Global Markets This Week: How International Stocks Are Performing

As of July 14, 2026, international stock markets have underperformed US equities this week amid Middle Eastern geopolitical escalation, with emerging markets hit particularly hard by a spike in oil prices and recent semiconductor weakness. Developed markets outside the US declined modestly on similar concerns. Asia's technology-dependent regions have borne the sharpest losses despite strong year-to-date gains.

Developed Markets Show Modest Weakness

The S&P 500 fell 0.73% on the day etfaction.com, but broader developed markets outside the US have performed worse. The iShares MSCI EAFE ETF, which tracks developed markets in Europe, Australia, and the Far East, declined 1.04% on the day etfaction.com. Year-to-date performance across major developed economies is mixed: Japan has gained 15.45%, while Germany and France lag at negative 1.06% and positive 2.01% respectively.

Canada bucked the weakness, edging 0.14% higher on the day etfaction.com, as its energy sector benefits from surging crude prices. Japan's year-to-date outperformance reflects strong earnings and a weaker yen, though it still declined 1.94% on Monday alongside other Asian peers facing broader selling pressure.

Emerging Markets Under Pressure from Oil and Tech Concerns

Emerging markets experienced steeper losses as geopolitical tension rippled through the sector. The broad emerging markets ETF (EEM) fell 3.59% on the day etfaction.com, with Asian technology hubs taking the sharpest blows. South Korea's EWY experienced an exceptionally sharp 8.45% decline etfaction.com after a major domestic chipmaker slumped, sending ripples through the global semiconductor industry. Taiwan's EWT dropped 4.06%, and India's INDA fell 1.03%. Despite Monday's losses, emerging markets have posted strong year-to-date gains in many cases, with South Korea's EWY up 72.82% and Taiwan's EWT up 60.37% from the start of the year, reflecting sustained investor appetite for AI-related semiconductor exposure.

The volatility exposes a structural tension: investors' appetite for AI has driven strong flows into Asia's tech-heavy markets, making them vulnerable to sharp swings as concerns over the sustainability of the rally trigger periodic profit-taking lse.co.uk. China's stocks managed a modest gain, rising 2.2% after export data showed a surge in semiconductor and computing-power orders lse.co.uk.

What's Driving This Week's Moves

Oil prices surged dramatically on Middle Eastern escalation. As of July 14, 2026, Brent Crude jumped 9.13% and WTI Crude gained 8.36% etfaction.com after President Trump announced the reinstatement of a US blockade of Iranian shipping and a 20% fee on cargo through the Strait of Hormuz lse.co.uk. Oil futures were at $78.94 per barrel, up 1.05%, while Brent stood at $84.57 lse.co.uk.

Yet a counterbalancing force emerged from softer inflation data. The US Consumer Price Index rose 3.5% in the 12 months through June, down from 4.2% in May lse.co.uk. This prompted a weakening of the dollar lse.co.uk and a fall in Treasury yields, which typically support non-US equities by making dollar-denominated assets less attractive. Gold rose 2.02% to $4,080.49 an ounce lse.co.uk, and broad commodities advanced 2.11% etfaction.com.

What to Watch

Keep an eye on the duration of Middle East hostilities and their impact on oil and inflation data, which will determine whether recent dollar strength and oil gains persist or reverse. Second, monitor Federal Reserve policy direction and whether recent softer inflation data begins to reshape market expectations for rate decisions, potentially driving a more sustained currency and yield environment that lifts international equities. Third, watch for earnings reports and guidance from South Korean and Taiwanese companies, particularly in semiconductors, as profit-taking pressure in Asia continues to clash with long-term AI demand optimism. Finally, track whether emerging market asset managers continue to see robust inflows despite geopolitical uncertainty lse.co.uk, a signal of whether strategic capital remains committed to higher-yielding EM assets.

Using MinMaxDoc as your portfolio analysis tool, you can monitor your own geographic and sector exposures against benchmarks like EFA and EEM, helping you understand whether your international holdings are positioned for near-term volatility or longer-term structural growth in emerging market technology and other sectors.

Disclaimer: This content is for educational and informational purposes only and does not constitute financial, investment, or tax advice. The information presented reflects the author's opinions and analysis at the time of writing and may not be suitable for your individual circumstances. Always consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results. MinMaxDoc and its authors are not registered investment advisors.