Market Update
U.S. and Global Stocks On Defensive Amid Escalating Tensions In Middle East
Barry Adams
13 Jun, 2025
New York City
Wall Street indexes opened sharply lower and extended their decline amid a sharp escalation in tensions in the Middle East.
The S&P 500 index decreased 0.9%, and the tech-heavy Nasdaq Composite fell 0.7% after Israel struck several cities deep into Iran.
For the week, the broader indexes were on track to advance before Friday's sell-off, and the S&P 500 index edged up 0.6%, and the Nasdaq Composite inched higher 0.5%.
Israel confirmed that its air attacks have struck several nuclear installations and military targets in Tehran, Natanz, Tabriz, and other locations.
Iran confirmed that Israel's targeted strikes have killed at least three top commanders and several leading nuclear scientists.
Israel said it will continue the attacks until it has "neutralized" the nuclear threat, without giving details.
Crude oil prices shot up as much as 15% before subsiding to an increase of 5%, and gold edged higher 1%.
The yield on 10-year U.S. Treasury notes edged lower as investors added exposure to bond investments and sought the safety of interest payments over the risk of volatile stocks.
U.S. Stock Movers
Defense stocks advanced after Israel conducted preemptive strikes on nuclear facilities in Iran.
Lockheed Martin Corp. added 3% to $483.50, General Dynamics increased 2.2% to $282.03, and RTX Corp. added 3.5% to $146.0.
Energy explorers advanced, following the surge in oil prices in New York, London, and Asia.
Exxon Mobil increased 3.3% to $146.0, Chevron Corp. added 2.8% to $148.88, and ConocoPhillips advanced 4.5% to $99.0.
European Markets Drop 1% After Israel Strikes Iran
Bridgette Randall
13 Jun, 2025
London
Benchmark indexes across Europe fell sharply after Israel conducted military strikes deep into Iran, raising the prospects of a wider war in the Middle East.
Market indexes in Frankfurt, Paris, Milan, and London declined more than 1%, and energy and defense stocks gained while travel and leisure stocks traded down.
Israel confirmed that it conducted multiple strikes deep into Iran and attacked nuclear infrastructure and military installations.
The attacks on early Friday also killed at least three top military generals and several leading nuclear scientists, according to local reports in Tel Aviv and Tehran.
Crude oil prices and gold advanced, and bond yields edged lower after investors sought safety in precious metals and government bonds.
Europe Indexes and Yields
The DAX index decreased by 1.4% to 23,444.05, the CAC-40 index edged lower 1.2% to 7,674.59, and the FTSE 100 index declined 0.6% to 8,835.31.
The yield on 10-year German bonds inched lower to 2.47%, French bonds increased to 3.19%, UK gilts moved up to 4.51%, and Italian bonds edged higher to 3.44%.
The euro decreased to $1.15; the British pound was lower at $1.36; and the U.S. dollar was higher and traded at 81.08 Swiss cents.
Brent crude increased $3.55 to $72.90 a barrel, and the Dutch TTF natural gas was higher by €0.83 to €37.22 per MWh.
Europe Stock Movers
Thales SA advanced 0.6% to €251.10, Rheinmetall AG advanced 1.2% to €1,773.50, MTU Aero Engines AG declined 1.1% to €341.50, and Safran SA fell 1.6% to €253.90.
BP plc advanced 2.2% to 389.30, Repsol SA gained 1.3% to €12.48, TotalEnergies SE inched higher 2.2% to €55.87, and Shell PLC gained 1.6% to €31.40.
European Markets Drop 1% After Israel Strikes Iran
Bridgette Randall
13 Jun, 2025
London
Benchmark indexes across Europe fell sharply after Israel conducted military strikes deep into Iran, raising the prospects of a wider war in the Middle East.
Market indexes in Frankfurt, Paris, Milan, and London declined more than 1%, and energy and defense stocks gained while travel and leisure stocks traded down.
Israel confirmed that it conducted multiple strikes deep into Iran and attacked nuclear infrastructure and military installations.
