The United States said negotiations with Iran will continue despite renewed hostilities in the Strait of Hormuz, signaling diplomatic channels remain open even as regional risks keep energy and markets on edge.
Corporate and capital‑markets moves highlighted the day. South Korea’s SK Hynix raised about $26.5 billion through an American Depositary Receipt offering — the largest U.S. offering ever by a foreign company — underscoring continued global investor appetite for semiconductor assets.
Policy makers took steps to shore up domestic markets. Japan’s finance minister urged pension funds to increase home‑market allocations as part of efforts to support the yen. Beijing pushed the yuan firmer, with the People’s Bank of China setting the reference rate below 6.8 per dollar for the first time since 2023.
Europe’s economic picture showed mixed resilience. France narrowly avoided recession as GDP rose 0.2% in 2Q26, while Spain’s economy minister Carlos Cuerpo said there is “a window of opportunity” to pursue joint EU debt measures.
In corporate strategy, Volkswagen is weighing a drastic cut to its Chinese line‑up as sales there decline, including consideration of halving its model range to streamline costs and focus on profitable segments.
Market moves were subdued: European equities traded flat. Japan and Hong Kong advanced about 0.5%, while mainland Chinese shares corrected roughly 1.5%. U.S. futures pointed to a modestly weaker open, down about 0.5%, with Brent crude trading near $76 a barrel.
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