MARKET WRAPS

Stocks:

European shares fell Thursday as investors awaited the European Central Bank's policy decision later in the day.

The ECB is largely expected to keep rates on hold when it announces its decision at 1215 GMT but markets are pricing in an 84% chance of a 25 basis-point rate rise in September, LSEG data show.

" Markets will be very attentive to clues for September , which features updated forecasts," KBC Bank said.

Investors will also be keen to hear the ECB's response to the renewed rise in oil prices stemming from the escalation in the U.S.-Iran conflict.

Oil prices climbed again Thursday, with Brent crude reaching $98 per barrel, after Yemen's Houthis claimed the attacks of two Saudi oil tankers in the Red Sea.

"The U.S.-Iran conflict has shown no sign of easing, and there's still no indication of any emerging peace deal either," Deutsche Bank said.

U.S. Markets:

Stock futures were down Thursday as investors continue to worry over AI spending.

Investors now await the Federal Reserve's meeting next week for more cues on the monetary policy outlook. While the U.S. central bank is widely expected to keep rates unchanged this month, traders expect at least one rate hike by the end of the year.

Forex:

The euro rose ahead of the ECB's policy decision later in the day.

The dollar eased in the absence of fresh catalysts to propel the currency higher.

Sterling could continue to hand back recent gains if U.K. short-dated rates drift lower and fiscal risks return, ING said.

Bonds:

Eurozone government bond yields edged higher in opening trade.

Eurozone government bond markets may be relieved

on Thursday as the ECB is set to remain on hold and President Christine Lagarde not pre-committing to a September rate hike, Commerzbank said.

Treasury yields across maturities were trading at or near multimonth highs in early trade, only marginally higher on the day, as oil prices continued rising.

There is increasing focus on the outright level for government bond yields, such as the 30-year Treasury yield, Danske Bank said.

Within euro fixed income markets, the two- to five-year segment currently offers the most compelling risk-reward profile

, Carmignac said.

Energy:

Oil prices extended gains for a fifth consecutive session after the U.S. carried out another round of strikes on Iran and unverified reports said Houthi rebels targeted two tankers in the Red Sea, fueling concerns over disruptions to another key shipping route.

In early trading, Brent crude climbed 4.6%, while WTI futures rose 3.4%.

Metals:

Gold prices fell after reaching a two-week high on Wednesday, as escalating tensions in the Middle East drove oil higher, fueling concerns over inflation and interest-rate hikes.

Copper

Copper was higher in early trading. Signs of supply tightness are lending support, said ANZ.

Iron

Iron ore rose in early trading. The global surge in iron-ore shipments during the first half of the year has largely run its course, Nanhua Futures said.

EMEA HEADLINES

Nestle Sells Half of Waters Unit to Platinum Equity in $3.4 Billion Joint-Venture Deal

Nestle agreed to offload half of its water unit-home to Perrier and San Pellegrino-to private equity group Platinum Equity in a $3.4 billion deal as it continues to shoulder hefty costs from its restructuring efforts.

The Swiss consumer-goods company said it would create a joint venture with billionaire Tom Gores's Platinum Equity and shed a 50% stake in its Waters and Beverages business for 3 billion euros in cash ($3.42 billion). The new business-called Peranel-is valued at 4.9 billion euros, including cash and debt, with the deal expected to close in the first half of next year.

AstraZeneca Wins EU Approval for Breast-Cancer Drug as U.S. Review Continues

AstraZeneca secured European Union approval for a new breast-cancer treatment, opening a big market for the drug as U.S. regulators continue to review the company's application.

The U.K. drugmaker said Thursday that the medicine, known as camizestrant and marketed as Etcamah, was approved in the EU as part of a drug combination to treat adults with a type of advanced breast cancer. The EU nod follows earlier approvals in Japan, the United Arab Emirates and Saudi Arabia, it added.

Shares of SpaceX Supplier STMicroelectronics Slump Despite Boost to AI Data-Center Sales Goal

STMicroelectronics shares plunged even though the European chip maker raised its data-center revenue target for a second time this year as the race to build artificial-intelligence infrastructure keeps adding fuel to semiconductor demand.

