Public Markets 24 Hours

Last updated: July 13, 2026, 5:30 AM ET

Geopolitical Tensions Fuel Market Volatility and Oil Prices

Global stocks faced headwinds as escalating US-Iran hostilities spurred a ‘risk-off’ sentiment. Oil prices jumped significantly amid fears that renewed strikes could disrupt crude flow through the Strait of Hormuz. European stocks declined in tandem with the broader market downturn, although energy shares found support from the rising oil prices. The Treasury two-year yield climbed to a 16-month high as higher oil prices fueled speculation of further Federal Reserve tightening. Base metals also retreated on concerns over global economic growth stemming from the Middle East conflict. South Africa plans to boost its strategic oil reserves for the first time since the apartheid era, a move to mitigate potential supply shocks. China’s crude imports are poised to recover as fuel export curbs ease and prompt Middle East supplies are snapped up.

European Markets and Companies Face Scrutiny

German financial firms that engaged in controversial dividend tax strategies totaling as much as €7.01 billion, according to BaFin. The European Union is moving towards a ban on social media for children, proposing gradual access based on age to address online safety concerns. Antenna maker Smag Mobile Antenna Masts AG by up to 33% in its German debut, signaling a weakening appetite for defense stocks in Europe. Deutsche Bank and UniCredit are suing Linde over alleged losses from Russian sanctions, in a test case that could determine the recovery of hundreds of millions of euros. Nippon Paint has offered €7.5 billion for Akzo Nobel's decorative coatings business, attempting to gatecrash a rival deal.

US Markets and Corporate Activity

US stocks beyond the dominant technology giants are expected to deliver strong earnings this season, potentially broadening the ongoing equity rally, according to Morgan Stanley strategists. Citigroup’s strategists have double-downgraded UK stocks, deeming them less appealing due to their defensive and commodity-heavy nature as geopolitical tensions ease. The UK stock market is currently viewed as less attractive. The proposed $111 billion merger of Paramount and Warner Bros. faces potential as state attorneys general are reportedly preparing to file a lawsuit to block the deal. Mastercard is examining the sale of its UK payments subsidiary Vocalink, with discussions underway to sell a majority stake back to British banks. Wall Street banks are profiting from a revival in large deals, including the SpaceX IPO and mega-mergers, fueled by AI optimism and strong consumer spending.

Asian Markets and Economic Outlook

MUFG Bank has surpassed Toyota to become Japan's most valuable company, marking the first time a bank has achieved this position in recent history. The yen weakened considerably and Japanese government bonds extended losses as reports indicated no plans to overhaul the Government Pension Investment Fund’s asset allocation. Taiwan Semiconductor Manufacturing Co. reported a 36% surge in quarterly sales, meeting expectations and underscoring continued global demand for AI hardware. SK Hynix Inc. shares plunged by a record 15%, contributing to a broader selloff in South Korean equities and raising concerns that the AI-driven rally had become overstretched. Investors are reportedly cutting back bets on Asian chipmakers after a significant rally in the sector.

Private Markets and Financial Innovation

Moneybox has selected London’s Pisces market for its employee share sale, a £45 million offering that further bolsters the private markets platform. UK-listed Bridgepoint Group is acquiring a majority stake in Danish drone firm UMag Solutions, adding to a series of deals involving drone manufacturers. Tata Capital Ltd. is entering India's gold loan market through an acquisition, intensifying competition in the $194 billion sector. The digitalization of finance in the UK a £33 billion boost to the economy, according to a task force chair, if progress is made in areas like issuing sovereign bonds on the blockchain.

AI's Expanding Influence and Legal Ramifications

AI may actually more work for lawyers, suggesting a growing demand for legal expertise in this rapidly evolving field. Companies are increasingly turning to Chinese AI models, with firms like Door Dash and Siemens seeking to reduce bills and reliance on US technology. The significant costs associated with AI are prompting employers to reconsider incentives for staff to use these new tools. Investors are grappling with the outsized influence of just three technology stocks, collectively worth $4.4 trillion, on emerging market returns, leading to a rotation beyond AI winners.

Commodities and Shifting Demand

The euro zone's economic growth outlook has been cut by economists, with renewed Middle East hostilities weighing on the region. El Niño and the Iran war are combining to create inflationary pressures on food prices, impacting US consumers already sensitive to post-Covid inflation. South Africa is planning to increase its strategic oil reserves for the first time since the apartheid era, aiming to mitigate supply shocks. China's oil imports are expected to recover from a slump as the country relaxes fuel export curbs and procures prompt Middle East supplies. Australia seeing strong for Chinese batteries in its renewable energy transition.

Legal and Regulatory Developments

The US Department of Justice is investigating allegations against UAW President Shawn Fain, with a federal monitor overseeing the union suggesting improper actions to benefit his fiancée. Freshfields, a major law firm, has culled partners following a pay overhaul, with many receiving fewer equity points. El Niño and the Iran War are creating a food squeeze, with US consumers already facing elevated prices. The Netherlands is exploring solutions for excess manure, with volatile fertilizer costs potentially offering a new avenue.