Financial Market Preview - Friday 10-Jul

Good morning and welcome to FactSet's Market Preview. Today is Friday, July 10, 2026, and information provided is up to date as of 4 a.m. Eastern Time. U.S. equity futures are softer with the S&P down. Bonds are firmer as the U.S. 10-year yield drops two basis points to 4.5 percent following a slight decline in the previous session. Gilts fall two basis points to 4.9 percent, while the bond softens by one basis point to 3.1 percent. The dollar is weaker. Oil edges down slightly, with WTI crude near $72 per barrel. Gold is lower, while Bitcoin shows gains. European and Asian equity markets are mostly firmer. European markets are finding support after the U.S. refrained from launching a third consecutive day of strikes against Iran. Sentiment earlier this week was shaken by rising tensions, which triggered a sharp rally in oil prices and a rise in interest rates, reigniting concerns about inflation and growth risks. As a result, sell-side strategists are becoming increasingly divided on the outlook for European markets. Some analysts point to vulnerabilities stemming from Europe limited exposure to AI and heightened sensitivity to oil volatility given the region reliance on imported oil In macro updates focus is on memory outperformance in Asia Japan Finance Minister Katayama called on pension funds including GPIF to increase investment in domestic assets. Remarks attributed for yen strength against dollar and gains in JGBs. Japan government also reportedly weighing further tweaks to economic blueprint language to reassure markets about BOJ independence. Elsewhere, European macro calendar sees final inflation updates from Germany and France unchanged from flash. Norwegian inflation softer than forecast. Bank of France upgrades its Q2 GDP growth outlook. ECB President Lagarde dismissed speculation that she could be candidate in French presidential race. BOE chief economist Pill reiterated need for tighter monetary policy. UK MP Burnham has effectively secured the numbers to become Prime Minister next week, with a majority formally nominating him as next leader. In corporate news, EasyJet agrees in $7.65 billion Apollo bid over CastLeak offer. Apollo to obtain non-controlling stake in newly established entity, holding Bayer long reversible contraceptives business for billion in equity capital Arthur J Gallagher announces acquisition of Med James Inc terms undisclosed Earnings today include Detta Airlines posting results before the open Asian equities closed a volatile week on a positive note as confidence returned to the technology sector and crude prices stabilized after overnight declines. Although Brent remains higher on the week, tensions in the Gulf eased as both sides paused their missile exchanges overnight, allowing commodity prices to settle. Sentiment in tech-heavy clusters improved, with several major names in the Kospi and Nikkei making gains, despite SK Hynix slipping ahead of its ADR trading debut later on Friday. For the week, the Hang Seng and Singapore's STI led the gains, while Shanghai's main boards posted modest increases. Meanwhile, the Kospi, Tyx, and Nikkei, 225, all underperformed, and India is also under the water. European equity markets are mostly firmer, following mostly firmer performance on Thursday, though Stocks 600 is on track for negative weekly close. Equity strategists remain divided on the outlook, despite a broad consensus pointing to resilient earnings growth. There's a constructive stance from both Morgan Stanley and UBS Morgan Stanley raised its 2026 EPS growth forecast to 12 and lifted the MSCI Europe target to 2 by mid 2027 citing broadening momentum beyond AI into banks utilities, and capital goods. UBS shares a similar bullish view, raising stocks 600 targets for 2026 and 2027 based on resilient earnings, expanding sector momentum, lighter positioning, and attractive valuations. In contrast, Citi withdrew its tactical long call on European equities, citing renewed Gulf tensions and rising oil prices, highlighting Europe's vulnerability due to limited AI exposure and sensitivity to oil volatility. Bank of America and Goldman Sachs also warn that much positive news is already priced in. J.P. Morgan, Deutsche Bank, and Barenberg see upside as energy shocks ease and domestic demand improves, but some caution that recent gains reflect re-rating rather than earnings growth. The key debate remains whether strong, broadening earnings will offset valuation and sector risks like oil volatility. Thank you for joining us for the U.S. Market Preview for Friday, July 10, 2026. You can continue to follow today's news in real time with FactSet.