As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Global markets opened the week under pressure as renewed U.S.-Iran attacks pushed oil higher and raised the risk of additional central-bank tightening. The move arrived alongside another sharp semiconductor selloff, sending the KOSPI down more than 7 percent and weighing on technology shares across Asia and Europe. Earnings, U.S. inflation data and Kevin Warsh’s first congressional testimony as Fed Chair now arrive into a less forgiving market.
In Asian Equity Markets stocks fell as the semiconductor correction deepened. South Korea’s KOSPI dropped around 7.6 percent after losing almost 8 percent the previous week, with leveraged positions in memory-chip companies coming under further pressure. SK Hynix’s South Korean shares fell sharply despite the strong debut of its U.S.-listed shares on Friday. Japan’s Nikkei declined around 1.9 percent as higher oil, a weaker yen and technology losses weighed on sentiment.
In European Equity Markets stocks edged lower as gains in energy companies failed to offset weakness in travel and technology. The pan-European STOXX 600 fell around 0.1 percent, while the regional technology sector declined roughly 1.1 percent. Airlines and travel companies were among the weakest performers as the rise in crude threatened fuel costs and consumer demand. Energy shares gained, but the benefit to producers was not enough to stabilise the wider market.
In U.S. Equity Markets futures pointed lower ahead of a demanding week for earnings and economic data. Nasdaq futures fell around 1.2 percent, while S&P 500 futures declined roughly 0.4 percent. Major banks begin reporting on Tuesday, followed later in the week by Netflix, General Electric and TSMC. Investors are looking for evidence that earnings growth can offset concerns over stretched technology valuations and the cash demands of the AI infrastructure buildout.
In Commodities Markets oil rose sharply after U.S. and Iranian forces exchanged another round of missile and drone attacks. Brent gained close to 4 percent to around $78.86 per barrel, while WTI climbed above $74. Iran again claimed to have closed the Strait of Hormuz, although U.S. officials said vessels had been escorted through the waterway. Ship-tracking data showed limited traffic, leaving the market uncertain over how much crude is moving in practice.
In Currency Markets the dollar strengthened as higher oil and Treasury yields supported expectations for tighter Federal Reserve policy. The dollar index traded near 101.13, while the euro held around $1.139. USD/JPY moved back above 162, reversing part of Friday’s yen recovery. Japan’s proposed pension-allocation shift may eventually create yen demand, but the process is likely to be gradual and has not yet overcome the pressure from rate differentials and imported energy costs.
In Bond Markets short-term Treasury yields rose as investors increased their expectations for further Federal Reserve tightening. The U.S. 2-year yield reached roughly 4.24 percent, its highest level since February 2025, while futures implied around 39 basis points of additional tightening by year-end. June inflation data are due on Tuesday, followed by Kevin Warsh’s first testimony to Congress as Fed Chair. Higher oil has made both events more consequential than they appeared a week ago.
The Cross-Asset Read
Monday brought together the two risks that markets had been trading separately.
The semiconductor selloff had previously unfolded while oil remained contained. That allowed lower energy costs and relatively stable bond yields to protect the wider equity market, even as chip valuations corrected.
That protection has weakened.
Brent is approaching $80, the U.S. 2-year yield is above 4.20 percent and the KOSPI is again experiencing forced selling. The combination matters because it raises the discount rate applied to technology earnings at the same time that investors are questioning the durability and cash intensity of the AI investment cycle.
This week’s earnings will test whether the correction has moved ahead of the fundamentals. TSMC is expected to report another strong quarter, while the major U.S. banks will provide a broader view of credit demand, consumer resilience and market activity.
The immediate flag is Brent at $80 and the U.S. 2-year yield at 4.25 percent. Sustained moves above both would place greater pressure on technology valuations and make it harder for the selloff to remain contained within semiconductors.
A retreat below those levels would restore some room for earnings to stabilise the market.
For now, oil and chips are moving against risk at the same time.
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