July 29, 2026
You know what is really getting ruined, the Kospi which fell another 6% last night (the index was down 13% at one point) and is now down some 40% from the June highs. SK Hynix posted record breaking revenue and earnings with quarterly profit rising more than 500% but it still wasn’t enough to match sky high expectations it seems. Between the two of them, SK Hynix and Samsung make up more than 50% of the Kospi index so where those two go the index pretty much follows. Stocks in Taiwan fell just shy of 4% while the Nikkei was down about 1.5% as tech names were under pressure. Elsewhere things weren’t quite as bad the ASX finished up 1% helped by softer Australian inflation data while the Hang Seng and stocks in mainland China managed to finish higher as well. The result in China is a bit surprising, given that trade tensions seem to be ratcheting up again with reports that the Trump administration plans to target China by rolling out a ban on imports of new models of robots and inverters today. European bourses were mixed today which is understandable given rising tensions in the Middle East (again) with reports that Iran launched a surprise ballistic missile attack on U.S. forces in Jordan. All the missiles were intercepted and in return U.S. and Saudi forces struck “multiple terrorist logistics and weapons sites”. No surprise oil is trading higher this morning but the move seems a bit more measured and calm as it looks like the market thinks (hopes?) this is an isolated incident and won’t lead to further escalation. To me it seems like Iran doesn’t want to make a deal very badly. Unfortunately, I would not be surprised to see ongoing skirmishes over the next few months as Iran’s plan might be to pressure the Trump administration/Republican party into the November midterms. North American stock markets tumbled on Wednesday as oil prices rose and fighting resumed in the Middle East. The swings have raised worries that inflation will reaccelerate, and traders came into the day betting on a roughly 34 per cent probability that the U.S. Federal Reserve would raise its main interest rate in the afternoon, according to data from CME Group. U.S. Fed officials voted to keep the federal funds rate steady, though three members of the policymaking committee did want to raise rates. Warsh implied the bond market may already be restraining inflation, pointing to how yields have climbed since the central bank’s last meeting six weeks ago. Higher rates can keep a lid on inflation, but they can also slow the economy and undercut prices for stocks and other investments.
* Nikkei -1.49%
* Shanghai +0.40%
* Hang Seng +1.96%
* DAX -0.01%
* FTSE +0.34%
* CAC -0.60%
* DJIA -2.19%
* S&P 500 -1.52%
* Nasdaq -1.74%
* Russell 2000 -1.61%
* BSD Global Tech Hedge Fund -1.45%