Market Update
European Markets Lacked Direction Amid Trade Uncertainties, UK's Inflation Accelerated In June
Bridgette Randall
16 Jul, 2025
London
European markets traded down, and investors shifted their attention to the latest batch of quarterly results.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower amid ongoing trade uncertainties with the U.S.
Investors were on the defensive after the U.S. president threatened additional levies on pharmaceutical and semiconductor shipments from the European Union.
Investors have generally ignored constant flip-flops of the U.S. trade policy announcements from the Trump administration, while negotiators are looking to finalize a broad framework.
On the economic front, the annual inflation in the U.K. in June rose to an eighteen-month high, according to a report by the Office for National Statistics.
Consumer price inflation accelerated to 3.6% in June, up from 3.4% in May, and reached the highest level since January 2024.
The rise in inflation was driven largely by the increase in transportation prices by 1.7%, but services inflation held steady, and housing and utilities prices rose at a slower pace of 7.5% compared to a 7.7% annual pace in the previous month.
Europe Stock Movers
ASML Holding decreased 7.1% to €656.0, and the company reported better-than-expected results in the second quarter.
However, the company's 2026 outlook overshadowed quarterly results after the company estimated no revenue growth, including risks of U.S. tariffs on systems and parts shipped to the U.S.
Richemont SA jumped 2.2% to €163.05, and the luxury group reported better-than-expected revenue in the second quarter, but profit margins were under pressure.
European Markets Lacked Direction Amid Trade Uncertainties, UK's Inflation Accelerated In June
Bridgette Randall
16 Jul, 2025
London
European markets traded down, and investors shifted their attention to the latest batch of quarterly results.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower amid ongoing trade uncertainties with the U.S.
Investors were on the defensive after the U.S. president threatened additional levies on pharmaceutical and semiconductor shipments from the European Union.
Investors have generally ignored constant flip-flops of the U.S. trade policy announcements from the Trump administration, while negotiators are looking to finalize a broad framework.
On the economic front, the annual inflation in the U.K. in June rose to an eighteen-month high, according to a report by the Office for National Statistics.
Consumer price inflation accelerated to 3.6% in June, up from 3.4% in May, and reached the highest level since January 2024.
The rise in inflation was driven largely by the increase in transportation prices by 1.7%, but services inflation held steady, and housing and utilities prices rose at a slower pace of 7.5% compared to a 7.7% annual pace in the previous month.
Europe Stock Movers
ASML Holding decreased 7.1% to €656.0, and the company reported better-than-expected results in the second quarter.
However, the company's 2026 outlook overshadowed quarterly results after the company estimated no revenue growth, including risks of U.S. tariffs on systems and parts shipped to the U.S.
Richemont SA jumped 2.2% to €163.05, and the luxury group reported better-than-expected revenue in the second quarter, but profit margins were under pressure.
Stock Movers: Citigroup, JPMorgan Chase, Wells Fargo
Scott Peters
15 Jul, 2025
New York City
Wells Fargo & Co. dropped 5.5% to $78.86 after the California-based bank reported fiscal second quarter results ending in June.
Consolidated revenue in the quarter edged up to $20.8 billion from $20.7 billion, net income advanced to $5.5 billion from $4.9 billion, and diluted earnings per share rose to $1.60 from $1.30 a year ago.
Chief Executive Officer Charlie Scharf commented, “As we have been investing to drive organic growth and improve the earnings capacity in each of our businesses, we have also been returning excess capital to shareholders."
During the first half of this year, the company repurchased over $6 billion of common stock, and the company plans to increase third-quarter common stock dividend by 12.5% to 45 cents from 40 cents per share.
Citigroup Inc. gained 3.7% to $90.72 after the New York-based bank reported results for the second quarter of 2025.
Revenue decreased 7% to $20 billion from $21.7 billion, net income declined 20% to $3.2 billion from $4 billion, and diluted earnings per share fell to $1.50 from $1.96 a year ago.
The company’s operating expenses were down 2% to $13.2 billion compared to the prior year.
The company guided full-year revenue to be near the upper end of its previous guidance of $84 billion, and the company raised its dividend to 60 cents per share from 56 cents after the completion of the stress test on July 2.
