Public Markets 24 Hours

Last updated: August 4, 2026, 2:31 AM ET

Global Markets and Earnings

HSBC Holdings Plc reported a significant increase in its second-quarter net profit, which jumped 68% from the previous year to $7.69 billion. The London-based bank also announced plans for a share buyback of up to $1 billion. Europe's largest lender boosted its profits, driven by its wealth management and insurance businesses in Hong Kong, and has resumed share buybacks, reporting a quarterly profit of $10.1 billion. HSBC's record-breaking rally is now facing a test from its earnings, with investors closely watching for capital returns and buyback performance.

Lufthansa AG experienced a substantial profit slump in its second quarter, with net profit falling to €123 million from €1.01 billion in the prior-year period. The carrier group has tightened its 2026 guidance due to this profit decline and warned of heightened uncertainty for its full-year outlook. Volatility in jet fuel prices and shortened booking cycles are complicating Lufthansa's efforts to boost profit.

Bayer AG posted better-than-expected profit in the second quarter, largely attributed to a strong performance in its crop science business.

Currency and Commodity Movements

The yen has shown strength, with a joint intervention by the U.S. and Japan contributing to its rally against the dollar. Strategists suggest that the yen's appreciation trend may benefit the Singapore dollar, potentially leading to its consolidation against the U.S. dollar. Citigroup Inc. and Barclays Bank Plc analysts predict that the yen's rally will bolster other Asian currencies due to their high correlations. Investors remain skeptical about the yen's sustained strength following the U.S. intervention. Japan has alternative tools to defend its currency without selling its $1.1 trillion U.S. Treasury portfolio, as its short-term debt holdings are diminishing, according to Citigroup Inc. The Federal Reserve's liquidity facility could prevent Japan from selling Treasuries to support the yen, but prolonged use might encourage markets to test the resolve of the U.S. and Japan. Federal Reserve of New York President John Williams stated that interest rates are well-positioned, anticipating that inflation will ease in the second half of the year.

Gold prices held steady, with Chinese institutional investors actively purchasing the precious metal, helping to maintain prices above the $4,000 per ounce threshold. Gold has been trading within a range as markets weigh the evolving Middle East situation against shifting U.S. monetary policy.

Iron ore dipped to a 13-month low, a level that could threaten higher-cost production operations.

Oil prices fell in early Asian trade amid prospects for the reopening of the Strait of Hormuz, a critical waterway for global oil transportation. President Trump indicated a potential return to diplomacy with Iran, suggesting that peace talks would resume, which also contributed to a drop in oil prices. The markets reacted to President Trump's announcement that he had halted a planned U.S. assault on Iran, leading to a sharp decline in oil prices. Oil was steady after its largest drop in a week, as President Trump described his latest offer of talks as Tehran's "last chance" and anticipated a full reopening of the Strait of Hormuz. Venezuela's oil exports plunged in July due to reduced demand from India, following a pause in the Iran war which unlocked Middle Eastern barrels.

Corporate and Deal Activity

AstraZeneca is reportedly in talks with Bristol Myers Squibb for a potential $400 billion merger, which could create the world's fourth-largest drugmaker by market value. However, AstraZeneca investors have expressed concerns regarding the potential patent cliff and antitrust risks associated with this mega-merger.

In the technology sector, Palantir Technologies reported second-quarter results showing a 23% climb in American sales, with CEO Alex Karp noting that "demand for AI sovereignty has now been unleashed." Shares of Palantir jumped on "otherworldly" sales and an improved forecast. Amazon.com Inc. surpassed $3 trillion in market value for the first time, becoming only the fifth company to achieve this milestone.

Clorox Company reported fourth-quarter earnings that beat analyst expectations, despite lower sales volumes and increased costs from logistics and a recent acquisition. The company now forecasts fiscal year sales to rise between 13% and 14%, following a fourth-quarter revenue of $1.95 billion.

Whirlpool's focus on North America has tied its fortunes to the slumping U.S. housing market, leading to challenges after abandoning its global ambitions.

Geopolitical and Economic Developments

The U.S. sent its first flight of deportees to Venezuela since the earthquakes, a move that has drawn criticism regarding the deaths of deportees housed in a collapsed building. Thousands of civilian workers remain stranded on ships at risk of attack by Iran in the Strait of Hormuz, with some sailors held by the Iranian navy for over three months. President Trump claimed that negotiations with Iran were underway despite denials from Tehran, describing them as the Islamic republic's "last chance." Iran stated that there were no current talks with the United States, even as President Trump cited progress in negotiations for canceling a threatened attack on Iran. Experts suggest that by expanding the arena of fighting in the region, Tehran has warned about the dangers of a widening war, indicating that for Iran, Trump's reversal on escalation shows who holds the upper hand.

The Senate is advancing a bill to avert a government shutdown, with lawmakers eager to avoid another spending conflict before the midterm elections, though it still requires House approval. California Democrats are divided on how to implement a proposed billionaire tax, with leaders endorsing a ballot measure for November but the party lacking unity on the issue.

New York's high cost of living is creating barriers to dating, with expenses like $130 dinners and expensive cocktails contributing to the difficulty for Gen Z to afford a first date.