US labor productivity grew faster than expected in the second quarter, suggesting businesses became more efficient despite only modest increases in working hours.

Germany's factory orders rose 3.1% in June, far exceeding market expectations of 0.3% and marking the strongest monthly increase since March. The rebound followed a weaker performance in May, pointing to improving demand across parts of the manufacturing sector.

US manufacturing expanded at its fastest pace in more than four years in July, signaling continued strength in the industrial sector despite ongoing geopolitical and trade-related challenges. The ISM Manufacturing PMI rose to 55.6, up from 53.3 in June and well above the market forecast of 54.0, marking the strongest reading since May 2022.

Microsoft reported stronger quarterly results, driven by strong demand for cloud services and artificial intelligence. Azure recorded its fastest growth in four years, with annual revenue surpassing $100 billion, reinforcing confidence that AI investments are translating into business growth.

The Federal Reserve left interest rates unchanged, but the decision exposed growing differences within the committee.

Growing differences between the United States and Israel have emerged following a meeting between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. While both countries remain committed to countering Iran, reports suggest they disagree on how the conflict should develop and whether military operations should continue.

The Federal Reserve left its policy rate unchanged at 3.50%–3.75% in July, marking a fifth straight meeting without a change and matching broad expectations.

South Korea's semiconductor-driven market rally is showing signs of fatigue as investors grow more cautious about the long-term outlook for artificial intelligence spending. Despite posting strong earnings, SK Hynix saw its shares fall another 10%, extending losses from recent record highs and highlighting changing market expectations.