Cautious

• The UK stock market, including the FTSE 100, FTSE 250, and FTSE All-Share, is expected to open on a positive note following a streak of six consecutive quarterly gains. • Market optimism is being driven by easing inflation rates and a notable increase in mergers and acquisitions (M&A) activity across various sectors. • The London Stock Exchange Group (LSEG) is highlighted as a key stock to watch, currently trading near 8,076 GBX with a "Strong Buy" consensus and a 12-month target of 12,145 GBX.

• Global financial firms are shifting their Asia-Pacific expansion focus toward South Korea, according to a recent survey conducted by ASIFMA and KPMG. • This strategic pivot is driven by South Korea's regulatory clarity, stable policy environment, and emerging capital market opportunities. • Conversely, firms are adopting a more cautious stance regarding investments in China and India due to operational challenges and geopolitical risks.

• A survey by ASIFMA reveals that two-thirds of 34 global financial firms plan to expand their Asia-Pacific operations over the next three years. • South Korea has emerged as a primary pivot point for growth, while firms express increased caution regarding investments in China and India. • Singapore continues to maintain strong appeal for financial institutions due to its strategic, multipolar geopolitical positioning.

• Asian equities traded cautiously on Monday, with Japan's Nikkei slipping 1% and South Korea's Kospi falling nearly 2%, dragging the MSCI Asia-Pacific index down 0.4%. • Market instability is being driven by lingering uncertainty regarding a Middle East ceasefire and investor fears that the US Federal Reserve may implement further interest rate hikes. • The situation is further complicated by the US dollar hovering near a one-year high, though US and European futures showed slight gains of 0.4% and 0.2% respectively.

• Intercontinental Exchange (ICE), the owner of the NYSE, is currently trading significantly below optimistic analyst price targets. • Zacks has assigned the company a Rank 3 "Hold" rating, citing a balance between favorable growth estimates and valuation compression. • The company is facing slower-than-expected growth and integration benefits following its acquisition of Black Knight.

• Financial analysts have updated their outlooks on key AI-related companies, notably hiking price targets for Micron Technology due to strong demand for AI memory. • Market experts are expressing caution regarding the current valuation of SpaceX, suggesting potential risks associated with its high pricing. • These shifts reflect a broader trend of analysts recalibrating expectations as AI infrastructure growth accelerates while private space valuations face scrutiny.

• On June 25, the Indian stock market saw cautious gains, with the Sensex closing at 77,100.47 (up 109.25 points) and the Nifty 50 ending at 24,056.00 (up 34.35 points). • The market growth was primarily supported by a decline in crude oil prices, which returned to levels seen before the Iran conflict. • Additional positive momentum was driven by recent government policy measures designed to strengthen the rupee and attract more overseas investment inflows.

• European markets opened with caution on Thursday as investors anticipate a key interest rate decision from the European Central Bank (ECB). • The ECB is widely expected to implement a 25 basis point rate hike, marking the first increase since 2023. • This policy shift is a response to rising inflation driven by higher energy prices linked to the conflict in Iran.

• Deloitte released a new M&A Pulse Survey featuring insights from 500 corporate and private equity (PE) leaders regarding current market trends. • The findings reveal a sense of "cautious optimism" for deal activity leading into 2026, with leaders emphasizing a more disciplined approach to acquisitions. • Cross-border acquisitions are highlighted as a primary strategic path for growth as dealmakers seek new opportunities.

• GIFT Nifty declined on Tuesday, signaling a likely weak opening for India's benchmark Sensex and Nifty indices. • Market sentiment has been dampened by escalating tensions between Iran and Israel, which have contributed to rising global oil prices. • Investors are maintaining a cautious approach as geopolitical instability in the Middle East creates volatility across Asian markets.