Sentiment deteriorated more sharply among lower-income households (-11.5%) than among higher-income households (-1.5%), although the latter reported a 3.5% improvement in confidence regarding purchases of durable goods and real estate. Regionally, Greater Buenos Aires (-6.35%) and the City of Buenos Aires (-6.24%) registered the steepest declines, while the rest of the country recorded the highest confidence level at 45.55.

Expectations regarding future conditions also weakened, falling 7.2% to 47.14, leaving them 11.4% below last year's projections.

This decline in the weekly injection suggests a shift in the balance between supply and demand, with less gas available or needed for storage compared with the prior period. Market participants typically monitor such changes closely, as they can signal evolving consumption patterns, production trends, or weather-driven demand.

While the data only reflects a single weekly move, the drop from 41B to 32B in storage additions could be an early indication of tighter conditions ahead, depending on how injections develop over the remainder of the storage season.

Financials retreated, with Royal Bank of Canada and TD Bank each declining close to 2%, while Bank of Montreal and Scotiabank dropped more than 1%. Weaker gold prices pressured miners: Agnico Eagle slid about 2%, and Barrick Gold and Wheaton Precious Metals each fell more than 1.5%.

Technology shares also came under pressure after recent Big Tech earnings reignited concerns about heavy capital expenditures tied to artificial intelligence. Shopify lost more than 2%, and Constellation Software declined over 2.5%.

On the upside, several companies topped profit expectations, including Waste Connections (+1.4%), Mullen Group (+4.5%), and Teck Resources (+5%). Cenovus Energy (+2.6%) and Ovintiv (+3%) are scheduled to report later today. Elsewhere, Panama is weighing a potential partnership with First Quantum Minerals (-0.6%) to reopen the Cobre Panama mine.

The improvement suggests households are feeling slightly less pessimistic about the economic outlook and their personal financial situations than in the previous month. However, with the reading still well below zero, July’s figure indicates that caution and concern continue to dominate consumer expectations across the currency bloc.

The modest uptick in confidence will be closely watched by policymakers and markets alike, as consumer sentiment is a key driver of household spending and overall economic momentum in the Euro Zone.

The spike in oil prices revived inflation worries and reinforced expectations that interest rates may stay higher for longer. Financials underperformed, with Itaú, Bradesco, and Itaúsa all retreating around 1%. Utilities also declined, as Axia slipped 1% and Sabesp lost more than 1.5%.

WEG edged down about 0.5% after surging 10% in the previous session on the back of robust operating margins and strong returns on invested capital. Other notable decliners included Ambev (-0.7%), Rede D’Or (-3%), and Embraer (-1%). Bucking the broader trend, Petrobras advanced 1.5%, supported by the rally in crude prices.

The SARB pointed to a modest improvement in the inflation outlook and softer economic growth, while reiterating its commitment to returning inflation to its 3% target over time. Governor Lesetja Kganyago cautioned that renewed conflict in the Middle East—already driving up oil and fertilizer prices—could necessitate further monetary tightening if higher fuel costs spill over into food prices and core inflation.

South Africa’s annual headline inflation accelerated to 5.0% in June, the highest level in two years, while core inflation rose to 4.1%, its strongest reading since September 2024. Both remain above the upper bound of the SARB’s 3% ±1 percentage point target range.

Alphabet slid 6% after reporting its Q2 results overnight. The Google parent company lifted its full-year capital expenditure forecast to $205 billion, roughly double last year’s level, rekindling concerns about the sustainability of its heavy investment in AI infrastructure. Tesla sank 10% after posting weaker profits despite solid overall performance in the broader electric vehicle sector. Meta and Amazon also retreated, each losing more than 3%.

Rising fuel prices and heightened tensions between Iran and the US pushed Treasury yields higher, prompting markets to price in the likelihood of an interest rate hike before the end of the quarter. The move was reinforced by initial jobless claims, which fell to their lowest levels in six decades.

Financials remained under pressure, with capital markets firms particularly weak. Among other notable earnings, Comcast and RTX both traded higher after beating analysts’ estimates.

