Key Takeaways
- Escalating Border Conflict: Cambodia's BM-21 rocket attacks on Thai provinces of Surin and Ubon Ratchathani have resulted in at least 12 deaths, including civilians and a soldier, and dozens injured, prompting retaliatory F-16 strikes by the Thai Air Force and the evacuation of over 100,000 civilians.
- Mixed UK Retail Sales: UK retail sales volumes rebounded in June, rising 0.9% month-on-month after a significant drop in May, driven by warm weather boosting supermarket and fuel sales, though the figures slightly underperformed expectations.
- Sweden's Economic Indicators: Sweden reported a slight decrease in its June unemployment rate to 9.4% (seasonally adjusted 8.3%) and a continued decline in Producer Price Index (PPI) year-on-year to -3.1%.
- TSMC Plant Delay: Taiwan Semiconductor Manufacturing Co. (TSM) has announced a 1.5-year delay in the start of operations for its Kumamoto No.2 plant in Japan, now projected for the first half of 2029, reportedly due to traffic issues.
- European Market Opening: European equity futures opened slightly lower following a series of earnings reports and ahead of key Ifo data.
Cambodia launched BM-21 rocket attacks into Thailand's Surin and Ubon Ratchathani provinces, leading to a significant escalation in border tensions. The attacks resulted in at least 12 fatalities, including civilians and a soldier, with dozens more injured. In response, the Thai Air Force deployed F-16 fighter jets to conduct strikes on Cambodian military targets. Thai authorities reported that over 100,000 civilians have been evacuated from the affected border areas. Clashes were reported in at least six locations along the border, with the Thai military accusing Cambodian forces of targeting civilian areas, including a hospital and a gas station.
In economic news, the United Kingdom saw a rebound in retail sales volumes for June. Sales increased by 0.9% month-on-month, a significant recovery from the 2.7% decline in May. On a year-on-year basis, retail sales were up 1.7%, contrasting with a -1.3% figure previously. Core retail sales, excluding auto fuel, also rose 0.6% month-on-month and 1.8% year-on-year. The Office for National Statistics noted that warm weather in June played a crucial role in boosting sales, particularly for supermarkets and fuel purchases.
Meanwhile, Sweden released its latest economic indicators for June. The unemployment rate saw a slight improvement, falling to 9.4% from 9.7% in May. The seasonally adjusted unemployment rate also decreased to 8.3% from 9.0%. However, the Producer Price Index (PPI) continued its downward trend, with the year-on-year figure at -3.1% (down from -2.8%) and the month-on-month figure at -0.6% (down from -0.5%).
In the technology sector, Taiwan Semiconductor Manufacturing Co. (TSM) announced a delay in the operational start of its Kumamoto No.2 plant in Japan. The facility, which was originally slated to begin operations earlier, is now expected to launch in the first half of 2029, a delay of approximately 1.5 years. The postponement is reportedly due to traffic congestion issues in the area, which have impacted construction.
Finally, European equity futures opened slightly lower today, as markets digest a series of recent earnings reports and anticipate the release of the Ifo Business Climate Index.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.