Shocks

• JPMorgan Private Bank forecasts the S&P 500 will rise 10% over the next 12 months, with a long-term target of 8,200 by mid-2027. • The optimistic outlook is driven by second-quarter earnings data showing the index is on track for its highest net profit margin since the Great Financial Crisis. • Analyst Gupta notes that demand from both retail and institutional investors remains "off the charts," suggesting strong market momentum.

Military mobilises thousands of personnel after quake on southern Kyushu island that registered a maximum 7 on the Japanese shindo intensity scale At least five people have been killed, and nine are missing after a 6.8 magnitude earthquake struck southern Japan on Tuesday, injuring hundreds and knocking out power and water to tens of thousands.The quake – which registered a maximum 7 on the Japanese shindo intensity scale – hit at 4.27pm on Tuesday, centred on Kumamoto prefecture on the southern Kyushu island. Continue reading...

• Asian financial markets experienced a sharp decline on Tuesday, led by a selloff in semiconductor and technology stocks. • The Nikkei 225 in Japan fell 3.61% to 62,584.24, while the KOSPI in South Korea dropped 7.60% to 6,221.81, with companies like Tokyo Electron, Advantest, Samsung Electronics, and SK Hynix facing heavy selling. • A reported breakthrough in Chinese extreme ultraviolet lithography manufacturing contributed to the decline, raising fears of structural changes in the tech industry.

• European equity markets have maintained growth and resilience following a strong performance in 2025, according to recent analyst reports. • The market's stability persists despite significant headwinds, including acute exposure to geopolitical shocks and ongoing macroeconomic challenges. • Analysts highlight that this growth is particularly notable given the region's relative lack of high-growth AI stocks compared to other global markets.

• The head of the International Fund for Agricultural Development (IFAD) warned that ongoing conflicts and energy market disruptions are threatening global progress in the fight against hunger. • These instabilities are driving up the costs of essential commodities, including fuel, fertilizer, and food, which could push millions more people into food insecurity. • A new United Nations report highlights that current gains in reducing global hunger remain fragile and susceptible to these external economic shocks.

• A series of AI updates includes upgrades to Claude and ChatGPT desktop apps, alongside the release of the Kimmi K3 model featuring 3 trillion parameters. • Legal and corporate tensions are rising, highlighted by a bias lawsuit against Meta and public criticism from Microsoft's CEO regarding Anthropic. • Strategic delays are impacting the market, specifically with the postponed release of Google’s Gemini 3.5 Pro.

Chancellor says PM-in-waiting needs ‘worked through plan’, in what could be one of her final interviews in No 11Rachel Reeves has urged Andy Burnham to arrive in Downing Street with a “worked through plan”, saying the incoming prime minister will be tested quickly by a range of incoming “shocks and challenges”.In what could be one of the first female chancellor’s final major interviews while in No 11, Reeves said Burnham should remain focused on the priorities that first brought him into politics. Continue reading...