27/07/2026
The phased de-escalation of US-Iran tensions, with both sides suspending retaliatory military actions, has significantly eased market concerns over potential disruptions to Middle Eastern energy supplies. This has triggered notable fluctuations in global commodities, bonds, equities and foreign exchange markets, setting a mild tone for global financial markets for the week.
1. Commodities: Oil Prices Plunge While Gold Rises Counter-Cyclically
Easing geopolitical tensions in the Middle East led to a sharp decline in international oil prices. Brent crude futures once tumbled 7.4%, falling below $90 per barrel. The loss narrowed afterwards as the US suspended its nearly two-week airstrikes on Iran. The soaring oil prices in July had offset the positive impact of lower-than-expected US CPI growth in June, putting pressure on global inflation control. The latest pullback in oil prices has given central banks breathing room to stabilize interest rates.
In contrast to oil, non-interest-bearing gold prices rose by more than 1%, approaching $4,100 per ounce, reflecting lingering safe-haven sentiment in the market.
2. Bonds and Forex: Global Bonds Rally, US Dollar Weakens as Safe-Haven Demand Fades
The easing of Middle Eastern geopolitical risks has alleviated inflation concerns across the market, driving a broad rally in global bond prices. US Treasury bonds advanced, alongside European bond futures and Asia-Pacific sovereign bonds. The yield on the benchmark 10-year US Treasury note fell 4 basis points to 4.64%, with bond prices moving inversely to yields.
In the foreign exchange market, diminished safe-haven demand pressured the US dollar, which weakened against all G10 currencies. Meanwhile, the Japanese yen strengthened to around 163.55 against the US dollar. The Singapore dollar also appreciated following further monetary policy tightening by local authorities. Additionally, traders will closely monitor the Indonesian rupiah after the governor of Bank Indonesia resigned for personal reasons.
3. Global Equities: US Index Futures Rebound, Asian Markets Mixed, Chinese Chip Stock Surges
Improved risk sentiment fueled a recovery in US tech stocks. Nasdaq 100 futures rose 1.1% and S&P 500 futures gained 0.6%, as chip stocks rebounded sharply after last week’s sell-off.
In contrast to the strong rebound in US equities, Asian markets traded cautiously with mixed performance amid widespread wait-and-see sentiment, ahead of earnings releases from major global tech companies later this week. A standout performance in Asia’s market came from the domestic chip sector: CXMT, a leading Chinese memory chip manufacturer, surged 472% on its debut trading day.
4. Key Market Focus for the Week: Global Central Bank Decisions & Tech Giant Earnings
The temporary stabilization of geopolitical conditions has shifted market focus entirely to fundamental factors, with two major pivotal events set to drive global market movements this week.
First, major global central banks will announce interest rate decisions. The three-day G7 central bank policy meeting kicks off with the Federal Reserve’s rate decision on Wednesday, followed by announcements from the Bank of England and the Bank of Japan. Markets widely expect interest rates to remain unchanged across these economies. However, investors will closely watch official remarks, as central banks are likely to emphasize close monitoring of secondary inflation risks stemming from volatile energy prices.
Second, US tech giants will release earnings results in a concentrated period. AI concept stocks underwent a round of heavy selling recently, sparking market doubts over whether tech firms’ massive infrastructure investments in artificial intelligence can generate commensurate returns. Market sentiment toward AI and the US “Big Seven Tech Stocks” has shifted notably, pressuring sector valuations. This week marks a critical window for tech earnings: Microsoft and Meta Platforms will report results on Wednesday, while Apple and Amazon will release their financial data on Thursday, whose performance is set to dominate near-term tech stock trends.
5. Latest Updates on Geopolitical Tensions
Clear signals point to a phased ceasefire in the latest Middle East conflict. After conducting 13 days of military strikes against Iran, the US has suspended all military operations since late last Friday without official explanation, leaving markets cautious about the Trump administration’s next moves. Iran’s military also stated on Sunday that Tehran has suspended its military retaliation, putting a temporary halt to hostile actions on both sides.
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