Economy
China chipmaker CXMT shoots skyward in blockbuster Shanghai listing
Shares of CXMT, China’s largest memory chipmaker, shot skyward Monday as they began trading in Shanghai in mainland China’s biggest initial public stock offering in recent years.
CXMT’s shares surged 466% in their first day of trading. The company has become the most valuable one listed on a mainland Chinese exchange, with an estimated market capitalization of about 3.3 trillion yuan (more than $487 billion).
But that’s still smaller than those of South Korean and American memory chipmakers like Samsung Electronics, SK Hynix and Micron Technology.
CXMT, or ChangXin Memory Technologies, is among many chipmakers that have profited mightily from the boom in artificial intelligence. Its business is thriving as China pushes for greater self-sufficiency in leading-edge technologies while contending with limited access to advanced chipmaking machines due to American-led restrictions.
The company raised at least $8.6 billion with the offering, priced at 8.66 yuan ($1.3) per share, in its listing on the Shanghai Stock Exchange’s Nasdaq-like STAR market, also known as the Science and Technology Innovation Board.
It was mainland China’s second largest IPO after the $22.1 billion share offering of Agricultural Bank of China in Shanghai and Hong Kong in 2010.
Founded in 2016 in the eastern city of Hefei, CXMT is one of the world’s largest makers of DRAM, or “dynamic random access” memory chips, a kind of semiconductor used in everything from AI servers to autos and consumer electronics like smartphones and personal computers.
“CXMT plays a critical role in China’s AI push, particularly in the face of U.S. export controls,” said Kyle Chan, a fellow at the Brookings Institution and an expert in China’s technology policies.
U.S. restrictions have also barred China from importing powerful HBM, or high-bandwidth memory chips – a type of DRAM chip.
Trade curbs key challenge
The company’s revenue surged to 50.8 billion yuan ($7.5 billion) on jumping demand from the rapid rise of AI in the first three months of 2026, a more than 700% rise year-over-year.
Soaring use of AI has led to a global memory chip shortage, driving up prices for some computers and smartphones. One big question, Chan said, is whether CXMT could help with the broader shortage.
CXMT is seen as China’s best shot at developing its own cutting-edge HBM chips to power Chinese AI models, Chan said. But it also faces many challenges, including supply chain bottlenecks in scaling up manufacturing capacity, since its access to the world’s best chipmaking tools is highly restricted, forcing it to depend on Chinese equipment makers.
According to Counterpoint Research, a technology research firm, CXMT was the world’s fourth biggest DRAM memory chipmaker in 2025 by shipments, taking up roughly 8% of the global market. Samsung Electronics accounted for 36%, SK Hynix 29% and Micron about 24%.
In the first three months of this year, CXMT accounted for approximately 9% of global shipments. By 2028, its market share is forecast by Counterpoint Research to reach about 11%. But the research firm estimated CXMT will likely need at least a 15% global market share to be competitive in the long term.
“Trade restrictions on tools are remaining as the key challenge for CXMT,” said MS Hwang, a research director at Counterpoint who specializes in memory semiconductors.
Some U.S. lawmakers have also recently called for President Donald Trump’s administration to block American companies from buying CXMT’s memory chips over national and economic security concerns.
CXMT is one of many Chinese companies the Pentagon claims have links to the Chinese military. Beijing has rejected such designations in most cases.
CXMT’s public share offering followed a $26.5 billion IPO by South Korea’s SK Hynix on the Nasdaq earlier this month.
Ukrainian forces have been targeting Russia’s energy infrastructure in what Kyiv says is an attempt to limit the resources available to fund Moscow’s military.
Here is a summary of the attacks, beginning with the most recent, and their effects:
Tyumen
A Ukrainian drone strike sparked a fire at the Tyumen refinery in western Siberia, more than 2,000 km (1,200 miles) from Ukraine, but the blaze was later extinguished, local Russian authorities said on July 25.
The refinery has a nominal capacity of around 8 million metric tons per year. It processes roughly 6 million tons of crude annually, producing about 0.5 million tons of gasoline and 2.5 million tons of diesel, according to industry estimates.
Yaroslavl
Ukrainian forces attacked Russian oil facilities in Yaroslavl, some 250 km northeast of Moscow, on July 27, President Volodymyr Zelenskyy said.
The refinery in Yaroslavl has processing capacity of 15 million metric tons per year, or around 300,000 barrels per day.
Salavat
Salavat petrochemical complex, in the Urals region of Bashkortostan, halted operations on July 14 following a Ukrainian drone attack, industry sources said.
