MARKET WRAPS
Stocks:
European shares were mixed as AI-related stocks weakened following Samsung Electronics' preliminary earnings.
The Stoxx 600, the CAC and the FTSE 100 were up while the DAX edged down.
Samsung Electronics projected a 19-fold surge in second-quarter operating profit, but investors need confident guidance , durable pricing power and proof that AI demand is still accelerating, Saxo Markets said.
Geopolitical concerns increased again after Iran's Islamic Revolutionary Guard Corps fired missiles at two commercial ships near the Strait of Hormuz early Tuesday, the WSJ reported, citing a U.S. official.
Oil prices were drifting higher, with Brent crude futures back above their pre-war levels, as the attacks highlighted persistent security risks despite diplomatic efforts.
If oil prices continue to normalize, inflation pressures should ease and central banks should have less need to tighten aggressively, Columbia Threadneedle Investments said.
"In that environment, the outlook remains positive , and markets may find that the second half is less about reacting to shocks than playing for time while the data provide a clearer signal," it added.
Economic insight
Germany appears to be weathering the Iran war, after an industrial pickup follows strong retail sales figures
released last week, Capital Economics said.
"While German manufacturing
seems not to have been greatly affected by the Iran conflict, this does not change the reality that it is likely to shrink as a share of the economy over the medium term," it added.
Stocks to watch
is one of the European airlines with the greatest potential to outperform estimates this quarter, J.P Morgan said.
IAG
is expected to post second-quarter results that will slightly exceed consensus estimates, despite higher fuel costs weighing on profits, J.P Morgan said.
TKMS 's growth visibility has increased for the coming years after Canada chose the German ship and submarine builder as the preferred supplier for 12 conventional submarines, Deutsche Bank said. The likely order means TKMS has converted all its outstanding major multi-billion contract opportunities.
Shell
said its gas-trading division is expected to report significantly higher results than the first quarter after benefiting from an uplift in prices.
U.S. Markets:
Stock futures were mixed as the chip-led AI rally paused.
Investors are now awaiting the Fed's meeting minutes due Wednesday which could provide signals on policy. While Fed Chair Kevin Warsh said a rate rise wasn't discussed in June, the minutes could offer a "more nuanced picture of whether he has pushed for a faster shift towards a tighter policy stance," Danske Bank said.
Forex:
The euro fell . The currency could stay stuck in a range against the dollar over the summer as there doesn't appear to be any major drivers to move it, Commerzbank said.
The dollar rose modestly as markets continued to bet on the Federal Reserve raising interest rates by year-end.
Sterling extended its gains
against the euro to reach a fresh one-year high. Sterling's surprising resilience amid recent political turmoil reflects the fact that much of the bad news has already been priced in, Insight Investment said.
Bonds:
The 10-year Bund yield rose to a two-week high
in early trade, with yields rising across the board.
Treasury yields rose, driven by the long-end of the curve, causing the yield curve to steepen.
Energy:
Oil prices rose
more than 1.5% as Iranian attacks on commercial vessels near the Strait of Hormuz.
Metals:
Gold prices fell
as Iranian attacks against two commercial ships near the Strait of Hormuz revived concerns over inflation.
"Overall, bullion remains rangebound as it attempts to shift from capitulation to consolidation, supported by softer U.S. data and a less hostile dollar and yield backdrop," Saxo Bank said.
Gold chart
Comex gold futures' bearish technical setup
lingered, based on the daily chart, RHB Retail Research said. Despite the commodity's latest positive price action, it was rejected by resistance at the 20-day simple moving average.
Copper
Copper prices are lower in early Asia trade as investors remain cautious over the outlook for U.S. trade policy and the Fed, said Dongwu Futures.
Iron
Iron ore rises in early Asian trading amid concerns over tightening supplies, ANZ Research said.
EMEA HEADLINES
Shell's Traders Get Boost From Conflict But Gas Output Falls on Lost Qatari Volumes
Shell's traders continued to benefit from volatility triggered by the conflict in the Middle East in the second quarter, but lost Qatari volumes have dragged on gas output, highlighting the conflict's uneven impact on energy majors.
The British energy major said its gas-trading division is expected to report significantly higher results than the first quarter after benefiting from an uplift in prices, which are typically delayed due to price lag effects in contracts. Shell's oil traders, who delivered bumper profits at the start of the year, are also expected to post a robust performance.
German Industrial Output Rose Unexpectedly in May
Industrial production in Germany unexpectedly rose for a second consecutive month in May despite higher energy costs and operational uncertainty due to the conflict in the Middle East.
