Daily Summary: Time for a Correction (23.05.2026)

The financial markets concluded the day with declines across nearly all major stock indices, primarily driven by a significant sell-off in the semiconductor sector, which began with SK Hynix during early Asian trading hours.

Market Overview

The US100 index closed at 29,385.88, down by 1.27%. The semiconductor sector was notably affected, with major companies like Sandisk, Micron, ON Semiconductor, and Marvell experiencing declines of 13%, 11.2%, 10%, and 9% respectively. This downturn followed a sharp correction of over 12% for SK Hynix, which led to a temporary trading suspension on the KOSPI.

European Markets

European stock markets mirrored the negative sentiment, with the German DAX falling by 1%, the French CAC40 by 0.7%, and the pan-European Euro Stoxx 50 by 1.3%. The British FTSE 100 saw a minor decline of 0.1%, as it awaited political developments following the resignation of Keir Starmer.

Political Developments in the UK

Investors are anticipating that Andy Burnham, the former Mayor of Manchester, will become the new Prime Minister. His recent electoral success in Makerfield suggests he could consolidate support within the party. If no opposing candidate emerges by July 16, he may be announced as Prime Minister by July 18. Burnham's interventionist economic approach has raised concerns in the markets, particularly regarding the UK’s vulnerability to bond market fluctuations. However, he has appointed experienced advisors to mitigate these concerns.

Commodity Prices

In the commodities market, energy prices have decreased due to a lack of negative news from the Middle East. Brent crude oil is priced at $77 (down 1.2%), and WTI at $73 (down 1.1%). Natural gas prices have also fallen, with NATGAS down by 3.2% to $3.15. Precious metals are experiencing declines as well, with gold priced at approximately $4,132 (-1.4%) and silver at $62 (-4.7%).

Macroeconomic Data

Market focus today was on the June PMI data, which revealed weakness in the European service sector, while manufacturing showed only modest growth. The UK data was particularly disappointing, falling significantly below consensus expectations.

Currency Market

In the foreign exchange market, the US dollar remains strong, continuing its upward trend following a hawkish FOMC meeting. The EUR/USD pair has broken the 1.14 level, with other G10 currencies weakening against the dollar, especially those with higher beta such as SEK, NOK, AUD, and NZD.