{"id":66388,"date":"2026-08-12T06:38:15","date_gmt":"2026-08-12T10:38:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-pboc-stimulus-and-middle-east-tensions-coreweave-surges-18\/66388\/"},"modified":"2026-08-12T06:38:15","modified_gmt":"2026-08-12T10:38:15","slug":"global-markets-react-to-pboc-stimulus-and-middle-east-tensions-coreweave-surges-18","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-pboc-stimulus-and-middle-east-tensions-coreweave-surges-18\/66388\/","title":{"rendered":"Global Markets React to PBOC Stimulus and Middle East Tensions; CoreWeave Surges 18%"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>) shares surged 18%<\/strong> in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> trading after reporting a <strong>$2.58 billion revenue quarter<\/strong> and raising its full-year 2026 outlook, citing a <strong>$104 billion sales backlog<\/strong>.<\/li>\n<li><strong>The People&#39;s Bank of China (PBOC)<\/strong> pledged to maintain a <strong>moderately loose monetary policy<\/strong> and strengthen counter-cyclical adjustments to support a slowing economy following a <strong>4.3% Q2 GDP growth<\/strong> print.<\/li>\n<li><strong>UK Treasury models<\/strong> warn of a worst-case scenario where <strong>GDP growth slows to 0.3% in 2027<\/strong> if the Strait of Hormuz remains closed, with inflation potentially spiking to <strong>6.4%<\/strong>.<\/li>\n<li><strong>Former Chinese Premier Zhu Rongji<\/strong>, the architect of China&#39;s economic reforms and its entry into the WTO, has <strong>died at the age of 98<\/strong>.<\/li>\n<li><strong>Geopolitical tensions escalate<\/strong> as the US, UK, and EU sanctioned hundreds of tankers linked to Russia\u2019s &quot;shadow fleet,&quot; while UK defense officials face pressure to reopen direct military lines with Moscow to avoid unintended escalation.<\/li>\n<\/ul>\n<h2>PBOC Signals Continued Easing Amid Growth Concerns<\/h2>\n<p>The <strong>People&#39;s Bank of China (PBOC)<\/strong> announced it will continue to implement a <strong>moderately loose monetary policy<\/strong> through the second half of 2026. This decision follows a second-quarter growth rate of <strong>4.3%<\/strong>, which fell short of the government&#39;s <strong>4.5% to 5.0% target<\/strong>. The central bank intends to use <strong>counter-cyclical adjustments<\/strong> to expand domestic demand and keep market liquidity ample.<\/p>\n<p>Governor <strong>Pan Gongsheng<\/strong> emphasized that the bank will guide financial institutions to smooth the pace of credit issuance. The PBOC also plans to support the <strong>Panda bond market<\/strong> and maintain the <strong>Yuan<\/strong> at a stable, balanced level. <em>Analysts suggest these measures reflect Beijing&#39;s urgency in stabilizing the world&#39;s second-largest economy amid weakening momentum.<\/em><\/p>\n<h2>CoreWeave Leads AI Infrastructure Rally<\/h2>\n<p>CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>) saw its stock price jump <strong>18%<\/strong> <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">premarket<\/a> after a &quot;cleaner quarter&quot; that beat analyst expectations on both top and bottom lines. The company reported <strong>Q2 revenue of $2.58 billion<\/strong>, surpassing the <strong>$2.56 billion<\/strong> consensus. More notably, its revenue backlog expanded <strong>246% year-over-year<\/strong> to reach <strong>$104 billion<\/strong>, signaling massive sustained demand for AI computing power.<\/p>\n<p>The company raised its full-year 2026 revenue guidance to a range of <strong>$12.4 billion to $13.2 billion<\/strong>. Following the report, <strong>JPMorgan<\/strong> raised its price target for CoreWeave (<a href=\"\/stock\/CRWV\">CRWV<\/a>) to <strong>$110<\/strong>, while <strong>Oppenheimer<\/strong> maintained an Outperform rating with a <strong>$150<\/strong> target. <em>The results provided a tailwind for other AI-related stocks, including Super Micro Computer (<a href=\"\/stock\/SMCI\">SMCI<\/a>), which also saw premarket gains.<\/em><\/p>\n<h2>Middle East Conflict Threatens UK Growth<\/h2>\n<p>UK Treasury officials have released grim economic models indicating that <strong>GDP growth could plummet to 0.3% in 2027<\/strong> if the Strait of Hormuz remains shut due to the ongoing conflict between the US, Israel, and Iran. Under this worst-case scenario, the UK economy could even face a <strong>0.2% contraction<\/strong> if the closure extends into mid-2027.<\/p>\n<p>The strategic waterway is responsible for roughly <strong>one-fifth of the world&#39;s oil and gas supplies<\/strong>. A prolonged disruption is expected to push UK inflation toward <strong>6.4%<\/strong> by the end of 2026. <em>Japanese Prime Minister Sanae Takaichi reportedly held a fourth phone call with Iranian President Pezeshkian today, urging &quot;freedom of navigation&quot; and a de-escalation of military tensions.<\/em><\/p>\n<h2>Geopolitical Shifts and Sanctions<\/h2>\n<p>The US, UK, and EU have intensified their economic pressure on the Kremlin, sanctioning <strong>hundreds of tankers<\/strong> involved in exporting Russian oil. These &quot;shadow fleet&quot; vessels have been critical in funding the war in Ukraine. In response, <strong>Vladimir Putin<\/strong> has threatened retaliation, labeling the potential seizure of Russian commercial ships as &quot;piracy.&quot;<\/p>\n<p>Simultaneously, UK defense officials are being urged to reopen <strong>direct military communication<\/strong> with Russia. High-level contact has been largely non-existent for years, but recent &quot;encounters at sea and in the air&quot;\u2014including a Russian frigate firing warning shots near a British yacht in the English Channel\u2014have raised fears of an <strong>unintended military escalation<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways CoreWeave (CRWV) shares surged 18% in premarket trading after reporting a $2.58 billion revenue quarter and raising its 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