Oil surges as Iran tensions flare while AI chip selloff rattles Wall Street.
This week @ 15:20 pm Friday 17th July in London.
Markets:
- FTSE 100 rose 0.81% this week to 10,582.5, supported by a strong trading update from Burberry and encouraging UK employment data, which helped the index shrug off a global sell-off in technology and semiconductor stocks.
- S&P 500 fell 0.55% this week to 7,533.77, as a sharp reversal in chipmakers and renewed concerns over the sustainability of AI infrastructure spending weighed on sentiment.
- Nasdaq Composite fell 2.84% this week to 25,535.34, led lower by steep declines across semiconductor names amid fears that AI-related valuations have run ahead of fundamentals, compounded by reports that Alphabet’s next flagship AI model is running months behind schedule.
- STOXX Europe 50 was flat this week at 5,373.14, as strong results from chip equipment maker ASML failed to offset a broader European technology sell-off, though luxury and utilities stocks provided some support.
Bonds:
- UK 10-year gilt yields rose 6bps this week to 4.94%, as the renewed conflict between the US and Iran reignited inflation concerns and led markets to reassess the timing of Bank of England policy easing.
- US 10-year Treasury yields fell 4bps this week to 4.52%, as softer than expected US inflation data early in the week outweighed a later rise driven by higher oil prices.
Commodities:
- Brent crude rose 14.46% this week to $87.00/bbl, after the US resumed strikes on Iran and reimposed a naval blockade on Iranian ports, disrupting shipping through the Strait of Hormuz.
- Gold fell 2.80% this week to $3,998.40/oz, weighed down by a firmer US dollar and reduced expectations of near-term Federal Reserve rate cuts.
- Copper fell 0.64% this week to $6.24/lb, as broad risk-off sentiment tied to the Middle East conflict offset ongoing supply concerns from Chile.
FX:
- GBP/USD rose 0.29% this week to 1.3441, supported by resilient UK employment data even as broader risk sentiment stayed cautious.
- GBP/EUR rose 0.09% this week to 1.1749, with sterling underpinned by the interest rate differential between the Bank of England and the European Central Bank, and by the resolution of UK political uncertainty following Andy Burnham’s succession as prime minister.
Macro
- UK GDP grew 0.1% in May, reversing April’s 0.1% contraction and in line with expectations.
- US producer and consumer price data came in softer than expected earlier in the week, though retail sales and jobless claims figures continued to point to a resilient economy.
- The US resumed military strikes on Iran and reinstated a naval blockade on Iranian ports; Iran retaliated against US bases in neighbouring countries, extending the disruption to Strait of Hormuz shipping.
- Andy Burnham is due to succeed Keir Starmer as UK prime minister on 20 July.
Company news:
- JPMorgan Chase reported second-quarter results well ahead of expectations, with net income of $21.2bn, driven by strong equities trading and investment banking revenue.
- ASML reported second-quarter net sales of €9.3bn and raised its full-year sales guidance, though shares fell alongside the broader European chip sector on concerns over AI spending sustainability.
- AstraZeneca entered an exclusive global licensing agreement worth up to $1.5bn with Dizal Pharmaceutical for the lung cancer drug Zegfrovy.
- Rio Tinto reported a 7% rise in second-quarter iron ore sales and reaffirmed full-year production guidance.
- Lloyds Banking Group confirmed that new customers can no longer open accounts under the Halifax brand, as part of its plan to consolidate onto the Lloyds brand.
What we will be keeping an eye on next week…
w/c 20th July 2026
- Andy Burnham is due to take office as UK prime minister on 20 July.
- UK labour market data (21 July) and UK CPI (22 July).
- European Central Bank rate decision (23 July).
- Tesla is due to report second-quarter earnings on 22 July.
Enjoy the weekend, and stay cool.
Markets move constantly and the numbers in this update will change. This is a snapshot only, pulled together from a range of sources, and is meant as a quick guide rather than a precise record. It’s not investment advice and shouldn’t be used to make trading or investment decisions. If you need more accurate or specific data over a defined period, please get in touch with a member of the team who will be happy to help.
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This article is for information only and does not constitute advice or recommendation and you should not make any investment decisions based on it. The views and opinions of this article are those of Casterbridge at the time of writing and may change without notice. Any opinions should not be viewed as indicating any guarantee of return from investments managed by Casterbridge nor as advice of any nature. It is important to remember that past performance and the value of an investment, and any income from it, may go down as well as up and the investor may not get back the original amount invested.