Global stock markets advanced on Wednesday, buoyed by hopes of a potential US-Iran agreement that could reopen the Strait of Hormuz, a critical oil shipping lane. US futures pointed higher, while oil prices steadied near $80 a barrel. The optimism helped extend a recent rally on Wall Street, with investors also parsing fresh labor market data and Treasury yields for further clues on economic momentum.
Glencore Plans Australia Listing
Commodities giant Glencore, currently listed in London, announced plans to pursue a secondary listing in Australia, a year after abandoning a proposed move to New York. The decision aims to broaden its shareholder base, improve trading liquidity, and enhance financial flexibility. The move is seen as a strategic step to attract investors from the Asia-Pacific region, a key market for its mining and trading operations.
SpaceX and AMD Slide on AI Spending
In a notable divergence, SpaceX shares tumbled more than 8% after the company reported a sharp increase in capital expenditures, which surged sixfold to $18.4 billion in the second quarter, driven by heavy investments in artificial intelligence infrastructure. Despite CEO Elon Musk reiterating a revenue target of $1 trillion by 2030, investors remain wary of the elevated spending and uncertain near-term profitability. The stock closed below its IPO price of $135, amid concerns as insider lock-up periods expire.
Similarly, Advanced Micro Devices (AMD) saw its shares fall 7.4% to $480.28, erasing $61.1 billion in market value. The company's robust third-quarter revenue guidance of around $13 billion failed to meet sky-high investor expectations in the AI boom. CEO Lisa Su projected that data-center revenue would more than double by 2027, supported by new AI infrastructure deals with Anthropic and Core Scientific. AMD's data-center revenue beat forecasts at $6.72 billion, but the market's appetite for even larger payoffs remains insatiable.
Manipal IPO Surges; BT and BP Show Upside
In India, shares of Manipal Health Enterprises jumped 11% following its nearly $1 billion IPO, the second-largest in the country this year. The strong debut underscores robust demand for healthcare assets in India's rapidly growing market.
In the UK, analysts see significant upside for BT Group, whose shares have fallen 17% since May. With a consensus price target of £2.25, implying an 11% gain, and a discounted cash flow valuation suggesting a 58% undervaluation, the stock could rally strongly by 2027. Key catalysts include Openreach's fiber expansion to 25 million premises, expected capex reductions exceeding £1 billion, and rising free cash flow projected at £3 billion by 2030.
BP shares have retreated from a 16-year high of £6.09 to around £5.35, partly due to optimism over a US-Iran peace deal. Analysts maintain a Buy rating with a 12-month target of £5.96, and a long-term DCF assessment values the shares at £13.49, implying a 61% undervaluation.
India's Nifty 50 Volatile on New Closing Price Method
The Nifty 50 index experienced significant volatility following the introduction of a revised methodology for determining closing prices on stocks tied to derivatives. Traders are concerned about increased market swings stemming from the change, which alters how closing prices are calculated.
Other Notable Movers
SpaceX also reported a 92% jump in quarterly revenue to $7.81 billion, with Starlink and AI infrastructure revenue up 247%. Copper miner Antofagasta saw its shares surge 87% over the past year, supported by strong global copper demand from EV and AI data center build-out. Fresnillo also featured in market movements.
As markets digest these developments, investors remain focused on earnings, AI spending trajectories, and geopolitical events that could shape the global economic outlook.
