• Global markets sold off sharply on Thursday as the Middle East conflict escalated further and two of the world's most closely watched tech earnings disappointed investors. The S&P 500 fell 1.21% to 7,408.30, the Nasdaq-100 dropped 1.87% to 28,454.81 and the Dow declined 0.97% to 51,711.65, with the Russell 2000 also lower.
• Tesla tumbled 14.52% after mixed Q2 results reported after Wednesday's close, while Alphabet fell 7.13% despite beating on Q2 sales, as investors focused instead on the company's newly disclosed 2026 capital-expenditure guidance of $195-205 billion — a figure that intensified concerns about the payback on AI infrastructure spending. T-Mobile and Dover also fell sharply, while Lockheed Martin, Allegion and United Rentals were among the session's few gainers.
• Oil surged past $100 a barrel for the first time since May: US Central Command struck Iran for a 12th consecutive night, President Trump promised "major military punishment" for Iran and its Houthi allies, and the Iran-aligned Houthis claimed attacks on two Saudi oil tankers in the Red Sea — extending the conflict to a second major shipping chokepoint alongside the Strait of Hormuz.
• European markets fell broadly in sympathy: the Euro Stoxx 50 dropped 1.69% to 6,210.17 and Germany's DAX fell 1.56% even as the ECB held all three of its key rates steady (main refinancing 2.40%, deposit facility 2.25%, marginal lending 2.65%) in a widely expected decision. London's FTSE 100 fell a comparatively modest 0.73% to 10,639.17, marking its biggest one-day drop this month, as precious-metal miners, utilities and travel stocks led declines even as energy majors advanced on the oil spike.
• Government bond yields jumped across the US and Europe on rising inflation concerns tied to the oil shock — the UK 10-year Gilt yield spiked 1.35% and Germany's Bund yield rose 1.01%. Asia is trading broadly lower this morning: Japan's Nikkei 225 fell 2.85% to 64,516.50, led down by Disco, SoftBank Group and Advantest, South Korea's KOSPI dropped 2.93%, and Taiwan's TAIEX fell 1.33%, while Hong Kong's Hang Seng eased 1.10% and Shanghai bucked the trend with a small 0.25% gain.
• Today's calendar includes Japan's national CPI at 07:30 HKT, flash PMI readings across Japan, the Eurozone, and the US, plus UK retail sales and US building permits and new home sales.

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