Public Markets 3 Days

Last updated: July 21, 2026, 5:30 AM ET

Middle East Tensions Drive Oil Higher, Gold Gains

Crude futures settled higher amid escalating U.S.-Iran hostilities, with Brent oil over two previous sessions. Goldman Sachs warned that Brent could by the fourth quarter if disruptions in the Strait of Hormuz persist. Another tanker was attacked in the Strait of Hormuz as renewed hostilities emptied the waterway, while Houthi rebels threatened to blockade Saudi Arabia. The conflict has forced cash-strapped Asian nations like Pakistan and Bangladesh to shipments. Gold prices, however as mediators pushed for a U.S.-Iran ceasefire, pausing oil's rally. Gold touched its highest level in a week on dip-buying as traders monitored Middle East developments for clues on energy price impacts on inflation.

UK Politics and Policy Shifts

New UK Prime Minister Andy Burnham the high cost of living by ordering a cut in electricity taxes. Investors awaited further policy details from Burnham, with UK government bonds as weak economic data dimmed bets on higher interest rates. John Healey was named as the new Chancellor, filling a consequential post overseeing fiscal and economic policy. Lenders to Thames Water planned to offer a "golden share" to the UK government in a bid to avoid nationalization. Separately, shares in Mitie Group gained 40% after agreeing to be bought by facilities management group OCS for $4.2 billion.

Global Markets React to AI and Economic Uncertainty

U.S. stock futures rode a fresh wave of optimism, buoying indexes in Asia and Europe. However, equity investors were advised to after earnings season, with warnings about stretched sentiment and a fading fiscal impulse. China is mounting a broad effort to steady its stock market, with regulators and state-backed investors moving to after a sharp tech sell-off. China's "national team" announced stock purchases worth $9 billion to prop up the market. The Australian stock market has emerged as an unlikely haven from AI-driven volatility that has.

Corporate Dealmaking and Financial Performance

Shares in Mitie Group gained 40% after agreeing to be bought by facilities management group OCS for $4.2 billion. The deal marks the latest London-listed company to agree to a takeover. Julius Baer's net profits more than doubled to SFr673 million, with operating income jumping 26%. Var Energi agreed to a $1.3 billion deal to buy Blue Nord, increasing its exposure to European gas markets. Frasers Group's stake in Hugo Boss topped 30% following recent acquisitions. In the U.S., Icahn Enterprises agreed to sell auto-service chain Pep Boys to Mavis for $700 million.

Market Infrastructure and Regulatory Developments

The London Stock Exchange plans to introduce nonstop trading next year, opening a new venue outside regular market hours to. This move aims to better compete with 24/7 trading models. China is consulting companies on tightening export controls for AI models and chips to of advanced technologies. US authorities are investigating Mark Walter’s insurance empire, focusing on the nexus between insurance and private capital. In a notable earnings rebound, Julius Baer's net profits more than doubled to a record high, reflecting higher net commission and fee income.

Currency and Bond Market Movements

The euro was higher against the dollar, but could if energy prices remain elevated, according to ING. Eurozone government bond yields edged higher as renewed military hostilities in the Middle East raised the prospect of oil supply disruptions. Japanese insurance firms bought the most super-long government bonds in three years in June, adding to signs that demand from a key buyer is stabilizing. New Zealand's annual inflation accelerated to its fastest pace in over two years, bolstering the case for the Reserve Bank to execute back-to-back interest-rate hikes.

Sector-Specific Trends and Outlooks

Chip stocks in U.S. trading as the AI trade bounced back. However, analysts are maintaining bullish views on Kioxia Holdings despite a deepening share price correction, anticipating a resumption of its upward trajectory. Big Tech faces pressure to prove that AI spending is translating into tangible results, with Alphabet and Tesla kicking off earnings for the sector. Palm oil fell from a near one-month high following weakness in the crude and vegetable oil complex, denting the appeal of biofuels. European airline stocks rose following an escalation in hostilities between Iran and the U.S.

Emerging Market Dynamics and Challenges

Indonesia has begun marketing its inaugural yuan-denominated bonds in China's domestic debt market, as Southeast Asia's largest economy seeks to. Moody's Ratings remains concerned about policy uncertainty and fiscal sustainability risks in Indonesia, reinforcing its cautious outlook. Global investors have turned cautious on Indian bonds, with the rupee also under strain as slowing debt inflows coincide with renewed foreign selling in stocks. India's top private banks are betting on a sustained pickup in lending as more companies shift away from pricier bond markets. Emerging-market currencies gained, with Latin American names getting a boost from a drop in volatility.