Market Update
European Markets Overlooked Latest U.S. Tariff Threats; Copper Hits New Record High
Bridgette Randall
09 Jul, 2025
London
European markets advanced on Wednesday, and investors ignored the new U.S. tariff threats.
Benchmark indexes in Frankfurt, Paris, Milan, and London headed higher in cautious trading ahead of the start of the earnings season this week.
Investors turned cautious and refrained from making larger bets amid heightened trade tensions with the U.S. after the U.S. president said he plans to announce additional import duties on the EU in retaliation to duties on U.S. technology firms.
The Trump administration's threats are increasingly ignored by the European investors, because Donald Trump always backs down at the last minute and lowers the previously announced arbitrary tariffs.
Banks traded higher after UniCredit SpA increased its direct equity stake in the Germany-based Commerzbank and signaled its intention is for passive investment only.
Europe Stock Movers
Mining companies declined amid a drop in copper prices after the U.S. president proposed to levy a 50% tariff on the industrial metal.
Glencore PLC decreased 2.9% to 299.70 pence, Antofagasta plc dropped 1.9% to 1,885.0 pence, and Anglo American plc fell 1.8% to 2,183.95 pence.
Italy-based UniCredit SpA increased its stake in Germany's Commerzbank to 20% from 10%, and following the conversion to an equity stake after winning the approval from the European Central Bank, the Federal Reserve Bank, and German regulators.
The Italian bank reiterated its passive investment in the bank is for financial interest and added it plans to convert its derivative stake and increase its equity holding to 29%.
UniCredit SpA advanced 3.3% to €60.37, and Commerzbank AG gained 0.6% to €30.14.
Europe Wednesday
Bridgette Randall
09 Jul, 2025
London
European markets advanced on Wednesday, and investors ignored the new U.S. tariff threats.
Benchmark indexes in Frankfurt, Paris, Milan, and London headed higher in cautious trading ahead of the start of the earnings season this week.
Investors turned cautious and refrained from making larger bets amid heightened trade tensions with the U.S. after the U.S. president said he plans to announce additional import duties on the EU in retaliation to duties on U.S. technology firms.
The Trump administration's threats are increasingly ignored by the European investors, because Donald Trump always backs down at the last minute and lowers the previously announced arbitrary tariffs.
Banks traded higher after UniCredit SpA increased its direct equity stake in the Germany-based Commerzbank and signaled its intention is for passive investment only.
Europe Stock Movers
Mining companies declined amid a drop in copper prices after the U.S. president proposed to levy a 50% tariff on the industrial metal.
Glencore PLC decreased 2.9% to 299.70 pence, Antofagasta plc dropped 1.9% to 1,885.0 pence, and Anglo American plc fell 1.8% to 2,183.95 pence.
Italy-based UniCredit SpA increased its stake in Germany's Commerzbank to 20% from 10%, and following the conversion to an equity stake after winning the approval from the European Central Bank, the Federal Reserve Bank, and German regulators.
The Italian bank reiterated its passive investment in the bank is for financial interest and added it plans to convert its derivative stake and increase its equity holding to 29%.
UniCredit SpA advanced 3.3% to €60.37, and Commerzbank AG gained 0.6% to €30.14.
Japan Indexes Wavered Amid Shifting U.S.
Akira Ito
09 Jul, 2025
Tokyo
Japan's stock indexes wavered around the flatline amid heightened trade tensions with the U.S.
The Nikkei 225 Stock Average edged up 0.2%, and the broader Topix inched up 0.4%, and Japanese negotiators signaled their unwillingness to accept any level of additional U.S. tariffs.
Japanese vehicles and parts are facing an additional import duty of 25%, and pharmaceutical products are likely to face higher duties as well.
Investor sentiment has weakened over the last two weeks amid constantly changing U.S. trade policy and the lack of clarity about the firm deadline to conclude negotiations.
The Trump administration launched a global tariff war on April 2, targeting key trading partners—China, Japan, Canada, and Mexico.
