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- Banking giants UBS, Deutsche Bank and Standard Chartered all reported solid second-quarter results.
- SK Hynix shares sank after a massive jump in profit and revenues failed to meet expectations.
- Technology stocks across Asia fell deeper into the red.
- Oil prices rallied after Iran launched a surprise attack on U.S. forces in the Middle East.
- The U.S. Senate is prepared to vote on a new sanctions package against Russia.
This photograph shows a sign of Swiss giant banking UBS at a branch in Zurich on March 4, 2026. Fabrice Coffrini | AFP | Getty Images
Hello, this is Leonie Kidd coming to you from London.
There are competing market forces for investors to assess today.
A bumper set of earnings from the banks could provide some upside in Europe, with profits from some of the biggest names in the region providing a positive surprise.
But blowout numbers from SK Hynix did little to settle the nerves around tech, with the stock leading declines across the AI-related names in Asia for a second straight day.
And oil will keep everyone on edge, after a resurgence in attacks between the U.S. and Iran after just two days of calm.
What you need to know today
It’s a so-called Super Wednesday for earnings releases across Europe, with the banks taking center stage.
UBS upside
Swiss banking giant UBS has reported a pretax profit of $3.6 billion in the second quarter, flagging strong client momentum across its businesses. The lender reported $36 billion in net new assets at its global wealth management unit, while its investment banking business reported a 31% year-on-year increase in revenue. The bank also announced a share buyback programme worth $3 billion, which it intends to complete in the first half of 2027.
CEO Sergio Ermotti told CNBC’s Carolin Roth that momentum in M&A and capital markets is very good.
Deutsche Bank defies
Deutsche Bank has defied forecasts, reporting second-quarter profit after tax of 1.9 billion euros ($2.2 billion), a 10% gain and a record for that period. The CEO of Germany’s largest lender pointed to strong growth momentum and cost discipline.
Deutsche Bank Chief Financial Officer Raja Akram told CNBC’s Annette Weisbach that performance during the quarter had been driven higher by almost all its business segments.
Standard Chartered share buyback
Standard Chartered half-year pretax profit rose a better-than-expected 9% to $4.8 billion, with the company pointing to strength in its global banking and wealth solutions units. That helped offset ongoing credit charges linked to the Middle East conflict. The bank also announced a new share buyback of $1 billion.
Chief Financial Officer Manus Costello told CNBC’s “Europe Early Edition” that asset quality in the Middle East region remains robust. For more of that interview, watch here.
Great expectations
Sky-high expectations for SK Hynix have driven the stock back into the red on Wednesday.
The South Korean semiconductor group posted a 557% surge in second-quarter operating profit and tripled revenues on the year, but both metrics missed analysts’ expectations, sending the shares sharply lower.
The declines weighed across the Asian session more broadly. Technology stocks deepened their sell-off, with heavy pressure on names like Samsung, Softbank and Tokyo Electron.
Surprise attacks
Crude prices have risen sharply after Iran launched an unexpected attack on U.S. forces in the region.
“Islamic Revolutionary Guard Corps forces launched multiple ballistic missiles from Iran in an attempted surprise attack on U.S. forces based in the Middle East,” according to a post on X by the U.S. Central Command.
Tensions have escalated after a two-day pause in hostilities between Washington and Tehran.
Russia sanctions
The U.S. Senate agreed late Tuesday to vote on a sanctions bill against Russia, named for the late Sen. Lindsey Graham of South Carolina. The long-awaited move would include a package of sanctions and tariff authority targeting Russian oil sales.
Ukraine’s President Volodymyr Zelenskyy met with U.S. President Donald Trump at the White House on Tuesday, amid an improvement in relations and rhetoric between the two nations.
— Leonie Kidd
And Finally…
Why America’s super rich have embraced the appeal of British soccer teams
As the dust settles after the FIFA World Cup, soccer fans’ attention turns to the start of Europe’s domestic league seasons. The English Premier League — by some distance the most popular soccer league in the world — kicks off once again on August 21 with champions Arsenal launching their title defense.
Growing American interest in the league is evident not just in broadcast viewing figures and social media hype — but increasingly in boardrooms, too. English soccer clubs, or football clubs, per the sport’s more common global name, have become hot commodities for ultra-rich and institutional ownership over the years. What began with the Glazer family’s takeover of Manchester United in 2005 has proliferated to American control of 11 of the 20 current Premier League sides.
— Joseph Wilkins
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