Global stock markets showed mixed movement on Wednesday as strong earnings from chip equipment manufacturer ASML helped tech sectors recover, offsetting concerns prompted by escalating tensions in the Middle East and rising oil prices. Europe’s STOXX 600 index hovered near unchanged levels by mid-afternoon in London after posting gains the previous day, supported by US inflation data that sparked hopes of a slower pace of interest rate increases.
ASML, the world’s largest supplier of semiconductor manufacturing machinery, reported higher-than-expected quarterly earnings and raised its full-year 2026 forecasts. The company also announced plans to expand production capacity, driven by robust demand linked to artificial intelligence technologies. ASML’s shares surged as much as 8 percent in Amsterdam, boosting investor confidence in AI-related stocks. Although these stocks trimmed some gains, they remained elevated by around 4 percent. Asian markets also responded positively, with South Korea’s tech-heavy KOSPI index climbing over 6 percent, led by an 8.8 percent jump in memory chip maker SK Hynix. Japan’s Nikkei index rose 1.5 percent.
In the United States, futures pointed to a firmer open for major equity benchmarks, with Nasdaq futures up 0.5 percent and S&P 500 futures rising 0.1 percent as investors looked ahead to ongoing corporate earnings reports. Recent softer-than-expected data on US consumer prices, showing a 0.4 percent decline in the headline consumer price index for June and flat core inflation, driven optimism about the Federal Reserve’s policy path. Bond yields and the dollar weakened on the data, while the euro held steady above $1.14.
However, Federal Reserve Chair Kevin Warsh tempered enthusiasm during congressional testimony, cautioning that one favorable inflation report is insufficient to confirm inflation is under control. Markets are set to closely follow his remarks along with upcoming US producer price figures and the Fed’s Beige Book for clearer signals about future monetary policy.
Elsewhere in earnings, several large US corporations surprised with positive results. Morgan Stanley posted a second-quarter profit increase supported by strong mergers and acquisitions activity, lifting its shares by 2.8 percent in premarket trading. BlackRock and Johnson & Johnson also exceeded Wall Street expectations, benefiting from improved market conditions and solid sales respectively.
On the policy front, the Bank of Canada is expected to maintain its benchmark interest rate later Wednesday, with the Canadian dollar trading above 1.40 against the US dollar.
Oil prices advanced amid rising geopolitical risks following US President Donald Trump’s reinstatement of a naval blockade on Iranian ports. Iran’s Islamic Revolutionary Guard Corps warned of potential closures of export routes critical to the United States and its allies. Brent crude futures increased 0.7 percent, settling near $85.30 per barrel.
In China, second-quarter economic growth slowed sharply to 4.3 percent year-on-year, falling short of analyst forecasts due to weak domestic demand despite solid export and production figures. June retail sales showed some recovery, and nominal GDP growth remained relatively strong, fueling investor hopes for targeted policy measures. Economists indicated any stimulus would likely focus on technology sectors rather than broad economic intervention. The yuan traded near a one-month high against the dollar at 6.771.
Meanwhile, spot gold prices declined 0.6 percent to $4,029.30 per ounce, reversing part of the previous day’s rally amid concerns over inflation and uncertain US interest rate prospects following the oil price increase.