Afipsky
A fire broke out at the Afipsky oil refinery in Russia’s southern Krasnodar region as a result of falling drone debris, the emergency services said on July 14. The refinery can process over 9 million metric tons of oil per year.
Syzran
Russia’s Syzran oil refinery on the Volga River in the Samara region halted operations after a Ukrainian drone attack on July 12 damaged a primary processing unit, industry sources said.
On May 21, Ukrainian drones struck the Rosneft-owned refinery. The refinery halted operations after the attack damaged a primary processing unit. It had previously suspended oil refining after attacks on April 18.
The refinery has a processing capacity of 8.5 million tons per year. In 2024, it processed 4.3 million tons of crude into 800,000 tons of gasoline, 1.5 million tons of diesel and 700,000 tons of fuel oil, according to industry sources.
Saratov
Russia’s Saratov oil refinery stopped oil processing on July 9 following damage from a drone attack, two sources said.
In 2024, the plant processed 5.8 million tons of oil, or 2.2% of Russia’s total refining output, producing 1.2 million tons of gasoline, 1.9 million tons of diesel and 1 million tons of fuel oil.
Ilsky
Russia’s Ilsky oil refinery in the southern Krasnodar region caught fire after a drone attack, local officials said on July 10.
The refinery’s design capacity is over 6 million metric tons of oil per year.
Omsk
Ukrainian drones struck the Omsk refinery on July 6, causing a fire. Russian air defenses destroyed most of the drones involved in the attack, Governor Vitaly Khotsenko said. It was not immediately clear how much damage the refinery had sustained.
The design capacity of the Omsk oil refinery is approximately 22 million metric tons of oil per year.
NORSI
Ukrainian drones hit NORSI, Russia’s fourth-largest oil refinery, owned by Lukoil, for a second time on July 2, and crude processing was suspended, according to sources.
They said the attack had damaged a primary refining unit, CDU-6, which is usually able to process 25,700 metric tons per day, accounting for 53% of the refinery’s overall capacity.
NORSI, which is Russia’s second-largest producer of gasoline, can process 16 million metric tons of oil per year, or around 320,000 barrels per day.
Slavyansk
Ukrainian drones struck Russian targets including the Slavyansk oil refinery in the southern Krasnodar region on June 28, local authorities said.
Slavyansk refinery is a private plant with a capacity of about 100,000 barrels per day.
Ufa
Ukraine’s forces struck an oil refinery for a second time on July 1 in the city of Ufa, near the southern Ural mountains.
The refinery can process more than 7 million tons of oil per year.
Orenburg
Ukraine’s military said on June 24 it had struck Orenburg gas processing plant, which has a capacity of 45 billion cubic meters of natural gas per year.
Moscow
Moscow oil refinery halted operations after a Ukrainian drone attack on June 16, sources said. On June 18, another attack damaged processing units and sparked multiple fires.
The facility in the capital’s southeastern Kapotnya district has an annual capacity of around 11 million tons of oil.
TANECO
Russian Tatneft’s TANECO oil refinery halted operations after a drone attack on June 12.
It is one of Russia’s most technologically advanced refineries, equipped with hydrocracking, catalytic cracking and delayed coking units.
TANECO processed 17 million tons of crude oil in 2024, producing 2.7 million tons of gasoline, 8.5 million tons of diesel fuel and 1.3 million tons of petroleum coke, according to industry data.
Kuibyshev
Rosneft’s Kuibyshev oil refinery halted processing on June 10 after a drone attack.
The refinery processed 4.7 million tons of crude in 2024, according to industry sources.
Tuapse
Ukraine struck a refinery in the Black Sea port of Tuapse on May 27, Ukraine’s military said. A drone attack caused a major fire at the refinery on April 28, officials said, causing the facility to halt operations.
It has a capacity of around 12 million tons per year and produces naphtha, diesel, fuel oil and vacuum gasoil.
Ports/oil facilities
The Caspian Pipeline Consortium stopped receiving oil from July 20 following the suspension of loadings due to attacks on oil tankers at its Black Sea terminal, which was set to resume oil loadings later on Monday, three industry sources told Reuters.
Ukrainian drones struck the Filanovsky oil platform belonging to Russia’s Lukoil in the Caspian Sea, Kyiv’s security service said on July 25.
Ukraine struck two Russian oil depots in the Tver and Stavropol regions, both about 500 km from the front line, President Zelenskyy said on July 9.
