Middle East tensions lift Brent crude
The ceasefire in Iran appears to have come to an end, with energy markets already reacting to renewed military tensions involving Iran, Saudi Arabia and the United States.
According to media reports, several attacks have targeted US military bases in the region, underlining the increasingly volatile and unpredictable nature of the conflict. Oil prices responded immediately, with Brent crude climbing back above USD 86 per barrel.
Asian technology stocks extend their correction
Asian equity markets reacted swiftly to the renewed geopolitical tensions. Already under pressure, technology stocks extended their sharp correction, with the deteriorating situation in the Middle East accelerating the sell-off.
Investors continue to reduce exposure to semiconductor companies amid growing doubts over the sustainability of the AI investment cycle. The ever-rising capital expenditure required across the industry has prompted investors to reassess valuations and lock in a portion of the substantial gains accumulated over recent months.
SK Hynix guidance weighs on semiconductor sentiment
Additional pressure came from SK Hynix, whose full-year guidance fell short of market expectations, further undermining sentiment across the semiconductor sector.
The stock closed more than 11% lower after having fallen by almost 20% at its intraday low.
Fed and big tech earnings dominate the agenda
Today's trading session is expected to be particularly eventful. In Europe, Deutsche Bank is scheduled to report quarterly results, while after the US market closes, investors will closely scrutinise earnings and guidance from Microsoft and Meta, two of the key beneficiaries of the artificial intelligence investment theme.
