investingLive European markets wrap: Eurozone inflation ticks up in July; USD/JPY intervention again?

• Bond markets experienced a sharp sell-off following the Federal Reserve's decision to hold interest rates steady, indicating a growing disconnect between the central bank and investors. • Fed Chairman Kevin Warsh continues to advocate for a "quieter" central bank and a strategy of letting markets run their course, a vision he established prior to his appointment.

• Fed official Kevin Warsh baffled markets on Wednesday by refusing to explain how policymakers might react to various economic outcomes or when interest rates might be adjusted. • Warsh praised the recent increase in bond yields since the last Federal Reserve meeting, suggesting this trend assists the central bank's goals.

• The 30-year Treasury yield has spiked to its highest level in nearly two decades, signaling a lack of confidence in the Federal Reserve's ability to curb inflation. • Market volatility follows a perceived disconnect between the Fed's commitment to price stability and its decision to keep interest rates on hold.

• Leopold Aschenbrenner's hedge fund, Situational Awareness, has reportedly suffered steep financial losses. • The losses were driven by a decline in AI infrastructure stocks and unsuccessful short positions in software companies.

• European stocks reached record highs on Friday, continuing a period of outperformance compared to U.S. markets. • The rally was driven by strong corporate earnings and a surge in technology stocks, though gains were partially offset by a decline in Novo Nordisk A/S.

• Eurozone inflation rose slightly to 2.9% in July, according to the latest data released by Eurostat. • The increase reflects ongoing price pressures within the region, though the specific drivers of the uptick were not detailed in the brief report.

• EY Insights released its latest ‘Quarterly Economic Pulse’ report on July 30, 2026, urging Europe to enhance its innovation and strengthen the single market to remain competitive against China. • The report highlights Spain's economic resilience, forecasting a GDP growth rate of up to 2.5 per cent for the country.

• Indian stock markets ended slightly higher, with the Sensex gaining 166 points and the Nifty closing above 24,380. • Financial stocks drove the growth, highlighted by a significant surge in Bajaj Finance (+8.32%) and Bajaj Finserv (+6.37%) following June-quarter earnings.

• Global financial markets are experiencing a surge in risk appetite and improved sentiment following significant gains on Wall Street. • This positive trend is further supported by a sharp rebound across Asian equity markets.

• Wall Street reacted negatively after Federal Reserve Chair Kevin Warsh decided to hold interest rates steady instead of implementing a hike. • Analysts, including Bank of America's Mark Cabana and PGIM's Robert Sockin, described the move as a "credibility shock" and criticized Warsh for failing to explain the decision during his press conference.

• The Indian stock market saw a positive close, with the Sensex rising 270 points and the Nifty ending above the 24,300 mark. • Major Asian markets experienced significant gains, including Taiwan's benchmark rising 1.66% to 40,705.65, South Korea's Kospi jumping 3.55%, and Japan's Nikkei climbing 1.43%.