Output was 0.9% higher on month, following an uptick of 0.2% in April, Germany's statistics agency Destatis said Tuesday. This marks the strongest reading since March 2025.
Europe Races to Plug Security Holes After U.S. NATO Pullback
ANKARA, Turkey-America's allies are rushing to find workarounds and replacements for the bombers, warships and other forces the U.S. recently told other NATO members they could no longer rely on in a crisis.
But filling all the holes left by the American pullback-including midair refuelers that are in short supply and long-range strategic bombers that only the U.S. has-is proving challenging for the military alliance and risks leaving its European members, in particular, exposed to rising threats from Russia.
Iran's Revolutionary Guard Fires Missiles at Ships Near Hormuz
Iran's Islamic Revolutionary Guard Corps fired missiles at two commercial ships near the Strait of Hormuz early Tuesday, according to a senior U.S. official, marking an escalation that threatens to complicate negotiations to end the U.S.-Iran war.
The attacks come as Iranians mourn Ayatollah Ali Khamenei, the former supreme leader killed at the start of the Iran war. They also follow stepped-up threats by the powerful paramilitary force, which has been undermining talks and warning vessels not to transit the waterway using a route cleared by the U.S. military near the coast of Oman.
GLOBAL NEWS
Iran's Revolutionary Guard Fires Missiles at Ships Near Hormuz
Iran's Islamic Revolutionary Guard Corps fired missiles at two commercial ships near the Strait of Hormuz early Tuesday, according to a senior U.S. official, marking an escalation that threatens to complicate negotiations to end the U.S.-Iran war.
The attacks come as Iranians mourn Ayatollah Ali Khamenei, the former supreme leader killed at the start of the Iran war. They also follow stepped-up threats by the powerful paramilitary force, which has been undermining talks and warning vessels not to transit the waterway using a route cleared by the U.S. military near the coast of Oman.
German Industrial Output Rose Unexpectedly in May
Industrial production in Germany unexpectedly rose for a second consecutive month in May despite higher energy costs and operational uncertainty due to the conflict in the Middle East.
Output was 0.9% higher on month, following an uptick of 0.2% in April, Germany's statistics agency Destatis said Tuesday. This marks the strongest reading since March 2025.
Foreign Investment Rises, But Developing Countries Squeezed By AI Focus, Says UN
Overseas investment by businesses rose again last year, but is increasingly steered by governments toward a small number of strategic sectors as geopolitical rivalries intensify, the United Nations said Tuesday.
That marks a shift away from investments driven by considerations of cost and efficiency, a move that threatens to sideline many developing economies that don't have the resources to compete with the inducements offered by their richer counterparts, the body said in its annual report on foreign direct investment.
Iran's Revolutionary Guard Fires Missiles at Ships Near Hormuz
Iran's Islamic Revolutionary Guard Corps fired missiles at two commercial ships near the Strait of Hormuz early Tuesday, according to a senior U.S. official, marking an escalation that threatens to complicate negotiations to end the U.S.-Iran war.
The attacks come as Iranians mourn Ayatollah Ali Khamenei, the former supreme leader killed at the start of the Iran war. They also follow stepped-up threats by the powerful paramilitary force, which has been undermining talks and warning vessels not to transit the waterway using a route cleared by the U.S. military near the coast of Oman.
Europe Races to Plug Security Holes After U.S. NATO Pullback
ANKARA, Turkey-America's allies are rushing to find workarounds and replacements for the bombers, warships and other forces the U.S. recently told other NATO members they could no longer rely on in a crisis.
But filling all the holes left by the American pullback-including midair refuelers that are in short supply and long-range strategic bombers that only the U.S. has-is proving challenging for the military alliance and risks leaving its European members, in particular, exposed to rising threats from Russia.
The Iran War Has Oil-Rich Alaska Freaked Out About $9 Gas
DILLINGHAM, Alaska-John Stelling had just cranked the digits of his fuel pump to $9.10 at his gas station in this remote Alaskan community when he realized he had a problem. Could he push the meter to $10 if he had to?
"Not sure if it'll handle those," he said of double-digit fuel prices.
Top Democrats Push for Graham Platner to Exit Senate Race
Democratic Party leaders and close allies urged Graham Platner to quit the Maine Senate race, after a woman he had been romantically involved with publicly alleged that he sexually assaulted her.
The allegation, which Platner denied, is the most serious so far to emerge in a campaign marked by controversy and put his political future in doubt. Allies who had campaigned with him dropped their endorsements and Democrats scrambled to find a backup plan in what they see as a must-win state, with a deadline for a new candidate later this month if Platner steps aside.
Write to priscila.barrera@wsj.com
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
July 07, 2026 05:01 ET (09:01 GMT)
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