{"id":66646,"date":"2026-08-17T01:38:13","date_gmt":"2026-08-17T05:38:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-stalled-us-iran-peace-talks-and-major-tech-divestments\/66646\/"},"modified":"2026-08-17T01:38:13","modified_gmt":"2026-08-17T05:38:13","slug":"global-markets-react-to-stalled-us-iran-peace-talks-and-major-tech-divestments","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-stalled-us-iran-peace-talks-and-major-tech-divestments\/66646\/","title":{"rendered":"Global Markets React to Stalled US-Iran Peace Talks and Major Tech Divestments"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>)<\/strong> has reached a definitive agreement to sell its videogame arm, <strong>Lingxi Games<\/strong>, to private-equity firm <strong>Trustar Capital<\/strong> for at least <strong>$1.5 billion<\/strong> as it pivots toward AI.<\/li>\n<li><strong>Brent crude<\/strong> futures rose to <strong>$89.40 per barrel<\/strong> on Monday as the <strong>60-day US-Iran ceasefire<\/strong> neared expiration and shipping through the <strong>Strait of Hormuz<\/strong> slowed to a crawl.<\/li>\n<li><strong>Japan Airlines (<a href=\"\/stock\/JAPSY\">JAPSY<\/a>)<\/strong> and <strong>ANA (<a href=\"\/stock\/ALNPY\">ALNPY<\/a>)<\/strong> are reportedly exploring a rare domestic cooperation framework to maintain regional flight services amid shifting demand.<\/li>\n<li><strong>Rolls-Royce (<a href=\"\/stock\/RYCEY\">RYCEY<\/a>)<\/strong> received a significant target price upgrade from <strong>Citigroup<\/strong> to <strong>1647p<\/strong> (from 1101p) following a <strong>46% surge<\/strong> in H1 operating profits.<\/li>\n<\/ul>\n<h2>Geopolitical Tensions and Energy Markets<\/h2>\n<p>Global energy markets are on edge as <strong>Iranian Foreign Minister Abbas Araghchi<\/strong> stated that Tehran has not yet decided to resume talks with the United States. The 60-day memorandum of understanding is set to expire, and Iran has demanded that Washington lift naval blocks and sanctions before the <strong>Strait of Hormuz<\/strong> can fully reopen. <em>Tanker traffic through the waterway has plummeted<\/em>, with shipping data showing only five commodity vessels transited on Saturday and none on Sunday.<\/p>\n<p><strong>Brent crude<\/strong> futures climbed to <strong>$89.40<\/strong>, reflecting a risk premium as traders weigh the possibility of prolonged maritime disruptions. <strong>U.S. President Donald Trump<\/strong> recently suggested the U.S. might designate the strait as a territory &quot;pretty soon,&quot; further complicating diplomatic efforts. <em>Market participants remain cautious<\/em> as the lack of a fresh macro catalyst from the U.S. left the <strong>DXY<\/strong> marginally softer and <strong>10-year Treasury futures<\/strong> range-bound.<\/p>\n<h2>Alibaba\u2019s Strategic Pivot and Corporate Moves<\/h2>\n<p><strong>Alibaba Group (<a href=\"\/stock\/BABA\">BABA<\/a>)<\/strong> is divesting its gaming unit, <strong>Lingxi Games<\/strong>, in a deal valued at over <strong>$1.5 billion<\/strong>. The sale to <strong>Trustar Capital<\/strong> (an affiliate of <strong>CITIC Capital<\/strong>) is part of a broader restructuring under <strong>CEO Eddie Wu<\/strong> to focus on <strong>artificial intelligence<\/strong> and <strong>cloud computing<\/strong>. Alibaba has set an ambitious target of generating <strong>$100 billion in AI revenue<\/strong> over the next five years.<\/p>\n<p>In the automotive sector, <strong>Geely Auto (<a href=\"\/stock\/GELYF\">GELYF<\/a>)<\/strong> reported a slip in overall profit, though the decline was cushioned by robust <strong>overseas sales<\/strong>. The company achieved record international growth in the first half of 2026, with June exports surpassing <strong>100,000 units<\/strong> for the first time. <em>Expansion into European markets<\/em> remains a key pillar of the &quot;One Geely&quot; strategy to offset domestic price wars.<\/p>\n<h2>Analyst Upgrades and Regional Market Highlights<\/h2>\n<p><strong>Citigroup<\/strong> significantly raised its target price for <strong>Rolls-Royce (<a href=\"\/stock\/RYCEY\">RYCEY<\/a>)<\/strong> to <strong>1647p<\/strong>, citing a <strong>23% increase<\/strong> in 2025 profit forecasts. The bank highlighted the company&#39;s strong cash conversion and increased mid-term profit growth assumptions linked to the <strong>AUKUS<\/strong> defense program. Similarly, <strong>Peel Hunt<\/strong> raised its target for <strong>XP Power (<a href=\"\/stock\/XPPUF\">XPPUF<\/a>)<\/strong> to <strong>2000p<\/strong> from 1900p, maintaining a positive outlook on the industrial power specialist.<\/p>\n<p>In Asia, <strong>Thailand&#39;s SET Index<\/strong> jumped as much as <strong>1.2% to 1,628.31 points<\/strong>, leading regional gains despite a mixed bias in other APAC markets. Meanwhile, the <strong>Philippines<\/strong> successfully awarded <strong>24 billion pesos<\/strong> of 91-day T-bills in its latest auction, reflecting steady domestic demand for short-term government debt. <em>European equity futures<\/em> suggest a marginally higher open, with <strong>Euro Stoxx 50<\/strong> futures up <strong>0.3%<\/strong> as investors await revised Chinese activity data and Canadian inflation figures.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Alibaba (BABA) has reached a definitive agreement to sell its videogame arm, Lingxi Games, to private-equity firm Trustar [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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