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GLOBAL MARKETS-Stocks steady as oil surge offsets ASML boost to tech shares
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GLOBAL MARKETS-Stocks steady as oil surge offsets ASML boost to tech shares
Jul 15, 2026 2:25 AM

(Writes through, updates prices after European market open)

* World stocks steady, ASML lifts tech

* Soft US inflation keeps rate hike bets in check

* Focus on Warsh, US PPI and earnings

* China growth misses, Brent tops $85/bbl

By Danilo Masoni and Tom Westbrook

MILAN/SINGAPORE, July 15 (Reuters) - World shares steadied

on Wednesday as upbeat earnings from chipmaking equipment maker

ASML and gains in Asian semiconductor stocks recharged the AI

trade, offsetting a jump in oil prices on fresh hostilities

involving Iran.

The pan-European STOXX 600 index was down 0.05% by

0849 GMT after rallying the previous day when

softer-than-expected U.S. inflation data cooled concerns about

higher interest rates, pushing the dollar and yields lower.

Tech-heavy markets in the United States and Asia fared

better. Nasdaq futures rose 0.5%, while South Korea's

volatile KOSPI index jumped 6.2% and Japan's Nikkei

gained 1.5%. "The divergence between the U.S. and

Europe seems to be driven mainly by technology stocks, which are

outperforming again," said Swissquote senior analyst Ipek

Ozkardeskaya. "ASML's results came in sweet."

The world's biggest supplier of chipmaking equipment

raised its 2026 forecasts and announced plans to expand

capacity, as demand linked to artificial intelligence helped the

company beat quarterly earnings expectations.

Its shares rose as much as 8% in Amsterdam, helping

other AI-related stocks after recent volatility driven by

concerns over valuations and AI spending expectations had

outpaced fundamentals.

The MSCI World Price Index rose less than

0.1%.

On Tuesday, the U.S. headline consumer price index fell 0.4% in

June, its first decline since the COVID-19 pandemic, while core

inflation for the month was flat.

Bond yields and the dollar fell after the data, leaving the euro

above $1.14 on Wednesday. Two-year Treasury yields

edged up 1 basis point to 4.2% on Wednesday but

remained roughly 9 basis points below Tuesday's 17-month high.

"For market bulls this is even better than Goldilocks could

have imagined," J.P. Morgan analysts said in a client note.

"This print should remove any fears over a July rate hike

and may assuage fears on September, too. This sets up the market

to move higher and to broaden as it does so."

Further gains were tempered after Federal Reserve Chair

Kevin Warsh told Congress that one benign inflation reading was

not enough to declare victory over inflation.

Investors will closely watch his testimony later on

Wednesday, along with U.S. producer price data and the Fed's

Beige Book, for further clues on the policy outlook.

In Europe, Germany's 2-year bond yield rose 1

basis point to 2.756%, though it remained below Tuesday's 2-year

high.

EARNINGS ON THE RADAR

Attention will also turn to earnings from Morgan Stanley ( MS ),

BlackRock ( BLK ) and Johnson & Johnson ( JNJ ) before the

morning bell, following a strong start to the reporting season

from Wall Street banks that buoyed risk sentiment.

Goldman Sachs ( GS ), JPMorgan ( JPM ) and Bank of America ( BAC )

all gained after better-than-expected results reinforced

hopes that corporate earnings can continue to justify elevated

equity valuations despite lingering economic uncertainty.

The Bank of Canada's policy decision is also due later on

Wednesday. The Canadian dollar was broadly steady at $1.4051.

Oil extended gains on Wednesday as President Donald Trump

reimposed a naval blockade on Iranian ports and Tehran launched

strikes on U.S. infrastructure in the region.

Brent futures climbed 0.7% to $85.31 a barrel.

In China, annual economic growth slowed sharply to 4.3% in the

second quarter, missing analysts' expectations as weak domestic

demand outweighed stronger production and exports.

A rebound in Chinese retail sales in June, relatively strong

nominal GDP and hopes that authorities will respond were the

positives for investors.

"I don't think they will be worried enough to announce any

big stimulus, but it is going to be targeted, since they are

aware that growth is only for the tech areas whereas the broader

economy is continuing to underperform," said UOB economist Woei

Chen Ho.

China's yuan traded at 6.7715, just below a

one-month high.

Spot gold was down 0.7% at $4,023.7 per ounce, paring

part of Tuesday's more than 2% surge as rising oil prices

fuelled inflation concerns and uncertainty over the U.S. rate

outlook.

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