Deep Dive: European equities remain resilient amid acute exposure to geopolitical shocks

• The FTSE 100 rallied 1.3% over the week, while the FTSE 250 and AIM all-share indices rose by 0.8% and 1.6% respectively. • Market gains were driven by reports suggesting that peace talks between Iran and the United States could potentially resume.

• The European Central Bank (ECB) released a new survey indicating a forecast for lower economic growth and higher inflation across the eurozone. • The report suggests a challenging economic outlook, as rising price pressures coincide with a slowdown in overall productivity and expansion.

• American Express reported strong Q2 earnings, featuring a 10% revenue increase and earnings per share (EPS) that exceeded analyst estimates. • CEO Stephen Squeri attributed the growth to high consumer confidence and a 40% year-over-year surge in spending among Gen-Z customers.

• The Nasdaq index declined on Friday, July 24, as investors offloaded chip stocks due to growing concerns regarding the sustainability of massive artificial intelligence spending. • This market downturn comes as investors brace for the upcoming batch of earnings reports from megacap technology companies.

• S&P Global is scheduled to release the July flash Purchasing Managers Indices (PMIs) for the United States this Friday. • These surveys gather data from top private-sector executives to provide an early indicator of the nation's overall economic health.

• The Services Purchasing Managers' Index (PMI) has surged, surpassing both previous levels and market forecasts. • This growth indicates significant strength and resilience within the service sector of the economy.

• IBM stock shares rose by 3.7% today following a period of volatility. • The price increase is attributed to a market rebound after the company released its second-quarter update.

• Wall Street ended a volatile trading week on Friday with mixed results, as the Dow Jones and S&P 500 posted modest gains while the Nasdaq slipped. • The market volatility follows June payroll growth figures that came in below expectations, though the unemployment rate remained steady at 4.2%.

• Seoul stocks ended a three-day winning streak on Friday, with the benchmark Korea Composite Stock Price Index plummeting nearly 6 per cent. • The sharp decline was triggered by escalating tensions in the Middle East, which significantly reduced investor risk appetite.

• IBM reported its Q2 2026 earnings, characterized by modest revenue growth and a sharp decline in stock price despite non-GAAP earnings per share edging higher. • The company's software segment emerged as a positive highlight, while the infrastructure division faced headwinds and consulting revenue remained flat.

• Risk-off sentiment dominated the Asia session on July 24, 2026, as escalating Middle East tensions pushed crude oil prices above $100 per barrel and renewed global inflation concerns. • Canadian retail sales rose 1.0% in May with further increases expected in June, signaling consumer resilience and supporting the CAD, with USD/CAD trading between 1.4070 and 1.4080.