Global equity markets closed the week on a mixed note as escalating tensions in the Middle East, renewed concerns over artificial intelligence (AI) spending and mixed corporate earnings weighed on investor sentiment, according to Cordros Capital Limited’s Weekly Economic Market Report.
The report said Brent crude oil climbed above US$100 per barrel during the week after the conflict in the Middle East intensified, reigniting concerns over global inflation and the future direction of interest rates.
In the United States, major stock indices were on course to post weekly losses. The Dow Jones Industrial Average (DJIA) declined 0.8 per cent, while the S&P 500 shed 0.7 per cent. The technology-heavy NASDAQ recorded the largest drop, falling 1.5 per cent.
Cordros Capital attributed the decline largely to heavy selling in major technology stocks following Alphabet’s decision to raise its capital expenditure guidance. Investor sentiment was further dampened after Tesla reported weaker-than-expected second-quarter earnings.
European markets delivered mixed performances. The FTSE 100 gained 0.4 per cent, supported by stronger energy stocks that benefited from higher crude oil prices. However, the STOXX Europe 600 slipped 0.4 per cent as technology shares came under pressure.
Asian equities ended the week higher. China’s Shanghai Stock Exchange Composite Index (SSE) advanced 1.2 per cent after Moonshot AI unveiled a new artificial intelligence model that reportedly matched leading US systems on key performance benchmarks.
Japan’s Nikkei 225 also rose 0.7 per cent, supported by renewed buying interest in semiconductor stocks.
Emerging markets outperformed during the week, with the MSCI Emerging Markets Index climbing 3.2 per cent, driven mainly by gains in Chinese equities. In contrast, the MSCI Frontier Markets Index declined 1.5 per cent, reflecting significant losses in Vietnam, where equities fell 5.6 per cent.
According to Cordros Capital, investors continued to monitor a combination of geopolitical risks, rising energy prices, second-quarter corporate earnings and new United States tariff measures, all of which contributed to increased market volatility.
The investment firm noted that global financial markets are likely to remain sensitive to developments in the Middle East, inflation trends and monetary policy decisions by major central banks in the weeks ahead.
