Public Markets 3 Days

Last updated: July 15, 2026, 5:30 AM ET

Inflation Cools, Boosting Market Sentiment

U.S. stock futures climbed higher as lower-than-expected inflation data bolstered market sentiment, driving risk assets upward. This positive inflation print also led to a weaker dollar, which fell against a basket of currencies. Treasury yields tumbled as inflation fears subsided following the mild U.S. Consumer Price Index report. Gold, after an initial climb, retreated as investors weighed the softer inflation figures against risks from higher energy prices. Asian stocks broadly gained on the back of the encouraging U.S. inflation data, prompting markets to scale back expectations of further U.S. interest rate hikes. The Consumer Price Index slowed to a 3.5 percent annual increase in June, marking the largest monthly price drop since 2020.

Geopolitical Tensions and Energy Markets

Oil prices rose after the U.S. reinstated its naval blockade on Iran, with Brent crude nearing $86 a barrel. This development follows a U.S. decision to reimpose sanctions, potentially impacting Iranian exports. The renewed conflict in the Middle East, however, risks a return to high energy prices, even as some positive news on consumer prices emerged in June. U.S. natural gas futures but struggled to gain significant traction due to adequate domestic supply. Traders subsequently boosted bets on Bank of England and European Central Bank interest rate hikes following the surge in oil prices, which reignited inflation concerns. Meanwhile, India's trade deficit widened as uncertainty surrounding the U.S.-Iran conflict and shipping through the Strait of Hormuz clouded the outlook for global supply chains.

Corporate Earnings and Sector Performance

Luxury goods maker Richemont reported a surge in sales, driven by robust demand for its jewelry, with its Cartier brand outperforming peers with consecutive quarters of double-digit growth. In the technology sector, ASML raised its forecasts, signaling optimism about the durability of the artificial intelligence boom, which is fueling demand for chipmaking equipment. Shares of the Dutch company climbed 7% on the news. However, IBM's stock plunged to a record low, serving as a warning to the broader IT sector as AI demand begins to crowd out other spending. Wall Street banks, meanwhile, have unveiled, benefiting from the tech wave, though potential risks loom.

Real Estate and Construction Activity

UK housebuilder Barratt Developments announced a following pressure from an activist investor. The company reported an increase in pretax profit for the fiscal year, supported by rising house sales and prices. In a separate development, Thames Water warned about its, stating it could survive for 12 months but cautioning that liquidity might fall short before a recapitalization. The housing crisis has also become a retirement crisis, as homes are increasingly viewed as assets rather than just places to live.

Tech and AI Dominance

The artificial intelligence boom continues to reshape industries, with chipmaker CXMT seeking in what would be China's largest IPO since 2010, capitalizing on the demand for AI memory chips. Chinese AI developer DeepSeek is also preparing to next year to fund its costly research in a race against competitors like Anthropic. In the U.S., data center construction is booming, with Meta significantly scaling up its Louisiana data center project to 5 gigawatts of compute capacity, now costing more than $50 billion in total. However, this expansion comes with a substantial power cost, as data centers are expected to add billions in electricity charges across 13 states annually.

Financial Sector Developments

Payments startup Stripe and private equity group Advent have made a for PayPal, representing a 28% premium to its previous closing share price. The financial sector is also grappling with the implications of AI, with Royal Bank of Canada expanding its credit derivatives trading business in the U.S. and Europe, anticipating that AI-driven fundraising will fuel demand for hedging products from AI debt. Meanwhile, Wall Street banks are pushing back against the trillion-dollar stablecoin boom, now seeking to collaborate in the evolving cryptocurrency payments network.

Emerging Markets and Global Trade

Emerging market assets rallied after a cooler-than-expected U.S. inflation report prompted traders to pare back bets on imminent Federal Reserve interest rate hikes, thereby boosting demand for riskier assets. China's economy, however, grew at its slowest pace in years, with 4.3 percent growth in the second quarter reflecting a broad slump outside its export-oriented manufacturing sector. India has asked state-owned banks to intensify efforts to garner foreign currency deposits from its diaspora to bolster external buffers and support the rupee currency.

Company-Specific News and Deals

Antofagasta backed its guidance on expectations of higher copper output in the remainder of the year, with second-quarter production holding broadly steady. Alcoa has received international approval for a gallium production project in Australia, with a final investment decision reached by the company and the governments of Australia, Japan, and the U.S. to build a gallium production plant at its refinery. Circle has reportedly clashed with a Tether-backed fund over market manipulation concerns, detailing a long-running legal battle between Heka Funds and the $73 billion stablecoin group Circle.

Regulatory and Policy Shifts

The House in a rare display of bipartisan unity, though the bill faces an uncertain future in the Senate. In the UK, consumer groups have warned that proposed rules for the "buy now, pay later" market, valued at £14 billion, could exclude millions if lenders are not required to perform adequate affordability checks on borrowers. The EU faces a potential fight over directing carbon levy revenues to green industries, risking a dispute with member states over how emissions trading scheme revenues are spent at the bloc level.

Other Notable Developments

The U.S. military launched a seventh wave of strikes after Iran, following President Trump's announcement that he would replace proposed Strait of Hormuz cargo fees with Gulf investment. Oil futures settled off their highs after President Trump withdrew a plan to charge a 20% fee to cover the cost of protecting ships through the Strait of Hormuz from attacks. In a significant development for the UK's public markets, Airtel Africa is reportedly tapping more bankers for a rare London IPO of its mobile money business, a flotation that could raise around $1.5 billion in capital.