International markets were mixed as earnings season approaches full swing. Wall Street’s main benchmarks were lifted by gains in the Magnificent Seven, while Europe advanced despite downbeat earnings and unchanged interest rates.
The S&P 500 and NASDAQ touched record highs following strong results from Alphabet, which drove investor optimism. The DOW fell -0.6%, the S&P 500 increased +0.2%, and the NASDAQ rose +0.3%. Alphabet gained +1.6% after the Google parent boosted confidence that heavy investment in the AI race is paying off. Microsoft, Nvidia, and Amazon all gained +1.0%. Tesla sank -9.0% after Elon Musk warned of ‘rough quarters’ ahead as the government cuts support for EV makers. The stock has shed roughly -25.0% in 2025. UnitedHealth fell -3.7% after the insurer announced it was cooperating with the DoJ on its investigation of Medicare practices. IBM lost -8.0% after its second-quarter results disappointed investors. American Airlines also dropped -8.0% after it forecast a large 3Q loss. The US two-year yield added +4bp to 3.93%, while the 10-year yield gained +3bp to 4.42%.
The pan-European Stoxx 600 climbed +0.2%, while the FTSE 100 rose +0.9%, despite the ECB retaining its interest rate for the first time in a year. The ECB held this key rate steady after policymakers decided that price pressures were continuing to ease and that the economic environment was still highly uncertain due to the trade war. Reckitt Benckiser gained +10.0% after the healthcare giant upgraded FY guidance. Howden Joinery increased +9.0% after producing strong 1H earnings. Vodafone Group gained +3.0% after the telecom powerhouse launched a €500 million share buyback programme. Deutsche Bank added +9.0% after releasing strong earnings, which saw second-quarter profit reach €1.49 billion compared to a €143 million loss the prior year. STMicroelectronics plummeted -17.0% after it posted a loss in 2Q following low revenue.
Australia's ASX 200 lost -0.3% after the Reserve Bank diminished hopes for a rate cut in August. Governor Bullock said the high unemployment rate in June would not change the board’s decision to retain the interest rate at 3.85%. Bullock said that other labour market indicators also warned of upside risks to inflation numbers. Macquarie lost -5.1% after the investment bank announced that its FY26 profit was lower than a year ago this quarter. CFO Alex Harvey is also stepping down, passing the reins to Frank Kwok effective 31 December. Fortescue jumped +4.3% after the iron ore miner produced impressive June-quarter results. Production, costs, and net debt were all above market expectations by large margins. The NZX 50 gained +0.1%. Japan’s Nikkei 225 gained +1.6% to lead the Asian indices. Hong Kong’s Hang Seng increased +0.5%, while China’s CSI 300 rose +0.7% to follow Japan closely. The Shanghai Composite and the Kospi added +0.5% and +0.2% respectively.
WTI crude added +1.5% to US$66.24/bbl, gold fell -0.5% to US$3,370.89/oz, iron ore rose +0.2% to US$98.27/MT.