Ukrainian drones on July 8 struck the Krasnodarskaya pumping station, part of the natural gas supply chain to Türkiye via the Blue Stream pipeline, but gas supplies were not affected.
Ukrainian drones struck an oil pumping station in Russia’s Bashkortostan region, more than 1,500 km from the border, Kyiv said on July 8.
Ukrainian drone attacks on July 6 damaged the Baltic Sea ports of Vysotsk and Ust-Luga, a major oil exporting outlet, and caused a power blackout in the Crimean city of Sevastopol, home to Russia’s Black Sea Fleet, authorities said.
A loading complex caught fire in the Black Sea port of Novorossiysk after a drone attack, authorities said on June 8.
Higher reservoir levels in Türkiye helped drive hydroelectric power generation to a record in the first half of the year, boosting the renewable source’s share of electricity production to more than 32%, according to official data.
Data compiled from Turkish Electricity Transmission Corporation (TEIAŞ) water reports showed dam fill levels reached 71.3% as of July 19, up from 61.4% a year earlier and 51.7% two years ago.
The total active water volume in dams across the country rose to 72.53 billion cubic meters, compared with 30.24 billion cubic meters in the same period last year, reflecting a 139.9% increase in water inflows.
The stronger water supply translated into a sharp rise in hydropower generation.
Electricity output from hydroelectric plants increased 68% year-over-year in the first six months of the year to 57 billion kilowatt-hours (kWh), up from 33.9 billion kWh a year earlier.
As a result, hydroelectric power accounted for more than 32% of Türkiye’s total electricity generation during the period.
Renewables are a key part of Türkiye’s broader push to diversify energy supply and reduce its heavy import dependence.
Supported by strong investment and favorable weather conditions, renewable generation climbed to new highs this year, led by a sharp rebound in hydropower after last year’s drought and rising solar output.
Türkiye experienced its driest year in half a century in 2025, when hydropower’s share in electricity generation fell to as low as 16%.
Hydroelectric power plants accounted for 32,314 megawatts of the country’s 125,800-megawatt total installed power capacity in the first half of this year.
Türkiye ranks among the world’s top 10 countries and second in Europe in terms of hydropower capacity.
Elvan Tuğsuz Güven, chair of the Hydroelectric Power Plants Industrialists Association (HESIAD), said last week that hydropower generation helped Türkiye avoid nearly $5 billion in energy imports so far this year.
Industry representatives have this year been highlighting the potential of pumped-storage hydropower, which stores excess electricity by pumping water to elevated reservoirs and releasing it during periods of high demand.
According to preliminary studies by the State Hydraulic Works, Türkiye has 13.9 GW of pumped-storage hydropower potential, equivalent to around 11% of total installed capacity.
TEIAŞ data showed water inflows accelerated particularly during the spring months, with May recording the highest monthly inflow at 19.3 billion cubic meters.
Reservoirs also received between two and three times more water than a year earlier during February, April and June.
During the first 19 days of July alone, inflows to the country’s main reservoir basins totaled 3.44 billion cubic meters. Daily inflows peaked at 217.4 million cubic meters on July 1 and reached a low of 147.2 million cubic meters on July 16.
Major hydroelectric reservoirs benefiting from the higher inflows included Keban, Deriner, Altınkaya, Hirfanlı, Boyabat, Oymapınar and Alpaslan-1, while other facilities such as Adıgüzel, Alkumru, Batman, Dicle, Ermenek, Hasan Uğurlu, Karacaören, Kemer, Kralkızı, Özlüce, Sarıyar, Torul, Yamula and Yedigöze also recorded improved water availability.
The report showed cumulative inflows during the first seven months reached 72.53 billion cubic meters, exceeding both the long-term average of 55.93 billion cubic meters and the official program target of 37.18 billion cubic meters.
Water inflows reached 195.1% of the planned target and stood 29.7% above the long-term average.
Shipping traffic through the Bab el-Mandeb dropped on Sunday after Yemeni Houthis attacked Saudi oil facilities along the Red Sea coast, while transit through the Strait of Hormuz remained low over the weekend, according to data on Monday.
Eleven commodity vessels passed through the Bab el-Mandeb Strait on Sunday, the lowest level in months, the shipping data from Kpler showed.
Red Sea traffic has been disrupted off the coast of Yemen since last week by the Tehran-aligned Houthis, who want to blockade Saudi exports, expanding the U.S.-Iran conflict that has already choked oil supply through the Strait of Hormuz.
