The US and Iran exchanged strikes near the Strait of Hormuz as both sides wait on a proposed deal, underscoring how fragile the ceasefire remains and keeping risk sentiment on edge.
In a fresh trade standoff, President Trump set a July 4 deadline for the European Union to ratify a trade pact with Washington, warning that tariffs on European autos could rise from 15% to 25% if the bloc fails to comply — a move likely to roil transatlantic trade and industrial supply chains.
Meanwhile, Beijing’s outbound capital is reshaping the global investment map: Brazil surpassed the United States in 2025 to become the top destination for Chinese investment, reflecting growing economic ties between China and Latin America.
Earnings were mixed. Italy’s Intesa Sanpaolo beat expectations in 1Q26, driven by a surge in trading revenues, while State Bank of India outperformed on the back of robust loan growth, highlighting regional divergence in bank performance.
In tech, TSMC and Sony agreed to form a joint venture focused on image sensors, a strategic tie-up that could bolster supply-chain resilience for advanced camera components.
Economic data from Germany added a softer note: industrial production fell for a second consecutive month, underscoring lingering weakness in Europe’s manufacturing heartland. Markets reacted with profit-taking: European and Asian equities slipped roughly 0.5%–0.7%. US futures pointed to a slightly firmer open, and Brent crude traded near $100 a barrel. Traders will be watching whether escalating geopolitical and trade tensions, alongside mixed corporate and economic signals, tip sentiment further in the sessions ahead
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