Public Markets 24 Hours

Last updated: July 8, 2026, 2:30 AM ET

Global Markets Brace for Volatility Amid Middle East Tensions

Renewed US strikes in Iran and the revocation of waivers allowing Iranian oil sales sent crude prices higher, triggering fears of energy supply disruptions and complicating the inflation outlook. Oil futures jumped significantly after attacks on ships in the Strait of Hormuz sparked retaliation, potentially throttling energy flow from the region. This volatility spooked investors, causing government bonds across Asia-Pacific to fall in price terms as crude prices climbed. Gold, however, found support amid the renewed Middle East tensions, though it traded in a narrow range as markets awaited clues on the Federal Reserve's interest rate path. The conflict also impacted shipping recovery, with insurers and operators on high alert for fuel shortages and potential disruptions.

Asia-Pacific Markets See Mixed Performance and Strategic Shifts

A significant market rotation is underway in Asia, with investors pulling money from chipmakers that powered this year's rally and seeking cheaper exposure to the technology boom. Chinese stocks in Hong Kong surged the most in 14 months, driven by a rotation into less crowded market segments and optimism surrounding local AI model makers developing their own chips. Meanwhile, Korean stocks tumbled amid this shift. China's benchmark sovereign bond auction saw demand gauges reach a record high, indicating strong investor appetite for the securities, while the US dollar is expected to remain rangebound against the Chinese yuan in the near term, according to Goldman Sachs. In Singapore, Minor Food, the operator of Burger King restaurants, is planning a listing aiming to raise as much as $310 million, which would be one of the largest food-and-beverage offerings in the city-state in nearly two decades. Foundation Healthcare Holdings Ltd. also prepared for its debut in Singapore after its IPO.

AI Trade Under Scrutiny as Tech Stocks Wobble

The artificial intelligence investment theme faces growing scrutiny as chipmakers experience a downturn, with US technology shares declining after Samsung Electronics' earnings failed to fully satisfy market expectations. This has renewed pressure on chipmakers globally and spurred worries over the sustainability of this year's AI rally. While some investors, like Australia's pension fund Uni Super, are shrugging off valuation concerns, betting on AI to drive future growth, others are questioning the broader AI spending spree, with warnings that companies outside the tech giants are struggling to see profitability gains from their AI investments. Meta is reportedly testing "super sensing" AI glasses, raising new privacy concerns, while the market ponders whether big tech might have overbuilt compute capacity. SpaceX, despite strong interest, saw its shares stumble in their Nasdaq-100 debut, and index funds have yet to significantly boost its stock.

London IPO Market Dries Up Amid Takeover Surge

The value of bids for companies listed on the London Stock Exchange has dwartled new entrants, with bids for listed companies worth nearly £60 billion compared to a combined market value of new listings at only £2.2 billion. This stark imbalance means the value of bids is 27 times greater than the value of new companies joining the market this year. In a move that could further complicate the landscape for public markets, Nest plans a £1 billion venture capital push for UK pension savers, signaling a push for higher allocation of assets into private markets. Meanwhile, Ocado's ongoing challenges serve as a miniature example of the "founder trap".

China's Economic Landscape: Storms, Bonds, and Trade

Deadly storms in southern and central China, worsened by a convergence of factors, highlight the increasing frequency of weather extremes the nation must contend with. In contrast to the environmental challenges, a gauge of demand for China’s benchmark sovereign bonds hit a record high on Wednesday, indicating strong appetite for the securities. China has also extended its buying spree of US soybeans, as agricultural trade between the two largest economies gathers pace. However, manufacturing gluts in China are reviving memories of sweeping reforms needed to address industrial excess.

Corporate Dealmaking and Restructuring

In the realm of corporate finance, GM-backed Momenta is set for its Hong Kong debut after a $752 million IPO, though its shares rose modestly from the offering price amid broader caution on the profitability of the autonomous driving sector. KKR-backed Smart HR has reportedly delayed its Tokyo IPO to next year, citing investor concerns over its targeted valuation. Jefferies Financial Group is exploring investor interest for a $5 billion debt package to support Carl Icahn in a potential rival bid for Caesars Entertainment. In other deal news, Coty is transferring its Gucci Beauty license back to Kering ahead of schedule for $400 million, with Kering expecting to license the brand to L'Oréal.

Regulatory and Legal Developments

Thailand's market regulator is considering legal action against a major investor in True Corp. over disclosure inconsistencies. In Mexico, former Pemex CEO Victor Rodríguez has been detained by authorities. S&P Dow Jones Indices has placed Turkey on a watchlist for a potential downgrade to frontier-market status, joining MSCI Inc. in issuing similar warnings. In the US, a federal judge rejected a Justice Department subpoena seeking information on election workers in Fulton County, Georgia, related to the 2020 vote. Meanwhile, Oklahoma's attorney general has sued Allstate Corp., alleging the insurer schemed to underpay homeowner claims.

Commodities and Energy Markets

Soybean oil futures climbed to a three-week high following fresh US military strikes on Iran, which sent crude oil prices higher and raised the prospect of increased demand for biofuel feedstocks. Separately, workers at BHP Group's Port Hedland iron ore export terminal in Western Australia are set to stage an eight-hour strike on July 16. BB Energy has agreed to relax an injunction on the government of South Sudan in exchange for receiving three cargoes of oil, easing tensions in a $142 million legal dispute. The US Department of Defense is also buying lithium for its strategic stockpiles as it seeks to reduce supply risks for critical minerals.

Global Economy and Policy Watch

France announced additional budget cuts of €3 billion ($3.4 this year as it struggles to meet its deficit reduction goals due to weaker economic activity. The French government has also lowered its 2026 GDP forecast to 0.7% due to a delayed budget and the Middle East conflict. Japan's borrowing costs have soared to a 30-year high amid concerns over long-term spending plans. Indonesia's stock market is facing scrutiny, with S&P Dow Jones following MSCI in placing the Southeast Asian market on a watchlist for reclassification to 'frontier' status.

Private Markets and Investment Trends

KKR’s Arctos has raised $6.2 billion to back private-markets managers, with its first fund aimed at providing growth capital to private-markets firms. In Chile, new pension rules are sparking industry division over their potential market impact. Meanwhile, a selloff in Indonesian assets has lured a South African money manager with $29 billion in assets, who views the situation as a buying opportunity.