Quote from Nick on 23rd July 2026, 8:50 am

Technical analysis for 23rd July 2026

Today's session starts with two competing themes. The first is another very strong set of earnings from the technology sector.

Alphabet once again demonstrated the strength of cloud computing and artificial intelligence, while management also confirmed another significant increase in AI infrastructure spending. Tesla's results reinforced the same message — the investment cycle in AI and automation is still accelerating.

The second theme is much less supportive. Oil has continued climbing overnight and is now trading around six-week highs following renewed attacks on shipping routes in the Middle East. Brent is approaching the $100 level, Treasury yields have moved higher again and inflation has returned to the top of the market's worry list.

So although Asian equity markets have reacted positively to the AI story, investors are still questioning whether the scale of spending can ultimately justify current valuations.

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