US stocks were firmly higher on Wednesday after strong results from AI companies and a relatively tame CPI print. The S&P 500 rose 0.3% to test its record, the Nasdaq 100 rose nearly 1%, and the Dow edged higher. CoreWeave surged 20% after posting stronger than expected sales results. Similarly, SMCI advanced nearly 15% after its revenue forecast was higher than expected by analysts. Hyperscalers and chip producers also gained from strong results from Tencent, while Temasek took fresh stakes on SK Hynix and Samsung. The results injected fresh optimism on AI infrastructure stocks amid their volatile start to the third quarter. Nvidia, Oracle, and Amazon were up. Meanwhile, new inflation data showed relatively stable core inflation to ease pressure on the FOMC to raise interest rates. Still, uncertainty on the return of energy supply from the Middle East maintained inflationary concerns.

The average 30-year fixed mortgage rate for loans of up to $806,500 in the US edged down 4bps to 6.77% in the week ended August 7, 2026, from 6.81% in the previous week, which marked the highest level in a year, according to the Mortgage Bankers Association. The decline tracked lower Treasury yields after a weaker-than-expected jobs report reduced expectations for an imminent Fed rate hike. Mortgage applications increased 3.6%, marking the first rise in three weeks, with applications to purchase a home up 2.5% and those to refinance a home loan rising 5%.

The headline inflation rate in India rose to 4.45% in July of 2026 from 4.38% in the previous month, the highest since December of 2024, and aligned with market expectations of 4.5%. The increase reflected fresh inflationary pressures from the surge in energy prices since the outbreak of war in the Middle East, magnified by the consequent pressure on the rupee. Still, the rate remained comfortably within the RBI's tolerance range of 2 percentage points away from 4%. Inflation was elevated for food and beverages (5.52%) and transportation (4.43%), both impacted by the war and adverse weather conditions for key crops. In turn, inflation was more muted for housing and utilities (2.16%) and recreation, sport, and culture (1.6%). From the previous month, the Indian CPI rose by 0.88%.

Crude oil remained volatile on Wednesday, fluctuating around $83 per barrel, as investors weighed conflicting signals surrounding a potential agreement between the US and Iran. President Donald Trump said the US had “total control over the Strait of Hormuz” as negotiations over the key waterway remain deadlocked. The increasingly confrontational rhetoric raised further doubts about the prospects of an immediate agreement to reopen the critical shipping route. Meanwhile, Pakistan’s defense minister said Washington and Tehran are “close to some sort of arrangement” regarding the Strait of Hormuz, while reports indicated that talks between Iran and Oman have reached an advanced stage. Elsewhere, EIA data showed US crude inventories increased by 17.4 million barrels last week, marking their biggest weekly rise since early 2023.

Wheat prices surged more than 3% to above $6.50 per bushel on Wednesday, moving closer to the two-year high of $7.08 reached on July 22, as concerns over Black Sea supply disruptions intensified. Prices jumped after reports that major Ukrainian drone attacks had halted operations at a grain terminal in Novorossiysk, Russia’s leading Black Sea wheat export port. The attacks have raised fresh concerns over shipments during the peak export season for both Russia and Ukraine, with the two countries increasingly targeting each other’s vessels and logistics infrastructure. Russia’s wheat exports are expected to fall to their lowest level in nearly a decade in August, while consultancy IKAR has cut its 2026/27 export forecast by 500,000 tonnes to 44.5 million tonnes. Ukraine has also lowered its grain export outlook by up to 12%. However, weak international demand, lower Russian prices and alternative export routes could limit the impact on global supplies.

China's total vehicle sales fell 0.3% from a year earlier to 2.584 million units in July 2026, following a 3.2% decline in the previous month, according to data from the China Association of Automobile Manufacturers (CAAM). New energy vehicle (NEV) sales soared 23.7% year-on-year to 1.561 million units in July, following 23.6% growth in June, with NEVs accounting for 60.4% of total vehicle sales, breaking the 60% mark for the first time. For the first seven months of the year, vehicle sales dropped 3.7% year-on-year, compared with a 12.0% increase in the same period last year, while NEV sales climbed 9.6% to 9.007 million units. During the period, NEV sales surpassed 50% of total new vehicle sales for the first time. Meanwhile, on a monthly basis, car sales fell 8%. Last year, China's vehicle sales grew 9.4% year-on-year to a record high of 34.4 million units, accelerating from a 4.5% rise in 2024, while NEV sales surged 28.2%.