Chipflation

A look at the day ahead in European and global markets

Morning Bid Europe Morning Bid Europe A look at the day ahead in European and global markets By Ankur Banerjee, Asia Finance & Markets Breaking News Correspondent   Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com. Just as investors were settling into the idea that the AI rally still had legs, Apple delivered a reality check that someone has to foot the bill. While iPhone prices will hold, iPads and MacBooks ‌are set to rise as Apple says it can no longer absorb surging memory and storage costs driven by the AI data centre boom. Micron's blowout results this week underscored the shift, with customers locking in $22 billion of supply of its memory chips in a sign of tightening markets and rising pricing power. Today's Market News Asia shares retreat from record as Apple price hikes rain on chip parade Oil down 2% amid resumption of Hormuz shipments even as vessel hit near Oman Trading Day: Tech outlook is cloudy Credit Agricole's Caceis UK censured, pays $42 million to WealthTek clients 'A close call': BofA Global Research drops BoE rate hike forecast on easing inflation OpenAI debut delay? Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration And what does it say when Apple, the world's most valuable consumer electronics ⁠company with supply chain relationships that are the envy of the industry, is not immune to a memory price surge? What's next? Hiking prices of Xbox? Oh. Asian markets sank on Friday as reports that OpenAI is considering holding off on its public debut until next year also soured sentiment. South Korea's KOSPI, a bellwether of the AI trade, tumbled 8% on the day and 9% for the week - its sharpest drop since early March when the Iran war first erupted. Oil, meanwhile, is easing but not out of the picture. More stranded oil tankers are exiting the Strait of Hormuz, although a cargo vessel was hit ‌near Oman, ⁠leaving sentiment fragile. Graphics are produced by Reuters Asian aircon boom Brent and WTI crude have erased almost all the gains sparked by the late February hostilities in the Middle East, but a rebound in demand and gradual normalisation could tighten markets again next year. That easing has offered some relief, but not enough. U.S. inflation broke above 4% for the first time in three years in May, ⁠keeping an interest rate increase from the Federal Reserve firmly on the table. As a result, the U.S. dollar is left standing tall, with the Japanese yen struggling near a 40-year low amid mounting intervention jitters. The dollar ⁠index is set for a 2.6% rise this month, its strongest monthly gain in a year. And we end with the deadly early summer heatwave that has gripped Western Europe, a predicament that's leading ⁠to a boom in sales for Asian makers of air conditioners. Here's an explainer on health risks from extreme heat as temperatures in Britain and Switzerland hit record highs for June.   Key developments that could influence markets on Friday: Economic events: French unemployment for May   Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.   Sponsors are not involved in the creation of newsletters or other Reuters news content. Advertise in this newsletter or on Reuters' website   Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here. This email includes limited tracking for Reuters to understand whether you’ve engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement. Terms & Conditions   © 2026 Thomson Reuters. All rights reserved. 3 Times Square, New York, NY 10036