The attacks on early Friday also killed at least three top military generals and several leading nuclear scientists, according to local reports in Tel Aviv and Tehran.
Crude oil prices and gold advanced, and bond yields edged lower after investors sought safety in precious metals and government bonds.
Europe Indexes and Yields
The DAX index decreased by 1.4% to 23,444.05, the CAC-40 index edged lower 1.2% to 7,674.59, and the FTSE 100 index declined 0.6% to 8,835.31.
The yield on 10-year German bonds inched lower to 2.47%, French bonds increased to 3.19%, UK gilts moved up to 4.51%, and Italian bonds edged higher to 3.44%.
The euro decreased to $1.15; the British pound was lower at $1.36; and the U.S. dollar was higher and traded at 81.08 Swiss cents.
Brent crude increased $3.55 to $72.90 a barrel, and the Dutch TTF natural gas was higher by €0.83 to €37.22 per MWh.
Europe Stock Movers
Thales SA advanced 0.6% to €251.10, Rheinmetall AG advanced 1.2% to €1,773.50, MTU Aero Engines AG declined 1.1% to €341.50, and Safran SA fell 1.6% to €253.90.
BP plc advanced 2.2% to 389.30, Repsol SA gained 1.3% to €12.48, TotalEnergies SE inched higher 2.2% to €55.87, and Shell PLC gained 1.6% to €31.40.
Japan's Stocks and Bond Yields Declined Amid Escalating Tensions In Middle East
Akira Ito
13 Jun, 2025
Tokyo
Stock market indexes in Japan declined for the second consecutive session amid rising tensions in the Middle East.
The Nikkei 225 Stock Average decreased 1%, and the broader Topix eased nearly 0.9%.
For the week, the Nikkei 225 Stock Average declined 1.2%, and the broader Topix dropped 0.9%.
Crude oil prices surged more than 5% to $71.45 a barrel after Israel struck Iran's military and nuclear installations and killed top military leaders and nuclear scientists.
The yield on 10-year Japanese bonds declined to 1.4% as investors sought safe haven after Israel pledged to continue its strike until it "neutralizes" the nuclear threat from Iran.
Market sentiment was also under pressure after the U.S. president renewed threats of additional tariffs on key trading partners, including Japan.
Japan has urged the U.S. to remove its unilateral 25% tariff on vehicles and automotive components, but so far the U.S. has shown little interest.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 1% to 37,805.74, and Topix dropped 1% to 2,755.61.
Toyota Motor decreased 2.3% to ¥2,555.0, Honda Motor fell 0.5% to ¥1,393.50, and Nissan Motor declined 1.3% to ¥359.10.
Cosmo Energy Holdings gained 1.9% to ¥6,512.0, Idemitsu Kosan Ltd. added 1.1% to ¥886.30, and Eneos Holdings added 1.8% to ¥742.80.
Japan's Stocks and Bond Yields Declined Amid Escalating Tensions In Middle East
Akira Ito
13 Jun, 2025
Tokyo
Stock market indexes in Japan declined for the second consecutive session amid rising tensions in the Middle East.
The Nikkei 225 Stock Average decreased 1%, and the broader Topix eased nearly 0.9%.
For the week, the Nikkei 225 Stock Average declined 1.2%, and the broader Topix dropped 0.9%.
Crude oil prices surged more than 5% to $71.45 a barrel after Israel struck Iran's military and nuclear installations and killed top military leaders and nuclear scientists.
The yield on 10-year Japanese bonds declined to 1.4% as investors sought safe haven after Israel pledged to continue its strike until it "neutralizes" the nuclear threat from Iran.
Market sentiment was also under pressure after the U.S. president renewed threats of additional tariffs on key trading partners, including Japan.
Japan has urged the U.S. to remove its unilateral 25% tariff on vehicles and automotive components, but so far the U.S. has shown little interest.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 1% to 37,805.74, and Topix dropped 1% to 2,755.61.
Toyota Motor decreased 2.3% to ¥2,555.0, Honda Motor fell 0.5% to ¥1,393.50, and Nissan Motor declined 1.3% to ¥359.10.
