Public Markets 3 Days

Last updated: July 18, 2026, 2:30 AM ET

Geopolitical Tensions Escalate, Impacting Oil and Shipping Markets

The ongoing conflict between Iran and the U.S. has escalated significantly, leading to strikes across the region and a near halt in shipping through the Strait of Hormuz as attacks on supertankers surged. This disruption has pushed oil prices to their highest level in a month. Hedge funds have responded by piling into bullish bets on Brent oil at the fastest pace in almost a decade, dampening expectations of a sustained recovery in shipments. U.S. oil rig counts have achieved their longest streak without a decrease in activity since 2022, supporting production amid higher prices. Total Energies expects earnings to be boosted by the war-fueled price rally, though income from liquefied natural gas is projected to fall sharply. Renewed Hormuz tensions also raise the chances of a pricey winter for Asia and Europe, which could compete for LNG cargoes.

China's Economic Ambitions and Global Reach

China is urging better cooperation with Kyrgyzstan on its green minerals industrial chain and calling for the protection of Chinese companies' rights. Shenzhen Inovance Technology Co. Ltd. is considering European acquisitions, aiming to compete with established industrial players like Siemens AG. Meanwhile, China seeks stable and transparent mineral rules from Indonesia. Chinese solar cell exports, however in June, indicating weakening overseas demand after an earlier surge in shipments. China's Moonshot AI has unveiled its Kimi model in artificial intelligence, and Xi Jinping has pitched "openness" in a bid to shape AI development as a global collaboration. Huawei is also aiming for growth, with Malaysia moving into battery production.

AI Boom Fuels Tech and Financial Markets, Amidst Volatility

Investments in semiconductors are fueling significant revenue growth for Wall Street banks. AI chip startup Etched is reportedly in talks for a $20 billion valuation, while also raising capital at a $10 billion valuation in a separate round. This AI-driven boom has seen Apple briefly leapfrog Nvidia as the world's most valuable company as shares escape the sell-off. However, China's Moonshot AI has also added fuel to the chip selloff, capping a brutal week for once-favored stocks. The AI upheaval is crushing retail traders crowding into leveraged funds as a surprise breakthrough impacts markets, reviving memories of last year's "DeepSeek moment." Despite the volatility, energy IPOs are surging as investors hunt for ways to play the AI boom. Big tech firms like Oracle are turning to bonds to finance their AI data centers, although Oracle's credit risk has hit a record high amid concerns about its AI investments as profitability is questioned.

London's IPO Market Shows Resilience Amid Global Trends

The London IPO market is performing better than it appears, on course for its best year for new listings since 2021, despite comparisons to New York. Superdrug owner AS Watson, however, is considering delaying its planned London IPO, originally aiming for a dual listing this autumn. Meanwhile, accounting services firm Baker Tilly Advisory Group is preparing to sell about $3 billion in debt markets to refinance private credit loans. Latigo Biotherapeutics Inc. has filed for an initial public offering, joining a growing list of biotech firms considering going public this quarter. Howden Group is in talks to raise several billion pounds in new private capital as it chases an IPO by 2030.

US Markets Navigate Political Uncertainty and Economic Shifts

The WSJ Dollar Index fell 0.11% this week, though it rose for a second consecutive session. Bond markets may eventually face a reckoning due to concerns over potential damage from Donald Trump's policies. Trump continues to pursue a deeper bond with China's leader despite hostile speech, with Chinese officials seemingly believing his accusations of election interference were domestic politics not foreign policy. Multiple investigations have refuted Trump's claims of widespread fraud altering the 2020 election outcome as investigations found no evidence. Trump's Homeland Security Chief has threatened election officials with prison time. Meanwhile, U.S. natural gas futures have inched up ahead of storage data as the weather warms slightly.

Corporate Dealmaking and Regulatory Scrutiny

Telecom Italia SpA’s board is leaning toward endorsing Poste Italiane SpA’s €10.8 billion ($12.4 takeover offer as fair as a bid is considered. The U.K. antitrust watchdog has launched an initial merger probe into Danone’s proposed $1.2 billion acquisition of Huel to examine competition. In the financial services sector, smaller deals involving regional banks and wealth managers are driving acquisitions. PwC partners are in line for near-record annual pay of £900,000 as payouts rise, despite a challenging consulting market. The U.K. regulator's new short-selling disclosure rules have been marred by data errors. In a move to attract retail investors, the sole stock exchange in the Philippines is preparing a slew of measures, including new exchange-traded funds to boost trading.

Economic Indicators and Consumer Trends

Treasury markets eked out a gain this week as supportive inflation data prevailed over a rebound in oil prices. U.S. gasoline prices are heading towards $4 a gallon again. Americans are spending, and not just on necessities, with lower gas prices providing relief before they began to creep higher again. Sweetgreen Inc. shares surged, halting a four-day skid, after U.S. regulators traced a parasite outbreak to shredded iceberg lettuce. This outbreak has put big lettuce brands in a PR crisis mode. India is taking steps to reduce key imports to protect supply chains and ease pressure on its currency. French power exports surged to a record in the first half of 2026.

Political Developments and Campaign Finance

Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney will attend the World Cup final with Donald Trump following an invitation. The U.S. and Iran are creeping toward a wider war, while U.S. startup activity is booming as conflict escalates. Democratic Senate candidates are trouncing Republicans in fund-raising, raising more cash in every key Senate race except Iowa in the first half of the year. California's public unions are using the AI market boom as an excuse to pad benefits, leading the state to reverse its pension reform as benefits are boosted.

Brand Strategies and Market Performance

Burberry reported healthy U.S. demand, though shares fell as the Iran war impacted tourist travel and spending in the Middle East as luxury sales are affected. Chanel offices have been searched by Italian authorities in a labor abuse probe as the luxury group cooperates. Anglo American is poised to sell its De Beers diamond business to a former CEO as a preferred bidder is identified. Martin Shkreli is back, shorting stocks and taking on everyone as he re-emerges. SpaceX's fall from its post-listing peak has poured cold water on the market for newly public companies. Verizon plans to cut about 3,000 jobs and divest some retail stores as it restructures.