The group, which counts Apple, Elon Musk's Tesla and SpaceX among its clients, said revenue from data centers should grow above $1 billion this year and well above $2 billion next year compared with prior guidance of about $1 billion in 2026 and roughly $2 billion in 2027.

Dassault Aviation Shares Jump on Strong Sales, Profit Boost

Dassault Aviation shares climbed after the French aerospace group posted a strong set of sales and earnings for the first half of the year despite booking sharply lower orders.

Sales grew to 4.16 billion euros ($4.75 billion) from 2.85 billion euros a year earlier. Analysts had forecast 3.33 billion euros in sales, according to Visible Alpha. Meanwhile, operating profit increased to 330 million euros from 180 million euros, also well above analysts' forecast of 243 million euros. Figures are adjusted for gains and losses from hedging instruments, foreign exchange derivatives and other items.

GLOBAL NEWS

Global Household Wealth Jumped in 2025, Raising Stakes for Profitability of AI

Global household wealth surged last year as expectations of bumper profits from artificial intelligence pushed equity prices to new highs, but that has raised the stakes for the new technology and threatens an economically damaging correction should it disappoint.

According to a report published Thursday by the McKinsey Global Institute, household wealth grew to $570 trillion in 2025, an increase of 7.3% from 2024. That was a faster rise than the 5.9% average recorded since 2000, and was unusual in other respects.

How Wall Street's Bots Are Cashing In on Trump's Truth Social Posts

President Trump's Truth Social is selling stock market traders superfast access to his posts on the platform. Wall Street was already in on that game.

Many big investment firms have developed automated systems to monitor Truth Social, detect important keywords and take action-often within a fraction of a second-such as initiating or canceling positions, traders said.

The bull market faces higher likelihood of a Fed rate hike as Iran crisis intensifies

The bull case for stocks suddenly looks more fragile as the Iran war intensifies, oil prices rise and anxiety builds in the U.S. bond market about possible Federal Reserve rate hikes.

Tech stocks have been the main driver of the bull market as its four-year anniversary nears in October. Pockets opened up when the rally expanded beyond tech, signaling an economic backdrop and a healthier bull market that could last longer.

U.S. Surges Forces Toward Middle East, Giving Trump Options to Expand Iran War

WASHINGTON-The U.S. is surging forces, medics and weaponry to the Middle East to give President Trump more muscular military options as he considers expanding the conflict against Iran, according to people familiar with the matter.

In the past week, special-operations forces have deployed to the region from their U.S. bases, according to flight-tracking data and U.S. officials. Squadrons of jet fighters have been staged across the Middle East, and bomber aircraft at bases in the U.S. and U.K. are on high alert to ramp up operations, according to one of the officials.

Carney Has Tried the Carrot and the Stick With Trump-but Neither Is Working

TORONTO-Prime Minister Mark Carney swept to power promising an "elbows out" stance against President Trump's tariff threats and rhetoric, vowing he would never accept a bad trade deal.

Sixteen months later, Carney says he has avoided making a bad deal but critics say it has come at a cost: A series of trade concessions to the U.S. that are beginning to add up.

Can Lina Khan Make Peace With New York's Business Community?

New York City Mayor Zohran Mamdani has kept the city's business leaders waiting to see his plan to grow the local economy.

This week, the city's business elite received an unexpected surprise when Mamdani named a new chair of the city's powerful Economic Development Corporation: Lina Khan, the 37-year-old who made her name crusading against the world's largest corporations as head of the Federal Trade Commission during the Biden administration.

Trump Says U.S. Will Bomb Iran's Power Plants, Bridges if Tehran Strikes Ships

WASHINGTON-President Trump threatened to destroy Iranian infrastructure if Iran attacks vessels transiting the Strait of Hormuz, in the latest sign he is planning to escalate the conflict.

Trump wrote on Truth Social Wednesday that the U.S. will "bomb and destroy ONE BRIDGE OR POWER PLANT," including infrastructure in or near Tehran, every time Iran shoots at a ship in the strait.

Write to priscila.barrera@wsj.com

Write to us at newsletters@dowjones.com

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

July 23, 2026 04:57 ET (08:57 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.