Public Markets 3 Days

Last updated: June 28, 2026, 11:30 PM ET

Public Markets Briefing

Global Equities & Macroeconomic Trends

The global equity market navigated a landscape of mixed signals, with U.S. futures climbing on reports of de-escalating U.S.-Iran tensions, which also saw oil prices inch higher after a period of attacks in the Persian Gulf. However, a broader souring risk sentiment began to weigh on commodities, including gold, which declined. This sentiment appeared to spill over into artificial-intelligence-related assets, contributing to a tech rout that exposed significant speculative machinery in the market. The Federal Reserve’s hawkish stance and a strengthening dollar continued to pressure industrial metals, with copper experiencing a decline. In Asia, the Singapore dollar consolidated against the U.S. dollar amid a cautious mood. Meanwhile, European markets saw investors creatively seeking AI exposure through power suppliers and banks, moving beyond traditional tech giants. The Bank for International Settlements issued a warning that AI "exuberance" could threaten the global economy.

Fixed Income & Sovereign Debt

Goldman Sachs recommended investors go long India’s 30-year, anticipating further appreciation. The Indian rupee, meanwhile, led Asian peers higher, driven by falling crude prices and capital inflows, with the RBI potentially allowing further appreciation before resuming dollar purchases. In contrast, the New Zealand dollar faces a subdued third quarter due to a resurgent greenback and lingering energy shock effects from the Iran conflict. Emerging market bonds faced challenges as Federal Reserve Chair Kevin Warsh's hawkish stance dampened a potential rally. Sovereign wealth funds are increasingly pivoting to private assets, including private credit and infrastructure, driven by concentration risks in public markets and national security concerns, according to industry surveys. Some of the largest bond managers are reportedly targeting a sweet spot to navigate the early days of the "Warsh era." Concerns are also mounting over the leverage fueling the U.S. stock rally, with leveraged funds and margin debt reaching unprecedented levels this year.

Asia-Pacific Markets & Investment

Hong Kong’s commercial property sector is experiencing pockets of weakness, with Ares cutting office tower by up to 57% in a struggling market. A Philippine fintech unicorn, backed by Ant International, is planning to raise up to $1.5 billion in an IPO, which would be the country’s largest ever. China's central bank surprised traders by withholding the rate on its debut overnight reverse repo operation, leaving market participants awaiting further guidance. Economic forecasting in China faces uncertainty as structural changes and new industry growth reshape energy demand patterns. OpenAI has appointed Uber's former India and South Asia President, Prabhjeet Singh, as its managing director for India, signaling a deepening investment in the region. In Japan, RBC Blue Bay Asset Management remains bullish on Japanese AI stocks, anticipating a rally extending into 2027, though they are trimming near-term risk. The China AI race is not solely a U.S. vs. China dynamic, with Washington adopting a playbook similar to Beijing's in AI policy.

Corporate & Financial News

Williams Cos. is in advanced talks to acquire rival natural gas pipeline operator Momentum Midstream for approximately US$5.5 billion, a deal that would rank among its largest. Private equity owners of Troon Golf, a major U.S. golf course operator, are exploring a potential sale. Biolife Solutions Inc. has attracted takeover interest, including from Repligen Corp., according to sources close to the matter as of this week. Quidel Ortho is reportedly looking to sell its testing unit, with private equity firms circling healthcare companies, following a significant drop in its shares since its COVID-19 test approval. In the luxury sector, Saks Global has emerged from bankruptcy as Exemplar Luxury Group, with CEO Geoffroy van Raemdonck emphasizing a commitment to its retail brands Neiman Marcus, Saks Fifth Avenue, and Bergdorf Goodman. KKR & Co. has agreed to buy Electricite de France SA’s renewable power businesses in the U.S. and Canada, a deal driven by the AI boom's demand for electricity assets. The Canadian product testing and certification company CSA Group is exploring a sale that could value the business at around C$2 billion.

Geopolitical & Regional Developments

Pakistan reported that its forces killed 29 militants in intelligence-based operations and airstrikes along the Afghan border, in response to earlier attacks. In Venezuela, the government faces accusations of politicizing earthquake relief efforts, with critics claiming the interim president, Delcy Rodríguez, is exploiting the tragedy for political gain as aid groups flock to the region. Opposition leader María Corina Machado is reportedly working on a fast return to Venezuela, a move that could significantly reshape the political landscape. Ukraine has stepped up threats against Belarus, accusing it of aiding drone attacks by allowing its radio relay stations to be used for guiding Russian drones. Geopolitical tensions in the Persian Gulf, particularly between the U.S. and Iran, have strained a ceasefire and tempered expectations for energy prices. The Strait of Hormuz remains a critical leverage point for Iran in peace talks with the U.S., with Iran willing to risk the cease-fire to maintain its position. Mines are expected to impact Strait of Hormuz shipping for months, severely restricting traffic.

Technology & AI

The rapid expansion of new industries in China is creating greater uncertainty in forecasting energy demand. In the realm of artificial intelligence, the business of advanced chip packaging, crucial for boosting computing power, has made the United States more reliant on Taiwan. The AI race is not solely a U.S. versus China endeavor, as Washington is beginning to adopt a similar playbook to Beijing in AI policy. While AI chatbots are prominent, factory-floor applications are seen as the key to realizing AI’s potential and significantly enhancing economies. The recent tech rout has exposed the speculative machinery of modern markets and the swiftness with which it can work in reverse. Investors seeking AI exposure in Europe are creatively looking towards companies that enable the technology. Axon CEO Rick Smith is betting his company's dominance and his own compensation on a tech-driven vision for policing.

Other Market Developments

In the Philippines, a fintech unicorn backed by Ant International is planning its IPO, aiming to raise up to $1.5 billion, which would be the country's largest-ever listing. Hong Kong's commercial real estate market is seeing significant price cuts, with Ares reducing office tower by as much as 57%. The European Central Bank’s Isabel Schnabel warned of upside inflation risks despite a peace deal, citing potential pressures even as the Strait of Hormuz reopens. The Panama Canal anticipates revenue exceeding forecasts for fiscal year 2026, partly due to increased traffic following the closure of the Strait of Hormuz. Australia's Aware Super and Canada's Omers have encountered challenges with planning policies and retrospective liabilities, prompting them to rethink UK housing investments. Airlines are bracing for potentially US$127 billion in extra costs due to a shortage of carbon credits. In a move aimed at protecting domestic producers, the EU plans a 15% tax on aluminum scrap exports.