The erratic trade policy of the Trump administration has wreaked havoc on the shipping and logistics companies, and manufacturing companies in Japan and Asia are facing sharp swings in orders from the U.S.
Moreover, importers and retailers are halting new shipments amid a lack of clarity about the tariff levels at the port of arrivals in the U.S.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.2% to 39,778.08, and the broader Topix advanced 0.4% to 2,826.41.
Semiconductor equipment makers led decliners in Tokyo trading.
Advantest Corp. edged up 0.2% to ¥10,980.0, Tokyo Electron decreased 0.3% to ¥27,175.0, and Fujikura Ltd. declined 1.3% to ¥7,714.0.
Automakers extended losses as the U.S. stayed firm on its demand for additional duties on Japanese vehicles.
Toyota Motor increased 1% to ¥2,487.50, Honda Motor gained 3.3% to ¥1,481.0, and Nissan Motor declined 3.3% to ¥305.50.
Nissan Motor expanded its convertible bond offering to 200 billion yen, or $1.4 billion, from 150 billion yen.
U.S. Movers: AEHR Test Systems
Scott Peters
09 Jul, 2025
New York City
Aehr Test Systems advanced 2.4% to $15.17 despite the semiconductor testing equipment maker’s net income swinging to a loss in the fiscal fourth quarter.
Consolidated revenue in the quarter inched down to $14.1 million from $16.6 million, net income swung to a loss of $2.9 million from a profit of $23.9 million, and diluted income per share swung to a loss of 10 cents from a profit of 82 cents a year ago.
For the fiscal year 2025, revenue decreased to $59 million from $66.2 million, after-tax income swung to a loss of $3.9 million from a profit of $33.1 million, and diluted earnings per share swung to a loss 13 cents from a profit of $1.15 a year ago.
U.S. Movers: AEHR Test Systems
Scott Peters
09 Jul, 2025
New York City
Aehr Test Systems advanced 2.4% to $15.17 despite the semiconductor testing equipment maker’s net income swinging to a loss in the fiscal fourth quarter.
Consolidated revenue in the quarter inched down to $14.1 million from $16.6 million, net income swung to a loss of $2.9 million from a profit of $23.9 million, and diluted income per share swung to a loss of 10 cents from a profit of 82 cents a year ago.
For the fiscal year 2025, revenue decreased to $59 million from $66.2 million, after-tax income swung to a loss of $3.9 million from a profit of $33.1 million, and diluted earnings per share swung to a loss 13 cents from a profit of $1.15 a year ago.
China's Deflation Worries Keep Stocks Under Pressure, Five New Listings In Hong Kong
Li Chen
09 Jul, 2025
Hong Kong
Stocks in China lacked direction amid ongoing trade uncertainty and persistent worries of deflation.
The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index edged slightly higher as investors reviewed the latest reports on inflation.
China's CPI and PPI Confirm Ongoing Deflation Trends
Consumer price inflation edged up unexpectedly 0.1% in June, reversing the decline by the same amount in the previous month, the National Bureau of Statistics reported Wednesday.
Prices of goods decreased 0.2%, services increased 0.5%, and food edged down 0.3% from a year ago, respectively.
The overall price inflation rose for the first time in five months, but demand remained weak despite government subsidy programs to encourage the purchase of household goods and consumer electronics.
Core prices, which exclude volatile food and energy prices, advanced 0.7% from a year ago, their highest level in 14 months.
The producer price index, the measure of prices charged by suppliers, edged down for the 33rd consecutive month and extended the 3.3% decrease in the previous month, the National Bureau of Statistics said in a separate report.
Producer prices fell 2.6% in the first half, and the outlook for prices in the second half is weaker because of the persistent weak domestic demand and uncertain outlook for exports.
China Indexes and Stocks
The Hang Seng Index decreased 0.8% to 23,960.34, and the mainland-focused CSI 300 index gained 0.4% to 4,012.14.
Five companies listed their shares on the Hong Kong Stock Exchange, as more mainland companies seek capital for international expansion.
Wuhan Dazhong Medical jumped 17% to HK $23.20, and the dental company priced its initial public offering at HK $20 per share.
