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20 July, 2026
Beyond words goes here
Financial markets remain resilient despite a sharp escalation in the Middle East. Equity markets are treating this as an energy shock, which will have limited deterioration for global growth potential going forward.
Soft inflation prints last week came from a period before the recent spike in energy, leaving policy makers reluctant to declare the fight over inflation is over. Again, chipmakers came under pressure as some question whether the buildout of artificial intelligence have run too far to justify their elevated valuations.
Looking ahead to this week, markets will focus on a heavy earnings week in the US, as the week will be light on macro data points. 18% of S&P market cap will report earnings this week, with focus on Hyperscaler capex numbers (GOOG/GOOL, TSLA on Wednesday) as well as broader industrials/defense names (LMT, RTX, HON, UNP on Thursday). Little in terms of US macro data, while FOMC enters blackout Saturday ahead of the 29th July rate decision. We will be watching ECB decision expecting no move, as well as Burnham’s installation as UK PM on Monday.
Source: Bloomberg as of 20/07/2026.
The chart shows the MSCI World Index in Euro terms, and the MSCI World Momentum index in Euro terms.
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