Market Summary - July 21, 2026
Key Takeaways
U.S. and European equity index futures are attempting to rebound, with the US500 up around 0.4%. However, market sentiment remains fragile due to the ongoing U.S.-Iran conflict, which continues to fuel volatility.
Rising oil prices, persistent inflation concerns, and escalating tensions in the Middle East are weighing on bond markets. In contrast, sectors such as semiconductors, gold, silver, and cryptocurrencies are staging a recovery.
In Europe, investors are focusing on stronger-than-expected results from Novartis and Julius Baer, while Schindler reaffirmed its full-year guidance.
Market Performance
U.S. Markets
The US500 index is currently up 0.35%, attempting to recover from earlier losses. The previous session was marked by a sell-off across most S&P 500 stocks due to renewed tensions in the Middle East.
European Markets
European equity index futures are also trading higher, with the EU50 and DE40 gaining close to 0.5%. The EURUSD is up 0.1%. Notably, Bitcoin is rebounding, trading at nearly $65,500, while Ethereum has increased by 1%.
Asian Markets
Asian stock markets rebounded after three consecutive sessions of losses, driven mainly by a strong recovery in semiconductor and AI-related stocks. The MSCI Asia Pacific Index gained 2.2%, with South Korea’s Kospi rising around 4% and Japan’s Nikkei 225 advancing 2.7%.
Sector Highlights
The semiconductor sector showed resilience, with chipmakers' index rebounding after entering a bear market. Taiwan's shares rose by more than 3%, supported by a recovery in TSMC and other semiconductor companies.
Precious metals are attempting to rebound, with gold gaining almost 1.2% and silver rising nearly 3% amid ongoing inflation risks.
Geopolitical Developments
Diplomatic efforts to ease tensions in the Middle East have intensified, with reports of a possible 10-day pause in strikes. However, the geopolitical premium in oil prices remains high due to threats from Iran-backed Houthi rebels to block Saudi shipping routes.
Goldman Sachs has warned that Brent crude could rise to $120 per barrel if the Strait of Hormuz remains closed. The Iranian military has reported missile strikes targeting U.S. missile systems in Kuwait, indicating a further escalation in military activity.
Corporate Earnings
Novartis
Novartis reported second-quarter 2026 net sales of $14.41 billion, exceeding the consensus forecast of $13.94 billion. Core earnings per share came in at $2.41, surpassing expectations.
Schindler
Schindler generated first-half 2026 revenue of CHF 5.33 billion, slightly below expectations, but reaffirmed its 2026 outlook.
Julius Baer
Julius Baer ended the first half of 2026 with assets under management of CHF 547 billion, slightly above expectations, indicating improved operating efficiency.