The shipping disruption caused prices of physical crude cargoes in the Middle East, Europe and Africa to jump to two-month highs last week.
Seven of the vessels that passed through Bab el-Mandeb were oil tankers, with three of them entering the Red Sea. Two of them are very large crude carriers (VLCCs) heading to the port of Yanbu to load Saudi crude, while the third is a Russian-linked ship, the data showed.
The four vessels that exited the Red Sea on Sunday included the Hong Kong-flagged VLCC New Explorer carrying 2 million barrels of Saudi and Emirati crude for eastern China’s Ningbo port, a tanker carrying 1 million barrels of Russian crude for China and a tanker with about 750,000 barrels of Saudi crude onboard for Pakistan, the data showed.
Another Hong Kong-flagged VLCC, New Pearl, carrying 2 million barrels of Saudi crude is exiting the Red Sea via Bab el-Mandeb strait for eastern China’s Zhoushan port, the fourth Chinese supertanker to leave since the Houthis declared a naval blockade.
Associated Maritime Hong Kong, the manager for New Explorer and New Pearl, did not immediately respond to a request for comment outside office hours.
Houthi military spokesperson Yahya Saree said the group struck sites belonging to Saudi state oil company Aramco in the cities of Jizan and Yanbu on Saturday.
Hormuz
Fewer than 10 commodity vessels passed through the Strait of Hormuz daily over the weekend even though the U.S. and Iran have paused strikes in the Middle East, data from Kpler showed.
Seven vessels transited on Sunday, including three Iranian-linked oil products tankers that exited the Strait.
On Saturday, there were only three vessels that passed through with their transponders switched off. These include a VLCC heading to Qatar to load oil, a liquefied petroleum gas tanker going to the Ruwais port in the United Arab Emirates (UAE) to load a cargo and a tanker carrying Qatari naphtha that was heading to Japan, the data showed.
On Friday, seven vessels passed, mostly exiting the Gulf, including two VLCCs carrying crude from Iraq and the UAE and a tanker carrying fuel oil.
Employment in Türkiye’s construction sector reached a record this May, as urban renewal projects gathered pace across the country, particularly in Istanbul, according to official data.
The number of salaried employees in construction rose 1.2% year-over-year to 1.93 million in May, marking the highest level ever recorded for the month, according to data compiled from the Turkish Statistical Institute (TurkStat).
The sector added 22,576 workers compared with the same month a year earlier.
Across the broader economy, total salaried employment in the industrial, construction and trade-services sectors increased 0.5% annually to 15.97 million. Employment declined 3.2% in industry, while trade and services recorded a 2.3% increase.
Within construction, 1.27 million people were employed in building construction, 248,252 in civil engineering projects and 418,461 in specialized construction activities. Employment in those segments rose 1%, 4% and 0.1%, respectively.
Industry representatives attributed the record employment levels largely to accelerating urban transformation projects.
More than 276,000 independent housing units were undergoing urban renewal across Istanbul’s 39 districts as of July, which sector representatives say reflects continued momentum of redevelopment efforts.
Ali Hepşen, a professor at Istanbul University’s Faculty of Business, said the data indicated that activity in the sector remains resilient.
“This data shows that the recovery in the construction sector is continuing not only on the production side but also on the employment side,” Hepşen told Anadolu Agency (AA).
Emphasizing that attention should be paid to the fact that employment growth is occurring at different rates across various sub-sectors, Hepşen said, “While the 4% increase in nonbuilding construction reflects the impact of infrastructure and public investments, the 1% rise in building construction points to a more limited momentum.”
Meanwhile, the 0.1% increase in private construction activity indicates that a cautious outlook persists in certain areas of the sector, he added.
Hepşen said urban renewal projects, strong housing sales and reconstruction work in Türkiye’s earthquake-hit regions had been the main drivers supporting employment.
However, he added that tight financing conditions and slower-than-desired new housing supply continued to limit stronger job creation.
Engin Keçeli, chair of the Association of Constructors and Real Estate Developers (INDER), said production in the construction sector has accelerated compared to previous years, adding that both new projects and urban transformation had contributed to higher employment.
Keçeli noted that May and the other summer months are a period of intense activity for construction output.
“We are the most dynamic sector; we work nonstop. Right now is also the busiest time of year for us. The increase in the number of apartments for which building permits were issued was already an indication that construction activity would pick up. Employment data also confirmed this,” he said.
He also cited improved predictability in exchange rates and construction costs as factors encouraging developers to accelerate activity.