The Monetary Policy Committee voted 4–2 to hold rates, pointing to a slightly improved inflation outlook and softer growth prospects. The Bank reiterated its commitment to guiding inflation toward its 3% target over time.

Governor Lesetja Kganyago cautioned that renewed conflict in the Middle East—already pushing up oil and fertilizer prices—could still prompt further tightening if higher fuel costs feed through into food prices and core inflation.

Annual inflation in South Africa quickened to 5% in June. However, the central bank now projects inflation to average 4% in 2026, an improvement from its previous forecast of 4.4%. The SARB also upgraded its 2026 growth forecast to 1.4% from 1.2%, while warning that economic momentum may lose steam in the coming quarters.

Hostilities in the Middle East continue to intensify, with no signs of an imminent resolution. In response, oil prices have soared to nearly 31% above their pre-conflict levels from earlier this month. While overall inflationary pressures have so far remained relatively contained, the latest spike in energy costs has rekindled concerns that higher oil prices could feed through to broader inflation, potentially prompting the Fed to maintain a tighter policy stance for longer.

The greenback strengthened against the euro after the ECB left interest rates unchanged, in line with expectations, and also posted gains versus both the yen and the pound.

The central bank noted that leading indicators already point to a rise in underlying inflation this month, driven by a renewed surge in energy prices following the escalation of the war in the Middle East. At the same time, the bank warned that domestic demand appears to be slowing in response to these developments.

To preserve the measured pace of depreciation, the TCMB has continued to sell lira in the open market. Additional support for the currency has come from policymakers’ signals that a near-term return to one-week repo auctions is unlikely. These auctions have been suspended since March, effectively forcing financial institutions to rely on the costlier overnight funding rate.

The decision to keep the prime rate steady suggests policymakers are maintaining a wait-and-see approach, with borrowing costs for households and businesses holding at the same level for a further period. Stability at 10.50% may reflect an effort to balance inflation-control objectives with concerns over growth and credit demand in the domestic economy.

By holding the benchmark rate at 7.00%, the SARB suggests it is closely monitoring evolving domestic and global economic conditions before making any shifts in monetary policy. The unchanged rate affects the cost of credit across the economy, from consumer loans to corporate borrowing, and will be watched closely by markets for clues on the timing and direction of future moves.

The latest data, updated on 23 July 2026, confirms that the July decision extends the period of steady policy after the previous meeting in May, reinforcing a wait-and-see approach amid ongoing uncertainty in the macroeconomic environment.

The tertiary sector grew 1.7%, with notable contributions from wholesale trade (up 8.8%), government activities (4.9%), healthcare and social services (2.9%), and financial services and insurance (2.6%).

In contrast, the secondary sector contracted by 0.7%, as declines in manufacturing (-1.5%), utilities (-0.9%), and construction (-0.3%) more than offset a 3.9% increase in mining.

On a monthly basis, overall economic activity slipped 0.3% in May, following a 1.4% gain in April.

In May, retail turnover advanced 1.0% to C$73.7 billion, matching earlier estimates. Sales increased across all nine subsectors, led by gasoline stations and fuel vendors, where sales climbed 3.1%.

Sales at motor vehicle and parts dealers were up 0.7% in May, marking a second straight monthly gain. All four store types within this subsector reported higher sales, with new car dealers leading the advance with a 0.5% increase.

Core retail sales—excluding certain volatile components—rose 0.9% in May after a 0.7% decline in April. The gain was driven primarily by a 1.0% increase at general merchandise retailers, their first monthly rise in three months.

Retail sales increased in nine provinces in May, with British Columbia posting a notable 2.1% gain.

On the corporate front, STMicroelectronics slumped more than 16% after missing profit expectations, making it the worst performer in the STOXX 600. Nestlé fell 7% after announcing an agreement to sell its stake in its Waters business to private equity firm Platinum Equity. UniCredit lost 4.4%, despite posting a 6.6% year-on-year increase in revenue and reiterating its target of acquiring Commerzbank in the fourth quarter. BNP Paribas slipped 2.1%, even though both profit and revenue topped forecasts.

In contrast, TotalEnergies advanced 2.9% after reporting its strongest quarterly profit in three years, while Dassault Aviation jumped 8.3% on the back of robust first-half earnings.