Name: Trump & Iran Back in Focus, Korean Stocks Tumble | The Opening Trade 7/8/2026
Uploaded: 2026-07-08T11:06:14+00:00
Duration: 5764 s

Speakers

Kamal Sharma — G10 FX Strategist, Bank of America Global Research

Christian Mueller-Glissmann — Head of Asset Allocation Research, Goldman Sachs

Guy Johnson — Anchor, Bloomberg

Paul Horvath — CEO and Co-founder, Orchard Global Asset Management

Anthony Stevens — Bloomberg Market Producer

Summary

The episode covers a risk-off morning in Europe driven by renewed US-Iran tensions pushing oil 3% higher and bond yields up on revived inflation fears. The KOSPI closed in a technical bear market as the AI rotation intensified, shifting from Korean memory chips into Chinese tech and US hyperscalers. NATO's summit in Ankara focused on defence spending commitments, while Marine Le Pen's confirmed 2027 candidacy added a political dimension to French bonds. Interviews with BofA and Goldman strategists highlighted a stronger dollar call into Q3 and a preference for Magnificent Seven stocks over semiconductors.

US launches strikes on Iran, testing the ceasefire and sending oil and bond yields higher.
KOSPI enters technical bear market as AI rotation trade gathers pace.
Rotation favours Chinese tech (Alibaba, Tencent) and US hyperscalers over Korean semiconductor names.
NATO summit in Ankara centres on European defence spending and burden sharing.
BofA strategist sees dollar rallying to EUR/USD 1.12 on Fed hike expectations.
Goldman Sachs strategist favours Magnificent Seven over semiconductor stocks.
Marine Le Pen confirms 2027 presidential run, French yield spreads edge wider.
Amazon bond demand weaker than average, raising questions on AI debt appetite.

Ideas

Kamal Sharma G10 FX Strategist, Bank of America Global Research 27:08

Dollar to rally on Fed hike expectations

The US economy has been resilient through the Middle East conflict, with a strong labor market, robust consumer spending, and the overlay of the World Cup. This fundamental strength will trigger a Fed rate hike towards the end of the year, keeping the path of least resistance for the dollar to rally into Q3. EUR/USD is seen falling to 1.12.

Christian Mueller-Glissmann Head of Asset Allocation Research, Goldman Sachs 52:45

Rotation into hyperscalers from overbought semiconductors

Within the AI ecosystem, the hyperscalers (Magnificent Seven) are well positioned right now because they own much of the infrastructure and are likely to start focusing on monetizing AI rather than just spending. Positioning and momentum in semiconductor stocks had become extreme, and a reversal back into the hyperscalers is underway, with dispersion continuing to create winners and losers. The hyperscalers should trade better in the near term as the rotation out of semiconductors gathers pace.

This Bloomberg Markets video, published July 08, 2026, features Kamal Sharma, Christian Mueller-Glissmann discussing EUR/USD, MAGS. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kamal Sharma, Christian Mueller-Glissmann · Tickers: EUR/USD, MAGS

Trump & Iran Back in Focus, Korean Stocks Tumble | The Opening Trade 7/8/2026

Summary

Ideas

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