Public Markets 3h Briefing
×Last updated: July 28, 2026, 2:30 AM ET
Asian Equities Decline Amid AI Spending Doubts and Chip Rout
Asian stocks slid on Tuesday, led by South Korean markets, as concerns over artificial intelligence spending grew. The selloff in chipmakers amplified turmoil bloomberg.com in South Korea, forcing multiple trading suspensions. Taiwan's five-year bond yield climbed to a nearly two-decade high bloomberg.com, fueled by a weak 20-year bond sale and expectations of a central bank rate hike.
European Markets Navigate Earnings, Tariffs, and Sector Challenges
The FTSE 100 faced pressure bloomberg.com from a chip stock selloff as a flood of earnings reports hit the market. Mercedes-Benz sales guidance wsj.com for the year, citing a worsening Chinese market and expecting lower group revenue. European wind turbine makers ft.com to bolster competitiveness against Chinese rivals, potentially under updated EU guidelines. Meanwhile, officials are hesitant to target an Irish plant accused of supplying Russia's war industry due to fears of disrupting the bloc's aluminum supply chain as reported ft.com. Hungary's improving relations with the EU ft.com for foreign funds, though a global bond sell-off driven by high energy prices raises questions about yield sustainability.
US Companies and Markets React to Economic Trends and Geopolitical Factors
Nvidia backing $50bn ft.com for a Texas data center utilizing its chips, as CEO Jensen Huang leverages the company's balance sheet to support the AI computing market. In the automotive sector, BYD is challenging ft.com Toyota in Japan's "kei" car market with a new EV, aiming to become the world's largest automaker. Investors are reportedly snapping up property bundles as housebuilders offer discounts, while cautious consumers remain on the sidelines according to reports ft.com. The UK restaurant industry is rushing to install ft.com air conditioning systems, facing lengthy planning application processes. Scottish data centers are also facing backlash from communities concerned about electricity and water strain, rural landscape impact, and limited local job creation despite boosting tech giant profits as noted ft.com. Mundane trading strategies, particularly betting on index rebalances ft.com this year. The UAE has quietly rebuilt economic and diplomatic ties with Iran, while also deepening defense links with Israel and the US in a bold gambit ft.com.
Investment Landscape and Corporate Dealmaking
Ares Management has held talks ft.com to acquire Leonard Green & Partners, a deal that would more than quadruple the size of its private equity business. This comes as one of Wall Street's premier private lenders ft.com to acquire one of the oldest and most profitable private equity firms. India's software stocks are set for their biggest monthly outperformance over global chipmakers, indicating a shift by investors away from AI trades into beaten-down information technology stocks. Funds managed by Hefei's local government have seen gains of 5,000% ft.com from the CXMT listing, marking unexpected winners in China's chip IPO market.
Global Economic and Geopolitical Currents
Tariffs and Treasury yields are under scrutiny ft.com as re-equitization trends emerge. Tokyo is planning to bloomberg.com for Japanese companies investing in overseas oil pipeline projects, including in the Middle East, to bolster alternative energy sources. Government-backed financing is deemed necessary to attract private investment and break China's dominance over critical mineral production according to a report ft.com. President Trump's ability to influence oil prices through rhetoric ft.com as the Iran conflict continues, suggesting verbal intervention may no longer be sufficient to suppress prices.