public Employees' Retirement System, to acquire Russell Investments. Searchlight’s James Redmayne views B2B events and blue-collar services as areas of high conviction for the firm, noting that the gap between bid and ask prices for quality assets is narrowing, which should encourage selective deal activity in the second half of the year. Redmayne also pointed to a distinct bifurcation in the market, where premium assets with stable fundamentals are attracting significant buyer interest, while more cyclical or AI-exposed businesses are facing challenges. O2 Investment Partners has appointed Micah Dawson as an operating partner to drive value across its portfolio companies. Europe’s defense sector has seen a new unicorn emerge, raising $175 million in a Series B funding round. PSG Equity has agreed to a majority growth investment in Bright Analytics, a Belgian corporate performance management software provider serving over 1,300 customers across Europe agrees to investment.
Sector Investment
Last updated: July 9, 2026, 11:30 AM ET
Superfund Expands Private Market Bets
Australia's Rest superfund is increasing its allocation to private markets, with a focus on US property and infrastructure. The fund views infrastructure as well-suited to its long-term investment objectives, particularly given its young member base. Rest’s private markets head, Marina Pasika, indicated the fund avoids rigidly segmenting its portfolio by asset class, instead favoring a thematic approach that extends to unlisted real estate.
Infrastructure Sector Dynamics
Mid-market infrastructure assets are outperforming their large-cap counterparts, though the performance gap between top and bottom large-cap managers is narrower. Within the data center subsector, contractual structures are undergoing rapid evolution, according to S&P warning of changes. Despite these shifts, growing demand continues to support positive creditworthiness trends for data centers.