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German Blue-chip DAX Index Closes Lower; Eurozone Inflation Cools

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German shares ended Friday's trading in the red, with the blue-chip DAX index closing the week 0.34% lower, after the market digested the latest eurozone inflation print alongside updates on escalating tensions in the Middle East.

According to final data from Eurostat, the euro area's annual inflation fell to 2.8% in June from 3.2% previously, in line with the flash estimate. Meanwhile, the annual core rate, which excludes energy, food, alcohol and tobacco, came in at 2.4%, consistent with the initial reading and below the prior month's 2.6%.

"Lower oil prices than the European Central Bank (ECB) expected and the absence of second-round effects on inflation will prompt the ECB to leave the deposit rate at 2.25% at its meeting on 23 July. ECB President Christine Lagarde will not provide any forward guidance at the press conference and will retain maximum flexibility for the remaining meetings this year. If there is no further significant escalation in the Middle East - and consequently in energy prices - we do not expect the ECB to raise interest rates any further," Berenberg said in a preview note.

In geopolitical news, the US and Iran continue to exchange retaliatory attacks, as oil prices fluctuated throughout the trading session. Raising fears of further supply chain disruption, a Reuters report, citing three sources familiar with the matter, claimed Tehran instructed its Houthi allies in Yemen to prepare to block the Red Sea oil route if the US targets the Iranian power infrastructure.

On the corporate front, Siemens Healthineers (SHL.F) was down 0.11%, as RBC Capital Markets forecasts midterm margin upside potential with projected growth acceleration starting in fiscal 2027 for the German healthcare company.

"We see SHL as well-positioned to deliver mid-to-high-[single-digit] core sales growth and [double-digit] earnings growth from FY27. Consensus looks conservative on mid-term margins and a potential Diagnostics carve-out offers optionality for deleveraging and capital reallocation. Although we lower our PT to EUR45/sh (from EUR55) on peer de-rating and near-term challenges, we retain our Outperform rating, with c.30% implied upside," RBC wrote.

Outside the main index, Uniper (UN0.F) confirmed its plan to invest 5 billion euros through 2030 as part of its transformation strategy. According to the state-owned utility, half of the allocated amount will be for Germany, with a focus on flexible generation capacity. Uniper gained 1.18% on Xetra.

Investors will look ahead next week to a slate of economic data, including June producer price index figures, the July ZEW Economic Sentiment Index and PMI readings, and the August GfK Consumer Confidence survey.

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Update: US Equity Indexes Drop as Chipmakers Push Technology Lower, Iran Warns on Red Sea Chokepoint

(Updates with index/price moves, macroeconomic data, and geopolitical news from the first paragraph.)US equity indexes slumped as a sell-off in chipmakers hit technology, and Iran warned its allies would close the Red Sea crude oil chokepoint if President Donald Trump orders an attack on Tehran's civilian infrastructure.The Nasdaq declined 1.5% to 25,881.95, the S&P 500 fell 0.5% to 7,533.77, and the Dow Jones Industrial Average declined 0.2% to 52,552.97 on Thursday. Communication services and technology led decliners, while consumer staples, health care, and real estate topped the gainers.Shares of Taiwan Semiconductor Manufacturing (TSM) slid 2.3% after the firm earmarked an additional $100 billion to increase its chipmaking capacity in the US, raising its total planned investment to $265 billion, Bloomberg reported Thursday, citing a US official. Taiwan Semiconductor also reported Q2 results on Thursday, with year-over-year earnings and net revenue rising and Q3 sales guidance beating consensus.Among stocks with market capitalization exceeding $200 billion each, 13 out of the bottom 20 names were from the technology sector, according to data compiled by Finviz. Almost half of the decliners were semiconductor firms, the data showed. The worst performer was SanDisk (SNDK), down about 12.6%.In geopolitical news, the US military launched a sixth consecutive night of strikes on Iran, with the country's media reporting explosions on Qeshm Island, Bandar Abbas, and Chabahar, according to Al Jazeera, a Middle Eastern broadcaster.The Iranian military has warned "all infrastructure in the region will be crushed under steel blows" if the US carries out its threat to attack Iran's civilian sites, the Al Jazeera report said. Iran has asked Yemen's Houthi movement to stand ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, Reuters reported, citing three sources.Total volumes of petroleum transiting Bab el-Mandeb amounted to 7.4 million barrels per day in June, or about 7% of global oil output, up from 4.2 million bpd a year ago, MarineLink reported, citing Kpler data.The front-month US West Texas Intermediate fell 0.7% to $79.08 a barrel, hovering around its highest in about a month amid a rally that began after the US renewed strikes on Iran a week ago. North Sea Brent futures retreated 0.7% to $84.34 a barrel, close to its month-high.Iraqi crude loadings more than doubled to average roughly 1.2 million barrels per day in the first half of July, Reuters reported, citing Kpler data and a source with direct knowledge of the flows, as exports accelerated following months of restricted shipments.Most US Treasury yields rose, with the 10-year up 1.2 basis points to 4.56% and the two-year climbing 1.7 basis points to 4.15%.In precious metal markets, gold futures retreated 1.8% to $3,980.5, and silver futures dropped 2.8% to $55.84.In economic news, US retail sales rose by 0.2% in June, as expected in a Bloomberg-compiled poll and following the previous month's revised 1.0% increase.US initial jobless claims fell to a level of 208,000 in the week ended July 11 from an upwardly revised 216,000 level in the previous week, compared with expectations for a level of 217,000 in a survey of analysts compiled by Bloomberg.