JPMorgan Chase & Co. fell 0.7% to $286.55 after the New York-based bank reported an 18% decline in profit in the second quarter.
Consolidated revenue in the quarter decreased to $44.9 billion from $50.2 billion, net income dropped to $15 billion from $18.1 billion, and diluted earnings per share fell to $5.24 from $6.12 a year ago.
Fixed-income trading increased 14% to $5.7 billion, equities trading revenue rose 15% to $3.2 billion, and investment banking fees advanced 7% to $2.5 billion.
The bank said provision for credit losses was $2.8 billion, lower than the $3.1 billion estimated by analysts.
“Earlier this month, we announced that the Board intends to increase our common dividend for the second time this year, resulting in a 20% cumulative increase compared with the fourth quarter of 2024.
We also repurchased $7 billion of common stock.
We ended the quarter with a 15% CET1 ratio, which remains far in excess of our required capital levels. In addition, we have an extraordinary amount of liquidity, with $1.5 trillion of cash and marketable securities,” the company said in a statement to investors.
Stock Movers: Citigroup, JPMorgan Chase, Wells Fargo
Scott Peters
15 Jul, 2025
New York City
Wells Fargo & Co. dropped 5.5% to $78.86 after the California-based bank reported fiscal second quarter results ending in June.
Consolidated revenue in the quarter edged up to $20.8 billion from $20.7 billion, net income advanced to $5.5 billion from $4.9 billion, and diluted earnings per share rose to $1.60 from $1.30 a year ago.
Chief Executive Officer Charlie Scharf commented, “As we have been investing to drive organic growth and improve the earnings capacity in each of our businesses, we have also been returning excess capital to shareholders."
During the first half of this year, the company repurchased over $6 billion of common stock, and the company plans to increase third-quarter common stock dividend by 12.5% to 45 cents from 40 cents per share.
Citigroup Inc. gained 3.7% to $90.72 after the New York-based bank reported results for the second quarter of 2025.
Revenue decreased 7% to $20 billion from $21.7 billion, net income declined 20% to $3.2 billion from $4 billion, and diluted earnings per share fell to $1.50 from $1.96 a year ago.
The company’s operating expenses were down 2% to $13.2 billion compared to the prior year.
The company guided full-year revenue to be near the upper end of its previous guidance of $84 billion, and the company raised its dividend to 60 cents per share from 56 cents after the completion of the stress test on July 2.
JPMorgan Chase & Co. fell 0.7% to $286.55 after the New York-based bank reported an 18% decline in profit in the second quarter.
Consolidated revenue in the quarter decreased to $44.9 billion from $50.2 billion, net income dropped to $15 billion from $18.1 billion, and diluted earnings per share fell to $5.24 from $6.12 a year ago.
Fixed-income trading increased 14% to $5.7 billion, equities trading revenue rose 15% to $3.2 billion, and investment banking fees advanced 7% to $2.5 billion.
The bank said provision for credit losses was $2.8 billion, lower than the $3.1 billion estimated by analysts.
“Earlier this month, we announced that the Board intends to increase our common dividend for the second time this year, resulting in a 20% cumulative increase compared with the fourth quarter of 2024.
We also repurchased $7 billion of common stock.
We ended the quarter with a 15% CET1 ratio, which remains far in excess of our required capital levels. In addition, we have an extraordinary amount of liquidity, with $1.5 trillion of cash and marketable securities,” the company said in a statement to investors.
Caution Prevailed In Tokyo Trading Ahead of Upper House Elections
Akira Ito
16 Jul, 2025
Tokyo
Investors in Tokyo stayed on the sidelines ahead of the Upper House elections, and the Japanese yen traded near a three-year low of !49 against the U.S. dollar.
The Nikkei 225 Stock Average and the broader Topix lacked direction amid weak market sentiment, and caution prevailed.
Japan's benchmark indexes have struggled as investors grapple with international trade uncertainty, a possible increase in fiscal spending financed by additional debt, and the rising likelihood of the ruling coalition government losing its grip on power.
Moreover, automobile companies faced additional headwinds amid elevated U.S. tariffs and rising global competition from the Chinese electric vehicle makers.
On the economic front, sentiment among large Japanese manufacturers improved in July amid a rebound in expectations in the semiconductor-related companies.
