Iran Conflict Continues to Impact Global Markets Amid Ongoing Tensions
The ongoing conflict in Iran continues to impact global markets, with the US military launching airstrikes on multiple sites on Qeshm island and southern provinces. The attacks came after President Trump vowed a hard response to yesterday's attacks on US bases in Jordan. WTI Crude oil prices are off their highs but still settling above $80 per barrel.
Samsung reported its final Q2 results, with stock remaining flat due to guidance for DRAM growth in mid-single digits. SK Hynix, a major memory maker, continues to struggle, losing another 5% today and cratering by 30% in just five days. However, Advantest saw a significant gain of 11% on revised upwards guidance due to stronger-than-expected demand for AI inference-related ASICs, CPUs, and DRAM.
The US Fed's 'hawkish hold' with no material revisions to its statement was notable for the message and tone struck by Chair Kevin Warsh at his press conference. Warsh emphasized the importance of allowing markets to 'play the ball, not the referee,' pointing out that the market has effectively priced in two hikes without the Fed moving at the front end of the curve.
Japan's cabinet cut FY26 GDP growth to 0.9% and raised FY26 CPI outlook to 2.2%. Japan PM Takaichi ordered a lowering of National Sales Tax on food to 1% from 8% for two years from April 2027.