KOSPI Plunges Below 6,800 on Chip Shock, Triggering Circuit Breakers - Seoul Economic Daily

• Dow Jones futures fell 0.26% to approximately 52,620 on Tuesday, with S&P 500 and Nasdaq 100 futures also trading lower. • Market caution is driven by escalating US-Iran tensions following fresh precision strikes by US Central Command (CENTCOM) against Iranian military targets.

• Stock futures showed mixed results on Tuesday as investors prepare for key banking earnings reports and Congressional testimony from Federal Reserve Chair Kevin Warsh. • Markets are awaiting the June Consumer Price Index (CPI) report, with economists forecasting a year-over-year inflation rise of 3.8%, down from 4.2% in May, while core inflation is expected to remain at 2.9%.

• Global markets are experiencing volatility characterized by a rally in oil prices and a significant selloff in chip stocks. • Investors are shifting their focus toward the upcoming earnings season, which is expected to either restore market confidence or trigger further sharp declines.

• US stocks and treasuries remained steady as investors avoided major positions ahead of critical economic data and the unofficial start of the earnings season. • Market participants are awaiting upcoming testimony from Fed Chair Kevin Warsh and the release of new US inflation (CPI) data.

• On 12 June 2026, India's Ministry of Finance issued the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules to recalibrate the country's foreign investment regime. • The new regulations specifically target investment frameworks beyond those currently applicable to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).

• Japanese and South Korean equity markets experienced a "deep V-shaped recovery" on July 14, with the Nikkei 225 and KOSPI both closing slightly higher after a period of intense volatility. • The rally was led by major technology firms, including Samsung, SK Hynix, SoftBank, and Kioxia, all of which saw gains of approximately 3%.

• European stock markets remained subdued following an escalation of tensions in the Middle East. • The geopolitical flare-up has triggered an uptick in oil prices, contributing to market volatility and investor caution.

• European stock markets declined as renewed tensions between the United States and Iran sparked investor anxiety. • The conflict has raised significant concerns regarding oil supply stability, specifically focusing on potential disruptions in the Strait of Hormuz.

• European stocks declined in early trade, with the pan-European STOXX 600 index slipping 0.3% to 639.29. • This downturn follows the index's biggest weekly decline since late April, driven by dampened investor sentiment due to escalating tensions in the Middle East.

• European markets remained volatile on July 13, 2026, with oil prices holding higher as investors focused on escalating tensions between the US and Iran. • Chip stocks surged by 10% while gold prices plunged, a shift driven by a strengthening US dollar that some traders suggest signals a potential regime change.

• Deutsche Bank's stock remains steady as investors evaluate the lender's capital strength, profitability, and exposure to international markets. • The bank is currently undergoing a strategic transformation aimed at simplifying its business structure and improving capital ratios to enhance overall stability.