Germany: Record debt and a seismic policy shift

• Major US stock indexes declined on Tuesday, July 7, 2026, as a downturn in AI-related stocks dragged down overall market performance. • The S&P 500 fell 0.4% for the day, despite the fact that the majority of individual stocks within the index actually saw gains.

• Foreign Direct Investment (FDI) in India has reached a five-year high, driven by strong capital inflows and resilient domestic demand despite global trade headwinds. • The services sector emerged as the primary growth engine with a 10% expansion, followed by industry growth of 7.3% and a more subdued 3.6% increase in agriculture.

• Indian companies are shifting capital away from physical assets like factories and machinery toward financial investments, inorganic growth, and overseas expansions. • This trend is driven by weak domestic demand, existing spare capacity, and global economic uncertainty, which have stalled the next private capital expenditure (capex) cycle.

• Mehul Kothari, DVP of Technical Research at Anand Rathi, issued stock buy recommendations for July 7 and 8, 2026. • The top recommended stocks to purchase include Hero MotoCorp and Tata Steel.

• Brent crude oil is trading in the mid-$70s and WTI is priced above $70 per barrel. • The price increase is driven by escalating geopolitical tensions between the United States and Iran.

• S&P Dow Jones has placed Indonesia's stock market on a watchlist for a potential reclassification from "emerging market" to "frontier market" status. • This follows a similar warning from MSCI, marking the second major index provider to signal a possible downgrade for the Southeast Asian nation.

• Economist Adam Ozimek reports that the U.S. trade deficit remains high while tariff revenues are exhibiting a negative trend. • These findings raise significant doubts regarding the effectiveness of current U.S. trade policies and their ability to reduce deficits.

• The U.S. trade deficit widened significantly in May, primarily driven by a sharp increase in the import of capital goods. • Bradly Saunders, North America Economist at Capital Economics, noted that while the expansion is severe, its direct implication for GDP is slightly mitigated.

• South Korea's Kospi index plummeted 4% in a single session, marking a total crash of 9% over three consecutive trading days. • The downturn was driven by significant share price drops in heavyweight Samsung Electronics and a surge in net selling by foreign investors.

• U.S. special forces soldier Gannon Ken Van Dyke is facing insider trading charges for allegedly betting on the outcome of a planned operation to remove Venezuelan President Nicolás Maduro. • Prosecutors claim Van Dyke used classified, advance knowledge of the imminent operation to place profitable bets on prediction markets.

• Global foreign direct investment (FDI) flows rose by 6% last year, totaling $1.6 trillion and reversing a two-year decline. • According to the UN Trade and Investment’s World Investment Report 2026, released on July 7, the surge was primarily driven by the AI boom in advanced economies.