US inflation eased for the first month since 2020, driven largely by weaker oil, with core CPI flat in the month — below the 0.2% consensus — sending the dollar lower and Treasury yields down as markets reassessed the Fed outlook.
China’s economy expanded 4.3% year‑on‑year in 2Q26, slightly below expectations of 4.5%, reviving speculation Beijing may step up stimulus measures to support growth. Meanwhile, reports surfaced that Chinese AI leader DeepSeek is weighing an IPO this year, underscoring continued investor appetite for mainland tech listings.
Chip‑equipment maker ASML raised sales guidance and outlined capacity expansion plans as AI demand supports robust demand for lithography tools. Shares jumped as much as 8% in Amsterdam before trimming gains to around 4%.
In contrast, IBM plunged about 26% — its steepest drop since 1968 — after reporting revenue below forecasts. Wall Street banks, by comparison, broadly beat estimates, bolstered by a trading boom in 2Q26.
Geopolitics remained a market driver. President Trump stepped back from plans to levy a 20% fee on traffic through the Strait of Hormuz after pressure from Gulf partners, but warned the US would continue strikes until the waterway is fully reopened.
Market moves were mixed: European and mainland Chinese equities held near flat, while Japan and Hong Kong rose just over 1%. US futures pointed to a modestly firmer open of under 0.5%, and Brent crude traded up about 1% near $84 a barrel.
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