Private Credit Market Stress Adds to US Investor Caution

• Energy markets are experiencing significant volatility following an escalation of conflict in the Middle East. • Key drivers include the United States expanding the scope of its airstrikes and Houthi rebels, allied with Iran, implementing a maritime blockade in the Bab-el-Mandeb Strait.

• European shares declined as technology stocks faced pressure from weak semiconductor earnings and growing concerns regarding AI spending. • Energy stocks saw gains as escalating tensions in the Middle East drove up Brent crude oil prices.

• Amidst volatility in the STOXX Europe 600 Index, investors are seeking undervalued opportunities based on corporate earnings and geopolitical trends. • Momentum Group AB, a Nordic industrial component supplier with a SEK7.23 billion market cap, is highlighted as potentially trading at a discount.

• The European Central Bank (ECB) is expected to keep its main policy rate steady at 2.25% during today's meeting. • Investors are closely monitoring the ECB for hints regarding potential policy shifts in September, which will include updated economic forecasts.

• The European Central Bank (ECB) is expected to keep interest rates steady during its upcoming policy meeting. • While holding rates, policymakers are likely to signal that further hikes remain a possibility for September.

• First BanCorp (NYSE:FBP) released its second-quarter 2026 financial results and hosted a corresponding earnings call on Wednesday. • The company reported a positive future outlook, maintaining loan growth guidance of 3% to 5% for the 2026 fiscal year.

• UniCredit CEO Andrea Orcel indicated that a potential acquisition of Commerzbank could occur in the fourth quarter of this year. • Orcel noted that the two institutions remain "very different," meaning several operational alignments must be completed before a full merger can be finalized.

• Major U.S. stock indexes remained largely flat on Wednesday, July 22, 2026, showing minimal movement despite volatility in other sectors. • The stagnation occurred as oil prices rose by an additional 3%, putting potential pressure on energy costs and inflation.

• The KOSPI index failed to recover the 7,000-point mark and ended the trading session lower, reversing a previous 5% surge. • Market volatility triggered a buy-side sidecar, as gains in the semiconductor sector were erased, stripping the index of its upward momentum.

• South Korea's Kospi index surged 4% on Thursday, marking a total jump of 9% over three days following a significant market crash. • The rally was driven by chip stocks, with Samsung Electronics and SK Hynix climbing up to 6% amid robust AI spending plans from US tech giants.

• On July 24, the Korean stock market recorded several corporate actions, including share cancellations by JB Financial Group, Hansae MK, and Daekyo. • Capital reductions were implemented by Dynamic Design and T'way Holdings, while ToolGen set its record date for new share allocations via a rights offering.

• U.S. District Judge Araceli Martínez-Olguín issued a temporary restraining order on Monday to pause the acquisition of Warner Bros. by Paramount's owners. • The ruling disrupts the timeline for the deal, which Paramount's owners had hoped to finalize within the current week.