MARKET WRAPS
Stocks:
European shares mostly slid Wednesday while oil prices remained elevated as hopes of a quick resolution to the Iran-U.S. conflict dwindle.
Brent crude was trading just shy of $86 a barrel after the U.S. reinstated its naval blockade on Iran.
"Although Trump withdrew a proposal to impose transit fees on ships using Hormuz , the renewed conflict has pushed oil prices to their highest level in about a month, while broader regional tensions intensified following Houthi attacks on Saudi Arabia," MUFG said.
Investors have priced in increased prospects of interest-rate rises in the coming months from major central banks as a result. However, U.S. inflation data for June were weaker than expected, increasing investor confidence that the Federal Reserve won't hike rates in July.
Approaching midday, the Stoxx 600 edged lower, with the DAX, the CAC 40 and the FTSE 100 also falling.
Defense stocks and miners lost steam, even as the technology sector strengthened after ASML earnings . Europe's most valuable listed company lifted its annual sales guidance for the second time as the race to build artificial-intelligence infrastructure turns chips into a hot commodity.
Luxury stocks were also on the rise after Switzerland-based Richemont reported sales for its fiscal first quarter that came ahead of expectations .
U.S. Markets:
Stock futures were mostly higher following softer-than-expected U.S. inflation.
Attention now turns to wholesale inflation data at 1230 GMT and the second day of Fed Chairman Kevin Warsh's testimony before Congress after he reiterated his commitment to price stability Tuesday.
Forex:
The euro rose. The currency's gains against the dollar in response to Tuesday's lower-than-anticipated U.S. inflation data are likely to be limited, ING said.
The dollar remained weaker after Tuesday's lower-than-forecast U.S. inflation data dampened expectations for the Fed to raise interest rates.
Bonds:
Eurozone government bond yields rose in opening trade, tracking the direction of Treasury yields.
Eurozone government bond markets have better chances to stabilize on Wednesday while oil price dynamics remain in the driving seat, Commerzbank said.
Treasury yields rose in early trading but remained below Tuesday's high, after the June CPI print missed expectations, pushing yields lower by the end of the day.
Energy:
In early European trading, Brent crude rose 1.2%, while WTI was up 1.1%.
Metals:
Gold edged lower
after climbing more than 2% in the previous session as investors balance a softer-than-expected U.S. inflation print and risks stemming from higher energy prices linked to the Iran war.
Iron
Iron ore strengthens in early trading hours, amid strong demand from China. The ferrous metal is getting a boost from Chinese trade data showing strong demand in the country, ANZ Research said.
EMEA HEADLINES
ASML Shares Jump After Chip-Machine Supplier Raises Guidance Again on AI Demand
ASML Holding shares climbed after the company lifted its annual sales guidance for the second time and said it would boost output of its semiconductor-making machines in the coming years as the race to build artificial-intelligence infrastructure turns chips into a hot commodity.
Shares in Amsterdam gained more than 6% on Wednesday, solidifying ASML's lead as Europe's most valuable listed company, above names such as Wegovy maker Novo Nordisk, luxury giant LVMH Moet Hennessy Louis Vuitton and Germany's Volkswagen. ASML stock is up nearly 80% since the year began and shares have more than doubled over the past 12 months.
Richemont's Shares Surge After Sales Beat
Shares in Richemont jumped after the Switzerland-based luxury company reported sales for its fiscal first quarter that came ahead of expectations.
The group, which houses high-end brands including Cartier and Van Cleef & Arpels said Wednesday that it made sales of 6.33 billion euros ($7.23 billion) for the quarter ended June 30. The result came ahead of Visible Alpha consensus of 5.89 billion euros.
Rio Tinto Iron Ore Shipments Rise; Copper Cost Guidance Lowered
Rio Tinto reported a 7% rise in second-quarter iron-ore sales from its Australian mining operations to the highest since 2020, while reducing annual cost guidance for its copper business.
