Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Italy’s service sector faced mounting cost pressures in April 2026, with businesses reporting the sharpest rise in input prices in more than three years amid ongoing instability in the Middle East. According to the latest HCOB PMI survey released on Wednesday, inflationary pressures continued to weigh heavily on companies, even as overall business activity showed signs of improvement.
The input cost inflation index in Italy’s services sector climbed to 65.5 in April from 64.6 in March, reaching its highest level since February 2023. Analysts linked the increase largely to geopolitical tensions tied to the Iran conflict, which has disrupted supply chains and added uncertainty across European markets.
Despite rising costs, Italy’s headline Services Purchasing Managers’ Index (PMI) improved to 49.8 in April from 48.8 in March. While the reading remained slightly below the 50-point threshold that separates economic expansion from contraction, it performed far better than market expectations. Economists surveyed by Reuters had forecast a weaker reading of 47.6.
S&P Global economist Eleanor Dennison said uncertainty surrounding the Middle East conflict continued to impact customer demand while simultaneously driving up operating expenses for businesses. Companies struggled to transfer higher costs to consumers due to already weak demand conditions, leading to tighter profit margins across the sector.
Dennison warned that if the pressure on margins continues, businesses may reduce hiring activity and delay investments, potentially affecting Italy’s broader economic outlook.
Italy’s manufacturing sector also experienced rising inflationary pressures, with factory input costs reaching their highest level in nearly four years. However, the country’s composite PMI index, which combines both manufacturing and services activity, rose to 50.5 in April from 49.2 in March, signaling a return to modest overall economic growth after the previous month’s contraction.
