Key takeaways

• US stocks rose; Treasuries mixed.
• European stocks rose; government bonds mixed.
• Asian stocks traded mixed.

Markets

US stocks advanced on Thursday, led by a rebound in technology shares. The S&P 500 rose 1.7% with divergent sector performances.

US Treasuries extended post-Fed curve steepening after PCE inflation data. 10-year yields edged 1bp lower to 4.67%.

European stocks rose on Thursday, aided by upbeat Eurozone GDP data. The Euro Stoxx 50 rose 1.5%. The German DAX gained 0.6%, while the French CAC was up 0.9%. In the UK, the FTSE 100 inched 0.1% lower.

European government bonds ended mixed. 10-year German bund yields edged down 1bp to 3.15%, while 10-year French bond yields fell 2bp to 3.94%. In the UK, 10-year gilt yields fell 6bp to 4.98%.

Asian stock markets traded mixed on Thursday, as investors assessed a mixed set of large tech earnings results, Fed policy signals, and geopolitical headlines. Korea’s Kospi fell 1.2% as investors weighed new government measures to stabilise the market, including limiting retail involvement in leveraged ETFs, while Japan’s Nikkei 225 rose 0.7%. Elsewhere, China’s Shanghai Composite fell 0.6%. Policymakers at the Politburo meeting struck a more supportive tone on the economy and capital markets but showed little appetite for major stimulus. Industrial policy remains front and centre, with AI, industrial upgrading, technological innovation and self-sufficiency being top priorities. Meanwhile, Hong Kong’s Hang Seng was up 0.2% as India’s Sensex ended 0.4% higher.

Crude oil prices fell on Thursday. WTI for September delivery settled 1.0% lower at USD83.6 a barrel.

Key Data Releases and Events

Releases yesterday

In the US, Q2 real GDP rose at a qoq annualised rate of 1.5% compared to 2.1% in Q1, below market expectations. PCE inflation moderated to 3.7% yoy in June from 4.1% yoy in May, with the core measure edging down to 3.3% yoy in June from 3.4% yoy in May. 

Eurozone Q2 real GDP posted a 0.4% qoq increase following Q1’s -0.2% qoq decline, above the market consensus.

The Bank of England held its policy rate at 3.75%, as expected, citing little evidence so far of second-round effects from higher energy prices, though the central bank reiterated that it stands ready to act as necessary to return inflation to its target.

Releases due today (31 July 2026)

In the Eurozone, headline CPI inflation likely rose on higher oil and gas prices, with the core rate staying above target amid sticky services inflation.

The Bank of Japan is expected to keep its policy rate unchanged, but persistent inflationary pressure and yen weakness raise the risk of a near-term move.

https://www.hsbc.com.my/wealth/insights/asset-class-views/investment-daily/