The market narrative shifted in July. After months of AI-driven leadership, global equity performance became more mixed. Leading technology indices pulled back, while European and Southeast Asian markets began catching up. At the same time, crude oil prices, agricultural commodities, and US Treasury yields all moved higher. 🔎 What's driving this rotation? 1️⃣ Will the Federal Reserve need to raise rates again? Despite growing market expectations for additional tightening, the Fed left rates unchanged and maintained its Reserve Management Purchases (RMPs). With monthly Core PCE remaining subdued, we assess whether liquidity conditions are still supportive and what investors should watch next. 2️⃣ Is the AI investment cycle entering a new phase? The macro backdrop remains resilient, and we have raised our forecast for upstream chip exports following TSMC's latest earnings. However, this earnings season also revealed an important shift: while AI leaders continue increasing capital expenditure, investors are becoming more focused on cash flow generation, monetization, and returns on investment. 🔗 Full article: https://t.co/rndP32EyjQ