Public Markets 8 Hours

Last updated: August 4, 2026, 2:31 AM ET

European Banking and Financials

HSBC posted a sharply higher second-quarter profit, with net profit jumping 68% year-over-year to $7.69 billion. The London-based bank also announced a share buyback program of up to $1 billion. Europe's largest saw its profits boosted by its wealth management and insurance businesses in Hong Kong. HSBC’s record-breaking rally faces a test from its latest earnings, as investors focus on capital returns and buybacks.

Airlines and Transportation

Lufthansa tightened its guidance for 2026 following a profit slump in the second quarter. The carrier group reported a net profit of €123 million for the period, a significant decrease from €1.01 billion in the prior year. Deutsche Lufthansa warned of heightened uncertainty for its full-year outlook due to volatility in jet fuel prices and shortened booking cycles, which complicate profit-boosting efforts.

Pharmaceuticals and Healthcare

Bayer AG reported better-than-expected profit for the second quarter, driven by a strong performance in its crop science division. AstraZeneca is in talks with Bristol Myers Squibb regarding a potential deal that could create the world's fourth-largest drugmaker by market value, with a reported value of $400 billion. Novo Nordisk's chief executive officer, Mike Doustdar, stated that he is open to large deals and acknowledged that the group will experience failures as it tries to reduce its reliance on weight-loss drugs. Companies linked a top health official and her husband received £2 billion in public contracts, with Samantha Jones or her spouse holding financial interests in the G Square Capital private equity business.

Commodities and Mining

Iron ore near a 13-month low, with prices falling to levels that may threaten some higher-cost production operations. diamond industry misjudged the threat posed by lab-grown gems, according to the CEO of Anglo American, the owner of De Beers. Anglo American slashed the company's valuation and reported significantly lower prices for rough stones.

Asian Markets and Equities

Japanese stocks were higher in early trade, following gains in U.S. technology shares overnight. The Nikkei 225 index rose 0.4%, led by chip stocks. Chinese institutional investors have been actively buying gold in recent weeks, helping to halt the precious metal's decline and maintain prices above the key threshold of $4,000 an ounce. Singapore's dollar against its U.S. counterpart due to possible position adjustments, but may benefit from the yen's appreciation trend.

Currency Markets and Intervention

Japan's historic intervention with the United States to support the yen is shifting market focus to whether the currency can strengthen beyond 155 per dollar, a level strategists view as the key test for the rally's sustainability. Citigroup Inc. suggests that Japan possesses alternative tools to defend the yen without liquidating its more than $1.1 trillion U.S. Treasury portfolio, as its short-term debt holdings are dwindling. The bid to support Japan's currency signals a new era of U.S. "currency activism," indicating a readiness to counter trades that move against its interests. Coordinated intervention Japan to support its currency without selling off its U.S. debt holdings.

Energy Markets

Oil prices fell amid prospects for the reopening of the Strait of Hormuz, a critical waterway through which one-fifth of the world's oil is transported. Russia is expanding its shadow LNG fleet to circumvent EU sanctions, with a growing number of ships expected to help Moscow continue exporting liquefied natural gas when sanctions tighten next year.

Technology and AI

Palantir forecasts greater demand from U.S. groups for its AI software, reporting a 23% climb in American sales in its second-quarter results. Google's finance for Anthropic involves private credit, chip leases, and data center guarantees, underpinning a vast new model for AI spending valued at $200 billion.

Real Estate and Development

The Malaysia-based Forest City project, a $100 billion luxury development aimed at tech nomads and scammers, has faced new blows to its reputation following police raids.

Legal and Professional Services

Investor MML purchased a 27% stake in Mourant, a Jersey-based offshore firm that operates in tax havens globally, as part of a private equity rush for legal deals.

Global Trade and Geopolitics

Thousands of civilian workers remain stranded on ships at risk of attack by Iran, with some sailors held by the Iranian navy for over three months. emerging deal between Iran and Oman to reopen the Strait of Hormuz would address President Trump's urgent political problem by allowing ships to move again, but would grant Iran strategic leverage it did not previously possess. Prospects reopening of the Strait of Hormuz have led to a fall in oil prices.

US Politics and Policy

The Senate has advanced a bill to avert a government shutdown, with senators from both parties eager to avoid another spending conflict before the midterm elections, though the measure still requires House approval. California Democrats divided on how to implement a proposed tax on billionaires, with leaders endorsing a ballot measure for November but the party remaining disunited on the specifics.

International Relations and Diplomacy

Nicaragua's current situation serves as an example of what can occur when even dictators fear the prospect of a rigged election. The United States sent a flight carrying 147 deportees to Venezuela, marking the first such flight since the earthquakes, amid criticism over the deaths of deportees housed in a collapsed building during the June tremors.

Other Business and Market News

The Clorox Company reported fiscal fourth-quarter earnings that exceeded analyst expectations, despite lower sales volumes and additional costs associated with logistics and its recent acquisition. Whirlpool's focus on North America has tied its fortunes to the slumping U.S. housing market, following its abandonment of global ambitions. Mohegan Tribe lost a $1 billion casino project in South Korea that was intended to be a "transformational" development. Spain's stock market offers a potential escape for investors weary of tech stocks, although the country's relative isolation from the AI boom may not last. The UAE is heavily investing in land, ports, and influence across Africa, but its entangled goals come with a significant price.