Indonesia’s central bank governor stepped down on Monday, in a surprise move that deepens uncertainty as the country grapples with a weakening currency and other economic woes brought on by the Middle East war.
President Prabowo Subianto has accepted the resignation of Perry Warjiyo, who had served as Bank Indonesia’s (BI) governor since 2018, State Secretary Prasetyo Hadi told reporters in Jakarta.
Warjiyo, whose second term was meant to expire in 2028, cited unspecified personal reasons for the surprise resignation, which he tendered on Saturday.
The bank’s senior deputy governor, Destry Damayanti, has been appointed interim governor, said Hadi.
The rupiah weakened as much as 0.36% to 18,000 to the U.S. dollar following the announcement, while the main stock index flipped between gains and losses in choppy trade.
The stock market and currency remained “quite stable” in the hours after the government announced Warjiyo’s resignation, Bank Central Asia chief economist David Sumual told Agence France-Presse (AFP).
But the move “may cast further policy uncertainty, which may not translate well to the rupiah and the economy in general.”
The rupiah has taken a battering from surging energy costs, shedding about 7% since the Middle East conflict erupted in February to become Asia’s worst-performing currency, according to financial outlet Bloomberg News.
BI surprised markets last week by keeping policy rates unchanged, instead offering new incentives to attract foreign capital inflows aimed at supporting the rupiah.
The bank has lifted its key interest rate by 100 basis points this year to 5.75% in an effort to shore up the rupiah.
Deni Friawan, a researcher at the Jakarta-based Center for Strategic and International Studies, said Warjiyo’s surprise resignation could spook investors.
“Markets dislike surprises,” he told AFP.
“When a central bank governor steps down unexpectedly, investors naturally question the future direction of monetary policy, inflation control, and exchange rate management.”
Replacement closely watched
Warjiyo, who started his career at BI in 1984, was first appointed as governor in 2018. He was reappointed for a second five-year term by Subianto’s predecessor in 2023.
Analysts say the choice of Warjiyo’s permanent replacement will be closely watched.
“Given the current environment of heightened uncertainty, policymaking experience and credibility should be key in picking a successor,” said Sumual.
To Friawan, “if the appointment is perceived as politically driven, investors may begin to question the institution’s credibility. And that is a far more serious risk than the resignation alone.”
The appointment of a new governor would involve both the president and the parliament. The president will submit his nomination to the parliament for a “fit and proper test” before the parliament gives its approval.
“The president has not yet proposed the nomination,” Hadi said.
The government urged market participants to remain calm during the transition period. The appointment process would be carried out transparently and accountably and would not disrupt monetary policy or economic stability, it said in a statement.
Damayanti, who was a commissioner at the Indonesia Deposit Insurance Corp. and previously the chief economist at Bank Mandiri before joining BI’s board, said the central bank “will always ensure the continuity of its duties and authorities” to maintain the stability of the rupiah and financial system to achieve an economic environment that is conducive for growth.
Rating agencies Moody’s and Fitch cited concerns regarding changes in Bank Indonesia’s mandate as among key drivers of their credit rating outlook cut to “negative” earlier this year.
However, rival rating agency S&P this month kept its Indonesia rating outlook “stable” and said BI has had a level of operational independence since July 2005 that was roughly in line with regional peers, and it did not expect BI’s changing mandate to drastically affect such independence. All three rated Indonesia’s debt at the second-to-lowest investment grade.
Southeast Asia’s biggest economy is a net oil importer, but the government has insisted on leaving the price of heavily subsidized fuel unchanged despite mounting pressure on the public purse.
Consumer prices rose 3.34% in June, and growing economic strain triggered student protests demanding the government stop excessive spending, including on its billion-dollar free-meals scheme, which has since been cut back.
Critics also hit out at a government decision to raise the non-subsidized fuel price by a third.
Indonesia’s stock market has lost about a third of its value in 2026, and its stock exchange has been rattled by the threat of a downgrade by stock market compiler MSCI.
Global shares were mostly higher Monday and oil prices slipped nearly 7% as the U.S. and Iran paused strikes over the weekend following two weeks of attacks while discussing a possible return to negotiations on an interim cease-fire deal.
The Pentagon did not respond to questions about the pause in attacks on Iranian coastal areas and infrastructure after nearly two weeks of escalating fighting sparked by Iran’s firing at ships trying to transit the Strait of Hormuz.
But markets reacted with relief. U.S. futures surged early Monday and the price of a barrel of Brent crude, the international standard, dropped 6.8% to $85.49.
