Macro update
Oil prices jump as Middle East tensions escalate: Brent crude rose more than 3% to $76.54 a barrel after renewed US airstrikes on Iran and the reimposition of sanctions on Iranian crude exports fuelled concerns that the fragile ceasefire could unravel, with global inventories already depleted following months of conflict.
Semiconductor stocks retreat as AI optimism fades: Chipmakers came under renewed selling pressure across Asia and the US after Samsung Electronics’ strong earnings failed to meet elevated market expectations, with Micron falling 4.7%, Sandisk dropping 7.3% and the Philadelphia Semiconductor Index declining 4.65%.
South Korea’s KOSPI enters bear market territory: The index fell 5%, leaving it more than 20% below last month’s peak, although it remains around 70% higher for the year as investors continued to take profits in AI-related stocks.
Treasury yields rise on renewed inflation concerns: US 10-year Treasury yields climbed around three basis points to a one-month high of 4.565%, while 30-year yields moved above 5% as higher oil prices reinforced fears of persistent inflation.
Gold edges higher ahead of the Fed minutes: Spot gold gained 0.6% to $4,128.28 an ounce, recovering from a near one-week low as investors awaited the release of the Federal Reserve’s latest meeting minutes, with markets increasing the probability of a September rate hike to above 63%.
Dollar strengthens on safe-haven demand: The US dollar advanced to a one-week high, pushing the euro back to just above $1.14 and lifting USD/JPY beyond 162, increasing speculation that Japanese authorities may respond with currency intervention.