WS #11574

Multiple sources report a new attack on commercial shipping in the Strait of Hormuz, with Iran firing missiles at two vessels and setting an LNG tanker ablaze. This revives geopolitical risk premium in oil markets that had been fading. Separately, Fed Governor Waller signaled inflation has replaced employment as the primary risk, shifting focus to the July CPI print and raising the probability of a rate hike. PBOC Governor Pan expanded the Southbound Bond Connect quota to 800 billion yuan and pledged increased forex reserve allocation to Hong Kong, supporting Hong Kong markets. China test-fired a submarine-launched ballistic missile into the South Pacific, drawing condemnation from Australia, Japan, and New Zealand, adding to regional tensions. Samsung reported record Q2 operating profit of 89.4 trillion won, driven by AI chip demand, but memory stocks sold off. Tesla delivered record 480,126 vehicles in Q2, beating estimates. Rivian announced a 75 million share offering, sending shares down 8.9% after hours. Microsoft is cutting 4,800 jobs, including major Xbox cuts. The yen weakened past 162 per dollar, with hedge funds turning most bearish since 2007. Oil prices edged up slightly but remain near pre-Iran war levels as OPEC+ plans further output increases and Saudi Arabia cut prices sharply.