Morning in the markets: Tokyo Stock Exchange jumps by about 2%, oil prices rise

Trading review: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities, and analyst recommendations. 6:55. The trading week around the world opens in the shadow of geopolitical uncertainty, mainly around the Strait of Hormuz, which, according to reports, is still not open for free movement. Yesterday, Iran again denied the existence of direct talks with the USA, and President Donald Trump for his part said in an interview with Axios that Washington is "lowering its profile" regarding contacts with Iran. "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact that they have no money at all. It will work out. It always works out. It's like a chess game," said Donald Trump.

Asia

Asian stock exchanges are trading this morning with rising share prices. The Tokyo Stock Exchange is up by about 2%, the Hong Kong Stock Exchange is climbing by 0.6%, the Shanghai Stock Exchange is advancing by 0.2%, and the Seoul Stock Exchange is advancing by 0.7%. In the memory stock sector, Samsung shares are trading this morning in South Korea unchanged, while SK Hynix is rising by a slight rate of about 1%.

Commodity and currency markets

After falling by over 7% last week, against the backdrop of traders' hopes for a deal that would lead to the opening of the Strait of Hormuz, oil prices are recording slight increases of up to 1% this morning. Brent crude is trading around 84 dollars a barrel, while American oil (WTI) is trading around 78 dollars a barrel. The price of gold is falling this morning by about 0.3% and is trading around 4,385 dollars an ounce. It continues to trade at a two-month high, against the backdrop of a decline in interest rate expectations in the USA and the trend of the dollar's weakening globally. As an asset that does not bear interest, gold tends to weaken in environments of high interest rates, while a weak dollar also makes the metal more attractive to foreign buyers.

Wall Street

Trading in futures on Wall Street is taking place this morning with only slight changes. Futures on the Dow Jones are falling by about 0.1%, futures on the S&P 500 are trading stably, and futures on the Nasdaq are advancing by 0.2%. Wall Street will return to trading today after a green week, in which it received a tailwind from developments in the geopolitical arena, while the positive trend was also amplified by the weaker-than-expected employment report in the USA, which dramatically lowered expectations for an imminent interest rate hike. The S&P 500 jumped by about 3.6% to a new all-time high, crossing the 7,700-point threshold for the first time; the Nasdaq rose by 5.2% and is within touching distance of its last peak; as did the Dow Jones, which strengthened by 3%. Chip stocks left bear market territory last week (a 20% drop from the peak), but are still in correction territory (a 10% drop from the peak). The SOXX ETF, which tracks the broad chip sector, concluded the past week with a rise of about 7.6%, and thus left bear market territory. Nvidia, Intel, Marvell, and Arm finished the week with gains of over 10%. The IGV ETF, which tracks the software sector, continued its positive momentum and rose by about 8.6%.

Tel Aviv

Dual-listed stocks will return from Wall Street with a positive arbitrage gap of about 0.45%. Tower is expected to climb by about 5%, while its peers Camtek and Nova are expected to weaken by up to 2%. Nice is expected to rise by over 4%, and Teva and Elbit Systems will strengthen by up to 1.5%. In the earnings season sector, prominent reports are expected to be published today from the dual-listed chip company Camtek, the software company Nayax, and the drone camera manufacturer Next Vision. The Tel Aviv Stock Exchange concluded the past trading week with a mixed trend. On a weekly basis, the TA-35 index rose by about 0.5%, the TA-90 index lost about 2.2% of its value, and the TA-125 index weakened by 0.2%. El Al soared by about 20% after reporting that its net profit in the second quarter doubled compared to the same period last year. Palo Alto shares, which officially entered the leading indices on the stock exchange last Thursday evening, jumped by 9% last week.

Palantir

Palantir shares recorded their best week since 2024 with a weekly jump of about 40%, following strong financial results for the second quarter that included a 149% growth in commercial operations in the USA and the closing of contracts worth over 2 billion dollars. The jump dispelled investors' concerns and shifted the narrative around the company from "AI loser" to "AI winner". Following the reports, analyst Brad Zelnick from Deutsche Bank upgraded his recommendation for the stock from "hold" to "buy", noting Palantir's unique ability to provide artificial intelligence applications with tangible value.