Global financial markets are set for a busy week as the second-quarter earnings season begins alongside key economic data releases from the U.S. and China. Investors will also closely monitor developments in the Middle East and their impact on oil prices and broader market sentiment. (Source: Reuters)
World's largest chipmaker takes centre stage
Taiwan Semiconductor Manufacturing Co. (TSMC) will report its second-quarter earnings on Thursday, offering investors fresh insight into demand for artificial intelligence chips. Markets will look for updates on revenue growth, capital expenditure plans and pricing strategy, as the company's outlook could shape sentiment across the global semiconductor industry.
Big lenders expected to set the tone for corporate America
The U.S. earnings season gets underway with major banks, including JPMorgan Chase, Goldman Sachs and Morgan Stanley, reporting their quarterly results. Investors expect trading divisions to post strong performances after a volatile quarter, while upcoming results from companies such as Netflix, BlackRock and Johnson & Johnson will provide a broader picture of corporate earnings.
Hormuz risks keep crude prices volatile
Renewed geopolitical tensions between the U.S. and Iran have kept oil markets on edge, with Brent crude briefly crossing $80 per barrel. While oil shipments through the Strait of Hormuz have improved, traders remain cautious about supply disruptions, making energy prices a key risk for the global inflation outlook.
Markets look for clues on Fed policy
Investors will closely watch June consumer and producer inflation data, along with retail sales figures, to gauge the strength of the U.S. economy. The releases are expected to influence expectations around the Federal Reserve's interest-rate path, while Fed Chair Kevin Warsh's testimony before Congress will also be in focus.
Trade and GDP data to reveal economic momentum
China will release trade and second-quarter GDP data this week, providing an update on the health of the world's second-largest economy. While exports have remained resilient due to strong technology shipments, investors will assess whether slowing domestic demand and geopolitical uncertainty are weighing on overall economic growth.
Key Events to Watch This Week
The week features a packed schedule, including TSMC's earnings, quarterly results from major U.S. banks, U.S. inflation and retail sales data, China trade and GDP figures, and testimony from Fed Chair Kevin Warsh. Together, these events are expected to set the tone for global financial markets in the days ahead.