The dental services provider sold 10.8 million shares and raised gross proceeds of HK$217.4 million.
Fortior Technology gained 10% to HK $132.60, and the company priced its public offering at HK $120 per share.
The advanced chip designer for electric motor control and drivers sold 18.7 million and raised a total of HK $2.8 billion.
Lens Technology Co. Ltd. jumped 6% to HK $19.12, and the lens sensor provider for Apple priced its initial public offering at HK $18.18 per share.
The precision manufacturing company for consumer electronics and electric vehicles raised a total of HK $4.7 billion.
Beijing Geekplus Technology traded unchanged at HK $16.81, and the company priced its public offering at HK $16.80 per share.
The autonomous mobile robot maker for warehouses sold 161.45 million shares and raised a total of HK $2.7 billion.
Beijing Xunzhong Communication decreased a fraction to HK $13.46, and the company priced its public offering at HK $13.55 per share.
The cloud-based communication provider in China, with a market share of 1.8%, sold 30.4 million shares and raised a total of HK $412.5 million.
The Hong Kong Stock Exchange led the world's leading stock markets after a string of large and medium-sized companies from the mainland sought new capital.
A total of 44 new companies raised HK $107 billion in the first half of 2025, a sevenfold jump from HK $13.4 billion when 30 new companies raised capital a year ago, according to the Hong Kong Stock Exchange.
China's Deflation Worries Keep Stocks Under Pressure, Five New Listings In Hong Kong
Li Chen
09 Jul, 2025
Hong Kong
Stocks in China lacked direction amid ongoing trade uncertainty and persistent worries of deflation.
The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index edged slightly higher as investors reviewed the latest reports on inflation.
China's CPI and PPI Confirm Ongoing Deflation Trends
Consumer price inflation edged up unexpectedly 0.1% in June, reversing the decline by the same amount in the previous month, the National Bureau of Statistics reported Wednesday.
Prices of goods decreased 0.2%, services increased 0.5%, and food edged down 0.3% from a year ago, respectively.
The overall price inflation rose for the first time in five months, but demand remained weak despite government subsidy programs to encourage the purchase of household goods and consumer electronics.
Core prices, which exclude volatile food and energy prices, advanced 0.7% from a year ago, their highest level in 14 months.
The producer price index, the measure of prices charged by suppliers, edged down for the 33rd consecutive month and extended the 3.3% decrease in the previous month, the National Bureau of Statistics said in a separate report.
Producer prices fell 2.6% in the first half, and the outlook for prices in the second half is weaker because of the persistent weak domestic demand and uncertain outlook for exports.
China Indexes and Stocks
The Hang Seng Index decreased 0.8% to 23,960.34, and the mainland-focused CSI 300 index gained 0.4% to 4,012.14.
Five companies listed their shares on the Hong Kong Stock Exchange, as more mainland companies seek capital for international expansion.
Wuhan Dazhong Medical jumped 17% to HK $23.20, and the dental company priced its initial public offering at HK $20 per share.
The dental services provider sold 10.8 million shares and raised gross proceeds of HK$217.4 million.
Fortior Technology gained 10% to HK $132.60, and the company priced its public offering at HK $120 per share.
The advanced chip designer for electric motor control and drivers sold 18.7 million and raised a total of HK $2.8 billion.
Lens Technology Co. Ltd. jumped 6% to HK $19.12, and the lens sensor provider for Apple priced its initial public offering at HK $18.18 per share.
The precision manufacturing company for consumer electronics and electric vehicles raised a total of HK $4.7 billion.
Beijing Geekplus Technology traded unchanged at HK $16.81, and the company priced its public offering at HK $16.80 per share.
The autonomous mobile robot maker for warehouses sold 161.45 million shares and raised a total of HK $2.7 billion.
Beijing Xunzhong Communication decreased a fraction to HK $13.46, and the company priced its public offering at HK $13.55 per share.
The cloud-based communication provider in China, with a market share of 1.8%, sold 30.4 million shares and raised a total of HK $412.5 million.