Dow JonesNasdaq CompositeS&P 500$SNDK$TSM
Asia Markets

Update: Technology Slide Pushes Nasdaq, S&P 500 Lower

(Updates with index/price moves, macroeconomic data, and geopolitical news from the first paragraph.)US equity indexes traded mixed as a sell-off in chipmakers pushed technology sharply lower, while UnitedHealth's (UNH) strong Q2 results helped lift the price-weighted Dow Jones Industrial Average.The Nasdaq declined 0.9% to 26,021.1, and the S&P 500 fell 0.3% to 7,548.3 after midday Thursday. The Dow Jones Industrial Average was up by less than 0.1% to 52,691.5.Consumer staples, healthcare, and real estate topped the gainers, while technology slumped, down 1.9% intraday.Shares of Taiwan Semiconductor Manufacturing (TSM) slid 3.1% after the firm earmarked an additional $100 billion to increase its chipmaking capacity in the US, raising its total planned investment to $265 billion, Bloomberg reported Thursday, citing a US official. Taiwan Semiconductor also reported Q2 results on Thursday, with year-over-year earnings and net revenue rising and Q3 sales guidance beating consensus.Among stocks with market capitalization exceeding $200 billion each, 15 out of the bottom 20 names were from the technology sector, according to data compiled by Finviz. Half of the decliners were semiconductor firms, the data showed. The worst performer was SanDisk (SNDK), down 11%.In company news, UnitedHealth's shares jumped 3.1%, making it one of the Dow's top gainers, after the company posted higher Q2 adjusted earnings and revenue and raised its 2026 adjusted EPS outlook.In geopolitical news, the Iranian military warns "all infrastructure in the region will be crushed under steel blows" if the US carries out its threat to attack Iran's civilian sites, Al Jazeera, a Middle Eastern broadcaster, reported. Iran has asked Yemen's Houthi movement to stand ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, Reuters reported, citing three sources.The front-month US West Texas Intermediate fell 0.3% to $79.35 a barrel, and global benchmark North Sea Brent slipped 0.1% to $84.83 a barrel.Most US Treasury yields rose, with the 10-year up 2.8 basis points to 4.57% and the two-year climbing four basis points to 4.16%.In precious metal markets, gold futures retreated 1.4% to $3,995.1, and silver futures dropped 2% to $56.32.In economic news, US retail sales rose by 0.2% in June, as expected in a Bloomberg-compiled poll and following the previous month's revised 1.0% increase. Excluding a 1.9% increase in motor vehicle sales, retail sales were down 0.2% compared with an expected 0.1% decrease. That followed a 1.0% increase in May. Removing both motor vehicles and a 5.3% decline in gasoline station sales, retail sales were up 0.4% in June after a 0.8% increase in May.US initial jobless claims fell to a level of 208,000 in the week ended July 11 from an upwardly revised 216,000 level in the previous week, compared with expectations for a level of 217,000 in a survey of analysts compiled by Bloomberg. The four-week moving average fell by 4,750 to 214,250.Pending home sales fell by 5.4% in June, well below the 0.5% decrease expected in a survey compiled by Bloomberg as of 7:30 am ET and following a 3.5% increase in May, according to the National Association of Realtors. The monthly sales index was down 0.3% from June 2025."The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers," NAR Chief Economist Lawrence Yun said. "However, job gains can help support housing demand."

Dow JonesNasdaq CompositeS&P 500$SNDK$TSM$UNH
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM edged higher and IVV fell. Actively traded Invesco QQQ Trust (QQQ) dropped 1.4%.US equity indexes traded mixed as a sell-off in chipmakers pushed technology lower, while UnitedHealth's (UNH) strong Q2 results helped lift the Dow Jones Industrial Average.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added 0.8%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 2.3%; iShares US Technology ETF (IYW) shed 1.8%, and iShares Expanded Tech Sector ETF (IGM) declined 2.1%.The State Street SPDR S&P Semiconductor (XSD) tumbled 5.7, and iShares Semiconductor (SOXX) fell 4.3%.FinancialThe State Street Financial Select Sector SPDR (XLF) rose 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 0.5%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 0.6%.CommoditiesCrude oil slipped 0.9%, and the United States Oil Fund (USO) fell 1.7%. Natural gas dropped 2.8%, and the United States Natural Gas Fund (UNG) lost 2.9%.Gold on Comex fell 1.3%, and the State Street SPDR Gold Shares (GLD) declined 1.7%. Silver dropped 1.8%, and iShares Silver Trust (SLV) slumped 3% lower.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 2.4%. The Vanguard Consumer Staples ETF (VDC) rose 2.3%, and iShares Dow Jones US Consumer Goods (IYK) gained 2.4%.The State Street Consumer Discretionary Select Sector SPDR (XLY) rose 0.5%. VanEck Retail ETF (RTH) added 1.9%, and the State Street SPDR S&P Retail (XRT) advanced 1.8%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 2%, iShares US Healthcare (IYH) added 1.8%, and Vanguard Health Care ETF (VHT) gained 1.6%. IShares Biotechnology ETF (IBB) fell 0.5%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) slipped 0.2%. Vanguard Industrials Index Fund (VIS) fell, and iShares US Industrials (IYJ) edged higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 0.8%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) shed 0.8%, ProShares Ether ETF (EETH) was down 2.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.2% lower.

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