{"id":65583,"date":"2026-07-29T01:08:11","date_gmt":"2026-07-29T05:08:11","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-middle-east-tensions-as-major-banks-beat-earnings\/65583\/"},"modified":"2026-07-29T01:08:11","modified_gmt":"2026-07-29T05:08:11","slug":"global-markets-shaken-by-middle-east-tensions-as-major-banks-beat-earnings","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-middle-east-tensions-as-major-banks-beat-earnings\/65583\/","title":{"rendered":"Global Markets Shaken by Middle East Tensions as Major Banks Beat Earnings"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>UBS (<a href=\"\/stock\/UBS\">UBS<\/a>) and Standard Chartered (<a href=\"\/stock\/STAN\">STAN<\/a>) both exceeded Q2 earnings expectations<\/strong>, reporting net profits of <strong>$2.8 billion<\/strong> and <strong>$2.33 billion<\/strong> respectively, driven by strong wealth management performance.<\/li>\n<li><strong>Geopolitical instability spiked<\/strong> as the Jordanian military intercepted <strong>five Iranian-launched missiles<\/strong> targeting a U.S. military base, breaking a brief pause in regional hostilities.<\/li>\n<li><strong>Japanese equities tumbled<\/strong>, with the Nikkei 225 average falling <strong>3%<\/strong> to roughly <strong>60,650 points<\/strong>, fueled by a massive sell-off in semiconductor stocks and fears of a &quot;yen carry trade&quot; unwind.<\/li>\n<li><strong>BASF (<a href=\"\/stock\/BAS\">BAS<\/a>) posted a massive 54% year-over-year jump in adjusted EBITDA<\/strong> to <strong>\u20ac2.45 billion<\/strong>, announcing a new <strong>\u20ac1.0 billion share buyback<\/strong> program to begin in August 2026.<\/li>\n<\/ul>\n<h2>Banking Giants Reward Shareholders Amid Volatility<\/h2>\n<p>European banking leaders UBS (<a href=\"\/stock\/UBS\">UBS<\/a>) and Standard Chartered (<a href=\"\/stock\/STAN\">STAN<\/a>) delivered robust second-quarter results on Wednesday, signaling resilience in their core wealth management and investment banking divisions. UBS (<a href=\"\/stock\/UBS\">UBS<\/a>) reported a net profit of <strong>$2.8 billion<\/strong>, significantly beating the analyst consensus of <strong>$2.39 billion<\/strong>. The Swiss lender announced it will repurchase at least <strong>$1 billion<\/strong> in shares over the next three months as it nears the final stages of its Credit Suisse integration, targeting a full merger completion by year-end.<\/p>\n<p>Standard Chartered (<a href=\"\/stock\/STAN\">STAN<\/a>) followed suit with a pretax profit of <strong>$2.33 billion<\/strong>, outperforming the <strong>$2.08 billion<\/strong> estimated by markets. Despite booking a <strong>$446 million impairment<\/strong> related to geopolitical risks in the Middle East, the bank launched an immediate <strong>$1.0 billion share buyback<\/strong>. CEO Bill Winters highlighted record first-half performance in wealth solutions, which helped offset the impact of regional conflicts on the bank&#39;s credit charges.<\/p>\n<h2>Geopolitical Escalation and Market Contagion<\/h2>\n<p>Market sentiment was dampened by a sharp escalation in Middle East tensions. The Jordanian military confirmed the downing of <strong>five Iranian missiles<\/strong> on Wednesday, an event that analysts say has broken a fragile four-day pause in direct military exchanges. The strike targeted a U.S. military facility in Jordan, raising concerns over a broader regional conflict that could disrupt energy corridors and global logistics.<\/p>\n<p>In Asia, the Nikkei 225 extended its recent losses, plunging <strong>3%<\/strong> to close at its weakest level in two months. The decline was spearheaded by a <strong>10% drop<\/strong> in heavyweights like Tokyo Electron and Advantest, as investors fled the semiconductor sector following a global tech sell-off. <em>The broader TOPIX index also fell 2.8%<\/em>, reflecting widespread anxiety ahead of upcoming policy decisions from the Federal Reserve and the Bank of Japan.<\/p>\n<h2>Industrial Strength: BASF Beats and Buys Back<\/h2>\n<p>Chemical giant BASF (<a href=\"\/stock\/BAS\">BAS<\/a>) provided a bright spot for European industrials, reporting adjusted EBIT of <strong>\u20ac1.48 billion<\/strong>, more than doubling the <strong>\u20ac686 million<\/strong> recorded in the same period last year. The company maintained its full-year adjusted EBITDA guidance of <strong>\u20ac6.3 billion to \u20ac7.7 billion<\/strong>, despite ongoing currency headwinds.<\/p>\n<p>Alongside its earnings beat, BASF (<a href=\"\/stock\/BAS\">BAS<\/a>) unveiled a major capital allocation update, targeting at least <strong>\u20ac12 billion<\/strong> in shareholder distributions through 2028. This includes a new <strong>\u20ac1.0 billion buyback<\/strong> starting in August, forming part of a larger <strong>\u20ac4 billion<\/strong> repurchase plan. The company is also prioritizing debt reduction, aiming to repay <strong>\u20ac1.6 billion<\/strong> in bonds ahead of schedule to maintain its single A credit rating.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways UBS (UBS) and Standard Chartered (STAN) both exceeded Q2 earnings expectations, reporting net profits of $2.8 billion and 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