Public Markets 3 Days

Last updated: June 29, 2026, 5:30 AM ET

Global Markets React to Geopolitical Tensions and AI Boom

Energy & Commodities

Oil futures edged higher amid reports of a potential halt to attacks in the Persian Gulf, with an American official stating the U.S. and Iran had agreed to cease hostilities in a key shipping lane. This eased concerns of further escalation, though traffic through the Strait of Hormuz persisted at a reduced level following earlier attacks. Despite the de-escalation, oil prices remained elevated on Sunday evening, trading around $72 a barrel, with FTSE 100 futures holding. However, corn futures slipped as U.S.-Iran hostilities eased, though traders monitored hot U.S. weather impacting crops. Pakistan is urgently seeking liquefied natural gas Hormuz flare-up chokes supply, while a helicopter operated by Saudi Aramco crashed in Ras Tanura, killing all 14 on board.

Equities & Corporate News

U.S. stock futures climbed as reports emerged of U.S. and Iran resuming peace talks, indicating a step back from escalating hostilities that had threatened a fragile ceasefire. This cautious return to risk sentiment was also reflected in early trading, though the tech-heavy Nasdaq Composite slipped 0.2% as broader AI-related fears offset relief from falling fuel prices. South Korean stocks rebounded as Samsung Electronics and SK Hynix unveiled massive investment plans in chipmaking, underscoring the nation's AI ambitions, which contrasts with the danger zone the Korean stock market has entered due to AI-driven volatility. In Europe, Spanish inflation unexpectedly held far above the European Central Bank's target, even after energy prices fell post-ceasefire.

British American Tobacco Plc is undertaking a significant workforce reduction, planning to cut about 5,500 jobs by year-end and outsource an additional 3,500 roles, amounting to roughly one-fifth of its global workforce as part of a cost-reduction and simplification strategy intensifying its turnaround program. This move affects approximately 9,000 employees in total. In telecommunications, BT and Verizon are forming an international joint venture, a 50:50 partnership serving over 3,000 customers in approximately 180 countries. This venture is a key part of BT's strategy to refocus on domestic operations, with the deal valued at $625 million in total.

Artificial Intelligence & Technology

The immense capital flowing into artificial intelligence is raising concerns about its impact on the broader economy, with some arguing that AI's demand is beginning to strain other sectors. This AI boom is simultaneously fueling significant investment in the U.S. power sector, driving a record $200 billion M&A surge as companies scramble to build the necessary energy infrastructure for data centers. This has also awakened the previously "sleepy" U.S. power sector, with companies engaging in a dealmaking blitz to meet demand. The demand for AI is creating an energy crunch, prompting investors to seek out new IPO winners, even for technologies that are not yet fully developed Baidu's CFO discussed the company's evolution into a full-stack AI player, spanning from internet search to chips, LLMs, cloud services, and autonomous vehicles.

South Korean chipmakers Samsung and SK Hynix plan a substantial $590 billion expansion in chip manufacturing, investing alongside the government to meet surging demand for memory chips driven by AI. This investment spree is a core part of South Korea's plan to solidify its position as a technological powerhouse as unveiled in a government briefing. However, the rally in Korean AI stocks has exposed structural vulnerabilities, pushing the market into a "danger zone" due to its unaccustomed exposure to significant swings as per Wall Street Journal analysis. In contrast, a Chinese tech ETF has seen record inflows from domestic investors, demonstrating resilient demand for Chinese technology despite a global semiconductor selloff.

Deals & Investments

UK private equity firm Bridgepoint Group Plc has agreed to acquire Florida-based Kayne Anderson Real Estate for $1.4 billion, marking its first foray into the U.S. property market as part of its expansion strategy. Prosus NV reported a more than doubling of its profit in the last fiscal year, surpassing analyst expectations, driven by growth in its e-commerce businesses and an increased valuation of its investments bets e-commerce pay off. The company is targeting a $5 billion share buyback program and further acquisitions to fuel its growth, seeking both outright purchases and minority stakes according to its CEO.

In the energy sector, Williams Cos. is reportedly in advanced talks to acquire rival natural gas pipeline operator Momentum Midstream for approximately $5.5 billion, which would represent one of its largest deals to date as it expands its midstream footprint. Magnolia Oil & Gas Corp. has emerged as the leading contender to acquire privately held Wild Fire Energy for over $4 billion, potentially marking its largest acquisition ever following competitive bidding.

Economic Outlook & Monetary Policy

European Central Bank Governing Council member Martins Kazaks indicated that multiple rapid interest rate hikes are unnecessary, suggesting a more measured approach to monetary policy tightening. Meanwhile, Spanish inflation unexpectedly remained significantly above the ECB's 2% target in its initial reading since the U.S.-Iran peace deal eased energy prices contrary to expectations. In India, Moody's Ratings stated that the country can accommodate a modest fiscal slippage this year without jeopardizing its investment-grade rating, anticipating that higher energy prices will bolster government revenue offering a stable outlook.

The Philippines has revised its economic growth targets downward and anticipates a weaker peso beyond President Ferdinand Marcos Jr.'s term in 2028, citing headwinds such as Middle East tensions and inflation projecting slower growth. The Singapore dollar consolidated against the U.S. dollar amid a generally cautious market sentiment. The New Zealand dollar is facing a subdued third quarter, pressured by a resurgent U.S. dollar and the lingering effects of energy price shocks from the Iran conflict on its domestic recovery facing growth headwinds.

Other Markets & Trends

The Philippine fintech unicorn, backed by Ant International, is seeking to raise up to $1.5 billion in an initial public offering, which could become the country's largest-ever listing aiming for a record IPO. Japan's IPO market has fallen to a 15-year low, with no immediate rebound in sight despite a surge in Tokyo's stock prices failing to ignite listings. In Hong Kong, commercial property prices for a tower unit have been cut by up to 57%, reflecting ongoing weakness in parts of the commercial real estate market amidst broader market struggles.

The U.S. Commodity Futures Trading Commission is conducting a broad investigation into the prediction market Polymarket probing its operations. Gold prices declined amid souring risk sentiment towards AI-related assets, which also impacted commodity markets. Separately, gold fell as fresh U.S.-Iran tensions stoked inflation concerns, straining a ceasefire that had previously tempered expectations after energy prices dropped to pre-war levels amidst renewed geopolitical worries. Sovereign wealth funds are increasingly shifting capital from public markets to private assets, including private credit and infrastructure, to capitalize on the AI wave and mitigate national security concerns seeking private investments.