{"id":64537,"date":"2026-07-09T23:38:17","date_gmt":"2026-07-10T03:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-gulf-tensions-drive-gold-lower-as-pepsico-warns-of-inflationary-squeeze\/64537\/"},"modified":"2026-07-09T23:38:17","modified_gmt":"2026-07-10T03:38:17","slug":"global-markets-update-gulf-tensions-drive-gold-lower-as-pepsico-warns-of-inflationary-squeeze","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-gulf-tensions-drive-gold-lower-as-pepsico-warns-of-inflationary-squeeze\/64537\/","title":{"rendered":"Global Markets Update: Gulf Tensions Drive Gold Lower as PepsiCo Warns of Inflationary Squeeze"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> are on track for a weekly loss of over 1%<\/strong> as military escalations in the Gulf region between the <strong>U.S.<\/strong> and <strong>Iran<\/strong> fuel expectations of a <strong>Federal Reserve<\/strong> rate hike in September.<\/li>\n<li><strong>PepsiCo (<a href=\"\/stock\/PEP\">PEP<\/a>)<\/strong> shares fell <strong>3.3%<\/strong> after the company warned that <strong>rising fuel prices<\/strong> and &quot;tightening consumer budgets&quot; are stalling the recovery of food and beverage sales in the <strong>U.S.<\/strong><\/li>\n<li><strong>Tencent (<a href=\"\/stock\/TCEHY\">TCEHY<\/a>)<\/strong> is reportedly leading a deal to buy back AI startup <strong>Manus<\/strong> after Chinese regulators forced <strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> to unwind its <strong>$2 billion<\/strong> acquisition of the firm.<\/li>\n<li>The <strong>Japanese government<\/strong> is revising its economic blueprint to explicitly mention the <strong>Bank of Japan\u2019s (BOJ)<\/strong> autonomy, attempting to calm bond markets after yields hit <strong>30-year highs<\/strong>.<\/li>\n<li><strong>Hong Kong Exchanges and Clearing (<a href=\"\/stock\/0388.HK\">0388.HK<\/a>)<\/strong> is seeing an influx of international listing applications from <strong>Canada<\/strong>, <strong>Indonesia<\/strong>, and <strong>Kazakhstan<\/strong> as it seeks to diversify its issuer base.<\/li>\n<\/ul>\n<h2>Commodities and Geopolitics<\/h2>\n<p><strong>Gold (<a href=\"\/stock\/GC=F\">GC=F<\/a>)<\/strong> faced downward pressure on Friday, with spot prices holding near <strong>$4,122 per ounce<\/strong> as investors weighed the impact of renewed hostilities in the Middle East. Following <strong>U.S.<\/strong> strikes on <strong>Iran<\/strong>, Iranian forces launched retaliatory attacks on military infrastructure in Gulf states, effectively ending a three-week ceasefire.<\/p>\n<p><em>Market participants have responded by raising the probability of a September interest rate hike to 64%, up from 54% just a week ago.<\/em> The prospect of higher rates for longer has dampened the appeal of non-yielding bullion, while <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a><\/strong>, <strong>Platinum<\/strong>, and <strong>Palladium<\/strong> are also on course for weekly declines.<\/p>\n<h2>Corporate Earnings and Inflation<\/h2>\n<p><strong>PepsiCo (<a href=\"\/stock\/PEP\">PEP<\/a>)<\/strong> CEO <strong>Ramon Laguarta<\/strong> issued a cautious outlook for the second half of 2026, noting that <strong>inflationary pressures<\/strong> are making <strong>U.S.<\/strong> consumers more selective. While the company&#39;s international divisions saw revenue growth of at least <strong>10%<\/strong>, organic revenue in the North American snacks business fell <strong>2%<\/strong> as price cuts failed to stimulate volume.<\/p>\n<p>The company highlighted that the near-term outlook for the <strong>U.S.<\/strong> market is heavily dependent on <strong>gas prices<\/strong>, which have surged toward <strong>$80 a barrel<\/strong> due to the ongoing conflict. To mitigate these costs, <strong>PepsiCo<\/strong> is pivoting toward &quot;healthier&quot; offerings, including zero-sugar drinks and protein-rich snacks, which continue to show momentum.<\/p>\n<h2>Technology and Regulatory Shifts<\/h2>\n<p>In a significant move for the AI sector, <strong>Tencent (<a href=\"\/stock\/TCEHY\">TCEHY<\/a>)<\/strong> is in talks to become the largest shareholder in <strong>Manus<\/strong>, an AI agent startup. This follows a rare intervention by Beijing\u2019s <strong>National Development and Reform Commission (NDRC)<\/strong>, which ordered <strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> to divest the company citing violations of investment rules.<\/p>\n<p>Meanwhile, <strong>Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>)<\/strong> has issued an internal memo restricting employees from using prediction markets like <strong>Kalshi<\/strong> and <strong>Polymarket<\/strong> for wagers on elections or macroeconomic data. The bank warned that repeated violations of this policy, intended to prevent insider trading risks, could result in <strong>termination<\/strong>.<\/p>\n<h2>International Trade and Finance<\/h2>\n<p>The <strong>European Union<\/strong> has launched an anti-dumping investigation into imports of <strong>Chinese Pekin ducks<\/strong>, following complaints from five <strong>EU<\/strong> producers. The probe alleges that Chinese exporters benefit from state subsidies and cheap feed, causing &quot;substantial adverse effects&quot; on the <strong>European<\/strong> poultry industry&#39;s market share and pricing.<\/p>\n<p>In <strong>Asia<\/strong>, the <strong>Malaysian ringgit<\/strong> appreciated to <strong>4.0720<\/strong> against the <strong>U.S. dollar<\/strong>, supported by strong electrical and electronics exports. Concurrently, <strong>Hong Kong\u2019s<\/strong> exchange is processing listing applications from diverse entities, including <strong>Kazakhstan\u2019s<\/strong> national railway operator and <strong>Canada\u2019s<\/strong> <strong>Silvercorp Metals<\/strong>, as it strengthens its role as a global fundraising hub.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Gold prices are on track for a weekly loss of over 1% as military escalations in the Gulf 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