The Reuters Tankan Index for Japanese manufacturers improved to +7 in July from +6 in June, marking the first increase in three months.
While overall sentiment improved, manufacturers are worried about the potential abrupt changes in the U.S. trade policy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.4% to 39,841.01, and the broader Topix edged up 0.03% to 2,826.34.
Tokyo Electron advanced 3.7% to 2,826.34, Advantest Corp. increased 2.2% to ¥11,980.0, Disco Corp. inched higher 1.9% to ¥47,110.0, and Lasertec Corp. gained 3.5% to ¥19,760.0.
Aeon Co. Ltd. increased 1.2% to ¥4,476.0, Fast Retailing edged down 0.7% to ¥44,620.0, Takashimaya Co. Ltd. fell 1% to ¥1,114.0, and Isetan Mitsukoshi Holdings Ltd. decreased 0.2% to ¥2,127.0.
Caution Prevailed In Tokyo Trading Ahead of Upper House Elections
Akira Ito
16 Jul, 2025
Tokyo
Investors in Tokyo stayed on the sidelines ahead of the Upper House elections, and the Japanese yen traded near a three-year low of !49 against the U.S. dollar.
The Nikkei 225 Stock Average and the broader Topix lacked direction amid weak market sentiment, and caution prevailed.
Japan's benchmark indexes have struggled as investors grapple with international trade uncertainty, a possible increase in fiscal spending financed by additional debt, and the rising likelihood of the ruling coalition government losing its grip on power.
Moreover, automobile companies faced additional headwinds amid elevated U.S. tariffs and rising global competition from the Chinese electric vehicle makers.
On the economic front, sentiment among large Japanese manufacturers improved in July amid a rebound in expectations in the semiconductor-related companies.
The Reuters Tankan Index for Japanese manufacturers improved to +7 in July from +6 in June, marking the first increase in three months.
While overall sentiment improved, manufacturers are worried about the potential abrupt changes in the U.S. trade policy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.4% to 39,841.01, and the broader Topix edged up 0.03% to 2,826.34.
Tokyo Electron advanced 3.7% to 2,826.34, Advantest Corp. increased 2.2% to ¥11,980.0, Disco Corp. inched higher 1.9% to ¥47,110.0, and Lasertec Corp. gained 3.5% to ¥19,760.0.
Aeon Co. Ltd. increased 1.2% to ¥4,476.0, Fast Retailing edged down 0.7% to ¥44,620.0, Takashimaya Co. Ltd. fell 1% to ¥1,114.0, and Isetan Mitsukoshi Holdings Ltd. decreased 0.2% to ¥2,127.0.
China Tech Rally Lost Steam as Investors Refocus On Domestic Economic Issues
Li Chen
16 Jul, 2025
Hong Kong
The early tech rally in Hong Kong fizzled out, and market indexes wavered around the flatline.
The Hang Seng Index advanced 1%, and the mainland-focused CSI 300 index fell 0.3% after investors reassessed the latest batch of mixed economic data.
China's economy has been resilient amid U.S. trade barriers, but the looming U.S. tariffs, protracted property market weakness, and weakening consumer confidence are keeping investors on edge
China's second-quarter GDP growth and retail sales met investor expectations, but the weakness in the residential market and property investment dampened investor sentiment.
Moreover, the jobless rate held steady at 5% in June, despite the ongoing business disruption in the export sector compounded by the weakness in the property market.
Investors view China's employment data with deep skepticism, with most estimating the jobless rate closer to 9% and youth unemployment as high as 35%.
China Stocks and Indexes
The Hang Seng index increased 0.5% to 24,703.06, and the mainland-focused CSI 300 index edged down 0.3% to 4,007.81.
Tech stocks led the market rebound after the California-based Nvidia said it plans to resume selling advanced graphic chips to China that meet the U.S. export guidelines.
SMIC added 1.3% to HK $46.20, Xiaomi Corp. increased 0.4% to HK $57.90, and BYD Electronic International decreased 0.3% to HK $33.60.
Huadian New Energy Group soared more than 180% to 8.90 yuan after the company listed its shares on the Shanghai Stock Exchange.
The company sold about 5 billion shares and raised 18 billion yuan in an initial public offering and plans to use the proceeds to finance new wind and solar power projects.