Overview:
Technology giants reported mixed quarterly results as Alphabet surpassed revenue expectations with 82 percent cloud business growth, though Tesla missed profit forecasts despite topping revenue targets. Meanwhile, regional and global markets shifted on geopolitical concerns, with oil prices reaching six-week highs and precious metals gaining support amid escalating US-Iran tensions and Middle East conflict developments.
Details:
Alphabet's second-quarter revenue touched nearly USD 120 billion, exceeding market expectations, driven by robust cloud infrastructure demand expanding at 82 percent year-over-year. The company's stock declined despite the strong results. Tesla reported second-quarter revenues surpassing USD 28 billion but failed to meet profit expectations, reflecting ongoing margin pressures in the electric vehicle sector.
In the Gulf region, banking sector performance strengthened notably. Emirates NBD posted half-year net profit of AED 12.9 billion, a 3 percent increase, with loans rising 35 percent to AED 771 billion and customer deposits climbing 21 percent to AED 892 billion. First Abu Dhabi Bank achieved AED 10.73 billion in first-half earnings with customer deposits reaching AED 853 billion, growing 1 percent. Dubai Islamic Bank reported AED 1.7 billion profit, while UAE Islamic Bank achieved AED 1.7 billion in first-half earnings. Etisalat (Du) reported AED 1.63 billion net profit for the first half, up 12.6 percent, with a dividend distribution of AED 0.26 per share. Dubai Commercial Bank achieved AED 1.716 billion in half-year profit, increasing 1.2 percent.
Gold held near two-week highs at USD 4,132 per ounce on Thursday, supported by Middle East geopolitical stress. Oil prices surged more than 1.5 percent to six-week peaks following renewed US military operations in the region. The dollar maintained stability amid elevated US-Iran tensions, while the Japanese yen remained pressured near 163 levels. Analysts warn that escalating regional conflict could suppress global growth to 1.3 percent. European and American refineries are preparing maximum-capacity operations in the third quarter amid supply uncertainty.
Outlook:
Investors are monitoring the trajectory of US-Iran tensions and their impact on energy markets and global growth forecasts. Attention also focuses on upcoming central bank decisions in Asia, particularly Japan, and whether renewed geopolitical volatility will sustain safe-haven demand for gold and the dollar.