U.S. benchmark crude dropped 7% to $83.06 per barrel.
“Oil’s sharp retreat at the Monday open did more than knock a few dollars off the barrel. It loosened the geopolitical knot that had been tightening around equities, currencies, bonds and central banks for most of July,” Stephen Innes of SPI Asset Management said in a commentary.
Brent had reached $100 per barrel as the conflict, which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering exports from the world’s top exporter, Saudi Arabia, via the Bab el-Mandeb Strait to Asia.
Fewer than 10 commodity vessels passed through the Strait of Hormuz daily during the weekend, shipping data from Kpler showed.
“Any rebound in flows through the Strait of Hormuz is likely to prove slow and partial, as many shippers remain wary and will want greater confidence in their safety before they bring more empty ships into the Strait,” MST Marquee analyst Saul Kavonic said.
In addition, ship traffic through the Bab el-Mandeb Strait fell on Sunday after Yemeni Houthis attacked Saudi oil installations along the Red Sea coast, although a third Chinese supertanker exited via the Bab el-Mandeb Strait. Societe Generale analysts estimate that each month without a resolution in the Red Sea would add at least $10 a barrel to the oil price.
Some analysts expect markets will remain supported if crude supplies continue to be disrupted by ongoing shipping risks in the Middle East and Russia’s war on Ukraine.
“As the Middle East conflict widened to the Red Sea and Ukrainian drones struck Russian ships and refineries… sustained (supply) disruption would likely keep oil prices elevated and continue to pose upside risks to global inflation,” UOB analysts said in a note.
Ukraine said it hit several Russian oil sites over the weekend.
Chinese chipmaker CXMT soars
Meanwhile, shares in Chinese memory chipmaker CXMT soared 466% on Monday as they began trading on Shanghai’s technology board. The company jumped to become China’s most valuable listed company with an estimated market capitalization of 3.3 trillion yuan (nearly $490 billion).
In early European trading, Germany’s DAX gained 1.6% to 25,497,42 and the CAC 40 in Paris was up 0.8% at 8,436.94. Britain’s FTSE 100 rose 0.5% to 10,784.00.
The futures for the S&P 500 and Dow Jones Industrial Average were up 1%.
In Asian trading, Japan’s benchmark Nikkei 225 rose 0.5% to 64,931.19, while the Kospi in South Korea advanced 1% to 6,755.75.
Hong Kong’s Hang Seng climbed 1% to 25,207.18, while the Shanghai Composite index gained 1.2% to 3,858.25.
In Australia, the S&P/ASX 200 surged 1.4% to 8,894.00.
Taiwan’s Taiex slipped 0.1% and the Sensex in India added 1.1%.
On Friday, the S&P 500 barely budged, picking up less than 0.1% and notching its second straight losing week for the first time since March.
The Dow industrials rose 0.5%. The Nasdaq composite index slipped 0.6%, weighed down by sharp losses for heavyweights like Micron Technology, which fell 7%, and Broadcom, which lost 2.7%.
Recent surges in energy prices and fresh tariffs announced last week by the administration of U.S. President Donald Trump could result in hotter inflation, which has been squeezing consumers and looming over the Federal Reserve’s (Fed) interest rate policy.
The Fed meets this week, though rising inflation has dashed hopes for an interest rate cut anytime soon. Wall Street has been leaning toward a potential rate hike to tamp down higher prices.
Higher energy costs are taking up a bigger share of household budgets, which have shifted toward more basic needs, like gasoline.
In the U.S., a gallon of gasoline costs $4.11, according to AAA. That is still lower than this spring as the conflict in Iran expanded, but almost a dollar higher than last year at this time.
“Oil is the fastest-moving tax in the global economy,” Innes said.
When crude rises sharply, consumers feel it at the fuel pump, airlines and transport companies feel it in their operating costs, manufacturers feel it in their logistics, and central banks begin worrying that the initial supply shock will spill over into broader inflation expectations,” he noted.
Meanwhile, corporate earnings reports are focusing attention on the sustainability of broader profits from a boom in spending on artificial intelligence.
Tech giants like Alphabet and Nvidia have been spending heavily to expand AI capacity and investors increasingly are questioning whether they will generate profits to justify the massive stock values that have pushed markets higher throughout the year.
In other dealings early Monday, the U.S. dollar slipped to 163.56 Japanese yen from 163.64 yen. The euro rose to $1.1399 from $1.1398.
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