Market Analysis Summary - Week of 13 Jul 2026

Last Week's Recap

Oil prices surged due to escalating tensions in the Middle East, while China's factory-gate prices reached a four-year high. The Japanese yen strengthened following reforms to the Government Pension Investment Fund (GPIF).

Key highlights include:

• US-Iran tensions led to a significant rise in oil prices, with Brent crude rebounding above $80 per barrel.
• China's Producer Price Index (PPI) increased by 4.1% year-on-year, indicating strong raw material costs despite a softer Consumer Price Index (CPI).
• The yen appreciated as Japan's GPIF shifted its asset allocation towards domestic investments.

Markets in Focus

The US stock market exhibited mixed results, with technology stocks like Meta and Nvidia driving gains in the Nasdaq 100, while the Dow Jones index lagged due to geopolitical concerns.

Specific movements included:

• Meta's stock surged by 14.8% following announcements of a new cloud unit aimed at monetizing AI capabilities.
• Nvidia's shares rose by 8.3% after news of potential chip orders from Chinese firms.
• Conversely, Intel's stock fell by 8.7% due to concerns over manufacturing delays.

The Hang Seng Index outperformed regional peers, driven by strong performances from Alibaba and other Chinese tech stocks.

Crude Oil Market Update

Brent crude futures increased by 5.4% amid renewed US-Iran hostilities, briefly surpassing $80 per barrel. The International Energy Agency (IEA) reported a rebound in global oil supply, although concerns about a potential surplus loom due to ongoing geopolitical tensions.

Technical analysis indicates that a sustained break above $78 could lead to further price increases, while the July low of $70.21 serves as critical support.

The Week Ahead

The upcoming week is packed with significant economic data releases, including:

• US Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which are expected to show moderated inflation rates.
• China's GDP growth data, with expectations of a slowdown to 4.4% year-on-year.
• Q2 earnings season kicks off with major banks like JPMorgan and Goldman Sachs reporting results.

Market participants will closely monitor these indicators to gauge economic health and potential impacts on monetary policy.