Global Market Weekly Recap: ASML Faces China Export Risks, Nokia Gains from AI Demand, Shell Reshapes Portfolio
Global markets witnessed several important developments this week as technology, telecom, energy, healthcare, and consumer companies announced major updates. Investors closely followed concerns around ASML’s China business, Nokia’s growing role in AI infrastructure, Shell’s strategic asset sales, Abivax’s fundraising efforts, and British American Tobacco’s restructuring plans.
Here is a simple overview of the biggest global market stories from the week.
ASML Faces Export Restriction Concerns Ahead of Q2 Results
Dutch semiconductor equipment maker ASML remained in focus after reports suggested that new U.S. export restrictions could affect the company’s ability to ship advanced lithography machines to China.
According to European Union warnings, stricter export controls may limit ASML’s sales to Chinese customers. Since China is an important market for semiconductor manufacturing equipment, any restrictions could impact future revenue growth and create supply chain challenges.
Investors are now waiting for ASML’s second-quarter earnings report, scheduled for July 15. Market analysts at UBS expect the company to generate between €36 billion and €40 billion in sales during 2026. They also believe ASML could achieve a gross margin between 51% and 53%, with the possibility of reaching the upper end of that range if demand remains strong.
Despite concerns over export restrictions, ASML shares remained relatively stable during the week, reflecting investor confidence in the company’s long-term position within the global semiconductor industry.
Nokia Benefits from Rising AI and Cloud Infrastructure Demand
Finnish telecom equipment company Nokia continued to benefit from growing investment in artificial intelligence and cloud computing infrastructure.
Analysts at Bank of America expect Nokia’s AI-related orders in the second quarter to match or exceed the €1 billion recorded during the first quarter. The growing need for data centers, network switches, and optical communication equipment is creating new opportunities for the company.
Nokia also secured an important contract with Orange Belgium to upgrade its optical network. The project will increase network capacity, improve support for 5G services, strengthen security through quantum-resistant technologies, and handle rising AI-related data traffic.
Meanwhile, regulatory filings showed that investment firm FMR LLC reduced its voting stake in Nokia to below 5%. Although such changes are closely monitored by investors, the market remained focused on Nokia’s improving business outlook and AI-driven growth opportunities.
Shell Continues Strategic Transformation
Energy giant Shell remained active on several fronts as it continued reshaping its global portfolio while maintaining shareholder returns.
One of the biggest announcements was Shell’s agreement to sell its interests in the Na Kika and Coulomb offshore assets to companies linked to Talos Energy and Ridgewood. The transaction is valued at approximately $1.7 billion and is expected to be completed by the end of 2026.
Shell is also reportedly close to selling around 600 fuel stations in South Africa to a retail unit of ADNOC for roughly $1 billion. If completed, the deal would represent one of the largest retail fuel transactions in the region.
The company remains optimistic about the future of liquefied natural gas (LNG). Shell forecasts that global LNG demand could rise by nearly 65% by 2050, reaching around 700 million tonnes annually. The company expects the United States to supply a significant portion of future LNG production capacity.
In its latest business update, Shell reported strong trading gains resulting from volatility in energy markets. However, oil and gas production fell by around 10%, partly due to disruptions linked to geopolitical tensions involving Iran.
UBS analysts believe Shell is likely to continue its current share buyback program at a pace of approximately $3 billion per quarter, highlighting management’s commitment to returning capital to shareholders.
Abivax Raises Nearly $920 Million Through U.S. Offering
Biotechnology company Abivax attracted investor attention after announcing a larger-than-expected U.S. share offering.
The company priced 7.36 million American Depositary Shares (ADS) at $125 per share, raising approximately $920 million before expenses. Net proceeds are expected to be around $874 million.
The funding will support the continued development of obefazimod, the company’s lead treatment candidate for ulcerative colitis. Clinical trial data showed encouraging results after 44 weeks of treatment.
According to the study, remission rates reached 37.2%, while clinical response rates climbed to 61.5%. Researchers also reported significant improvements in endoscopic outcomes. However, some malignancy-related events were observed during the study, which will continue to be monitored.
Abivax plans to submit a New Drug Application (NDA) in the United States during the fourth quarter of 2026, making the coming months crucial for the company.
British American Tobacco Launches Major Restructuring Program
Tobacco giant British American Tobacco announced a significant global restructuring initiative called Fit2Win.
Under the program, the company plans to eliminate approximately 9,000 jobs worldwide, primarily outside the United Kingdom. In addition, around 3,500 positions will be outsourced as part of efforts to improve efficiency and reduce costs.
Management expects the initiative to generate annual savings of approximately £500 million by 2027, increasing to around £600 million by 2028.
The company also confirmed that its next dividend payment will be distributed on August 14, 2026, with July 10 set as the record date for shareholders.
While the restructuring plan is designed to improve long-term profitability, investors reacted cautiously and shares moved slightly lower following the announcement.
Global Market Weekly Outlook
This week’s developments highlighted several key themes shaping global markets. Artificial intelligence continues to drive investment in networking and semiconductor infrastructure, benefiting companies such as Nokia and ASML. At the same time, geopolitical tensions and export restrictions remain important risks for technology firms with exposure to China.
In the energy sector, Shell is actively adjusting its asset portfolio while maintaining confidence in long-term LNG demand growth. Healthcare investors are watching Abivax closely as it advances its ulcerative colitis treatment toward regulatory approval, while British American Tobacco is focusing on cost reductions and operational efficiency.
As earnings season approaches, investors will closely monitor company results and management guidance to determine whether these strategic initiatives can translate into stronger financial performance during the second half of 2026.