Market Review July 23: Brent Soars to $96, US10Y Yield Hits 2026 Highs (4.68%), and Kospi Jumps 3%
Global financial markets are showing mixed dynamics. The main drivers remain the escalation of the geopolitical situation in the Middle East, rising energy prices, and expectations regarding the European Central Bank's decision.
Global financial markets are showing mixed dynamics. The main drivers remain the escalation of the geopolitical situation in the Middle East, rising energy prices, expectations regarding the European Central Bank's interest rate decision, and the publication of important macroeconomic data in the US. At the same time, investors continue to assess the corporate earnings reports of the largest technology companies, which are putting pressure on the US stock market.
Big Tech Decline Weighs on the US While Europe Rises Ahead of ECB Decision
USA: American indices are trading predominantly in negative territory. The main source of pressure has been the reports from tech giants: Tesla shares fell nearly 4%, while Alphabet's stock lost over 2% due to a surge in capital expenditures on AI infrastructure.
Europe: The markets of the Old World are gaining between half a percent to one percent (DAX +309 pts, FTSE 100 +131 pts, CAC 40 +75 pts). Investors are pricing in the ECB's interest rate to remain at 2.25%, focusing on Christine Lagarde's rhetoric regarding inflation risks.
Rally in South Korea: Kospi Jumps 3% Thanks to Samsung and SK Hynix
Trading in Asia ended mixed. The key driver of growth in the region was the South Korean Kospi (+3%), boosted by explosive demand for shares of chipmakers Samsung and SK Hynix. The Japanese Nikkei 225 closed slightly down, while the Chinese CSI 300 maintained moderate positive dynamics.
Brent Oil Rips Towards $96 on Geopolitics, Gold Corrects
Oil: Tensions between the US and Iran, along with threats to shipping in the Red Sea and the Strait of Hormuz, continue to push oil prices higher. Brent reached the $95–96 per barrel range, while American WTI is trading around $88.
Gold: After hitting local highs, the prices of the precious metal have transitioned to moderate consolidation and are trading in the $4,100–4,130 per ounce range.
US10Y Yields Rewrite 2026 Highs at 4.68%
Bonds: The yield on 10-year US government debt (US10Y) surged to 4.67–4.68%, setting a new peak for 2026. The main reason for the rise has been increasing inflation expectations triggered by a surge in commodity prices.
Currencies: EUR/USD stabilized around 1.143, GBP/USD around 1.339, while the yen remains squeezed above 163 per dollar (USD/JPY). The dollar index (DXY) shows slight weakening.
Key Events of the Day (Kazakhstan Time, UTC+5):
| Region | Event / Publication |
|---|---|
| Eurozone | Announcement of the ECB's decision on the key interest rate |
| USA | Weekly report on initial jobless claims |
| Eurozone | Press conference of ECB management on further monetary trajectory |
Main Risks:
| — | Further escalation of military confrontation in the Middle East. |
| — | Sustained Brent oil prices above $95 and acceleration of global inflation. |
| — | Tight ECB comments and volatility of European assets. |
| — | Weak earnings reports from big tech and rising capex on AI. |
Summary: Financial markets remain cautious. European markets are supported by expectations of the ECB's decision, Asian markets continue to rise due to semiconductor manufacturers, while the US market remains under pressure from weak earnings reports of major tech companies and rising bond yields.