The company, which is one of the world's biggest iron-ore producers and makes most of its money from sales of the steel ingredient, said it shipped 85.3 million metric tons of iron ore from its Pilbara operations in the three months through June.
Antofagasta Backs Guidance on Expectations of Higher Copper Output in Remainder of Year
Chilean copper miner Antofagasta said second-quarter copper production held broadly steady, and backed its full-year guidance as it expects a pickup through the remainder of the year.
The miner said Wednesday that it produced 142,000 metric tons of copper in the second quarter, a 0.7% decline from the previous quarter. Net cash costs rose almost 26% to $1.36 a pound.
GLOBAL NEWS
Blockbuster Stock Sales Are Threatening to Overwhelm the Bull Market
The rush for cash by some of the world's largest companies is putting the long bull market at risk.
SpaceX's record $75 billion public offering. Alphabet's $85 billion equity raise. A $26 billion-plus sale of American depository receipts from the South Korean chip-making company SK Hynix.
China's Economy Grows at Weakest Pace Since 2022
China's growth slowed in the second quarter of the year to the weakest pace in more than three years, as surging exports buoyed by the AI boom failed to compensate for a weak domestic economy and sluggish consumer spending.
China's gross domestic product expanded 4.3% in April to June from a year ago, according to official data released Wednesday, down from 5.0% in the first quarter of the year. This marks the slowest growth since the end of 2022, when the country was grappling with the economic fallout of the Covid-19 pandemic.
Australia Plans to Govern Use of Water, Power for AI
SYDNEY-Australia plans to require data centers to underwrite their electricity and water supplies, as the government seeks to govern the growing artificial-intelligence industry.
Prime Minister Anthony Albanese said that the government will soon introduce a set of standards for AI providers to "ensure AI works in Australia's interests."
China Aggressively Patrols Disputed Waters. Now the U.S. Coast Guard Is Moving In.
SINGAPORE-U.S. Coast Guard ships previously deployed in the Middle East are now operating out of Singapore and the Philippines to help challenge China's assertion of power in the Pacific.
The six 154-foot fast-response cutters are part of the Coast Guard's reimagined "expeditionary cutter squadron," which can be sent anywhere in the world. Their first deployment is the western Pacific, where tensions have run high for years as China escalated a so-called gray-zone campaign to project control around Taiwan and the disputed waters of the South China Sea.
The U.S. and Iran Reckon With Shrinking Options to End the War
WASHINGTON-With the U.S. and Iran slugging it out over the Strait of Hormuz again, each nation is running out of time to achieve its goals. The question is whose clock expires first.
President Trump would prefer a resolution before the November midterm elections and before oil prices surge back to painful levels for Americans. Tehran is hoping it can outlast Trump before a reimposed U.S. naval blockade cripples its already reeling economy-and without provoking another large-scale American and Israeli attack aimed at toppling the Islamic government.
Pressure Builds Over Israel's Treatment of Palestinian Prisoners
As Hamas fighters swarmed into Israel on Oct. 7, 2023, the power suddenly went out in a remote prison in the Negev Desert.
When the lights briefly came back on a few hours later, a new era of hard-line policies had begun. In the wake of Hamas's attack-which left some 1,200 in Israel dead and around 250 as hostages-the thousands of Palestinians held at Lavi prison in the Negev and other prisons across Israel now faced harsher conditions. Thousands more joined them, swept up in raids amid the ensuing war.
Ukraine Sea Drone Sinks Russian Ship Near Compound Said to Be Linked to Putin
Ukraine said one of its naval drones on Tuesday sank a Russian patrol ship docked in the Black Sea resort town of Gelendzhik, close to a luxurious compound allegedly linked to Russian President Vladimir Putin.
At least one domestically produced Sargan-3000 sea drone struck a ship called the Emerald, killing some crew members and injuring others, Ukraine's navy said in a post on social media.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
July 15, 2026 04:56 ET (08:56 GMT)
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