Tech Selloff Deepens & SpaceX Scrubs Starship Launch | Daybreak Europe 7/17/2026

Summary

Asian and European markets sold off, led by a deepening tech rout in chipmakers after TSMC earnings sparked capex concerns. SpaceX scrubbed its Starship launch, Netflix's forecast disappointed, and Middle East tensions kept Brent elevated near $85. In the UK, incoming PM Burnham plans North Sea drilling and Thames Water nationalization, while Volvo Cars missed earnings but remained optimistic on electrification.

• Nikkei 225 fell over 5%, its biggest intraday loss in a year, led by semiconductor selloff; TSMC shares dropped 5% despite strong earnings.
• India and FTSE 100 were highlighted as natural shelters during the tech rotation because they lack outsized AI exposure.
• SpaceX scrapped a Starship launch due to engine issues, sending shares lower; the rocket is seen as critical for its space-based AI data center ambitions.
• Netflix earnings showed slowing momentum amid rising competition from YouTube and TikTok, with the stock falling after-hours.
• Middle East conflict escalation supported Brent crude around $85, though long-term bypass infrastructure could diminish Hormuz risk.
• Incoming UK PM Andy Burnham prepares North Sea drilling announcements and public control of Thames Water, while gilt markets watch his chancellor pick.
• Volvo Cars missed Q2 margins but CEO cited cost cuts, unique China advantages, and strong European electrification trends as reasons for optimism.
• Adidas was seen as better positioned than Nike going into the World Cup final due to long-standing FIFA ties and a strong marketing campaign.