International markets update:
Global markets are grappling with new U.S. tariffs that have sparked international frustration, alongside a downturn on Wall Street driven by tech stock pressure and rising oil prices. European corporates are also reporting weaker earnings, contributing to a cautious market sentiment.
- The U.S. has imposed new tariffs on 60 economies under Section 301 for alleged failures to enforce bans on forced labor goods, drawing strong condemnation from major trading partners like Brazil, Australia, and Japan who labeled the move “arbitrary” and “unjustified”.
- Wall Street closed lower, primarily pressured by major tech stocks, while rising oil prices and Treasury yields further spooked investors, contributing to a broader market decline.
- Stocks across Asia fell, led by significant declines in South Korea’s Kopsi and Japan’s Nikkei 225, reflecting the negative sentiment from global trade tensions and Wall Street’s performance.
- German car giant Volkswagen cut its 2026 sales guidance after a significant profit slump in the second quarter, signaling potential model lineup reductions and substantial job cuts.
- Europe’s technology leader SAP revised its profit outlook downwards, citing higher costs associated with its AI acceleration strategy, including over €100 million in dilutive impact from recent AI data acquisitions.
- U.S. lawmakers introduced the ‘AI Kill Switch Act,’ a bill requiring artificial intelligence companies to maintain the capability to shut down or suspend their models, in response to concerns about powerful AI systems potentially going rogue.
Stock Market News summarised for the Wall Street Investors Club community.