Cosmo Energy Holdings gained 1.9% to ¥6,512.0, Idemitsu Kosan Ltd. added 1.1% to ¥886.30, and Eneos Holdings added 1.8% to ¥742.80.
China Markets Extended Losses Following Middle East Tensions, Chow Tai Fook Jewellery In Focus
Li Chen
13 Jun, 2025
Hong Kong
China's stock market indexes fell and turned weekly gains to losses after Israel struck key installations in Tehran.
The Hang Seng index decreased 1%, and the CSI 300 index declined 0.8% after crude oil and gold prices jumped following renewed tensions in the Middle East.
Early Friday, Israel said it struck key military and nuclear stations at multiple locations in Iran and killed several top commanders and nuclear scientists.
Oil prices rose after the attack raised the prospect of supply disruption, and bond yields edged lower as investors sought safety in government bonds.
Crude oil prices advanced 7.8% to $73.43 a barrel, and gold jumped 1.1% to $3,423.92 an ounce.
China Indexes and Stocks
PetroChina added 2.2% to HK $7.43, CNOOC Ltd. increased 2.3% to HK $18.74, and Sinopec Shanghai Petrochemical increased 1.6% to HK $1.26.
The Hang Seng index decreased 1% to 23,804.05, and the mainland-focused CSI 300 index dropped 0.8% to 3,860.33.
Chow Tai Fook Jewelry Group Ltd. gained 6.2% to HK $13.04 after the jeweler's net income surpassed expectations.
Revenue declined to HK$89.66 billion from HK$108.71 billion, profit edged down to HK$5.91 billion from HK$6.50 billion, and diluted earnings per share fell to 59.2 cents from 65.0 cents a year ago.
The company closed down 906 points of sale in mainland China amid an ongoing weak demand outlook and lowered the mainland count of locations to 6,501.
E-commerce contributed 5.8% in retail sales volume and 13.8% in volume to mainland performance during the fiscal year 2025.
The significant growth was driven by several key factors, including the establishment of an in-house livestreaming studio and enhanced social media promotions.
U.S. Movers: Adobe, RH
Scott Peters
13 Jun, 2025
New York City
Adobe Inc. eased 1.5% to $407.50 after the content software developer reported results for the fiscal second quarter ending on May 30.
Revenue edged up to $5.87 billion from $5.31 billion, net income climbed to $1.69 billion from $1.57 billion, and diluted earnings per share rose to $3.94 from $3.49 a year ago.
The company repurchased approximately 8.6 million shares during the quarter.
The software company guided third-quarter revenue to be between $5.87 billion and $5.92 billion, compared to $5.41 billion, and non-GAAP earnings per share between $5.15 and $5.20, compared to $4.65 a year earlier, respectively.
For the full year, the company estimated revenue to be between $23.50 billion and $23.60 billion, compared to $21.51 billion, and non-GAAP earnings per share between $20.50 and $20.70, compared to $18.42 a year ago, respectively.
RH Corp. surged 20.2% to $212.56 after the home furnishing retailer reported results for the first quarter of fiscal 2025 ending on May 3.
Revenue jumped to $813.95 million from $726.96 million, net income swung to a profit of $8.04 million from a loss of $3.62 million, and diluted earnings per share swung to a profit of 40 cents from a loss of 20 cents a year ago.
“We are forecasting to generate $250 million to $350 million in free cash flow in 2025,” the company said in a release to investors.
The furniture company has continued to shift sourcing out of China and expects receipts to decrease from 16% in the first quarter to 2% in the fourth quarter, with a meaningful portion of the tariff absorbed by its vendor partners.
“We are now projecting that 52% of our upholstered furniture will be produced in the United States and 21% will be produced in Italy by the end of fiscal 2025,” the company added in the statement.
RH guided second-quarter revenue to grow between 8% and 10% and full-year sales to grow between 10% and 13% amid expansion initiatives globally.
U.S. Movers: Adobe, RH
Scott Peters
13 Jun, 2025
New York City
Adobe Inc. eased 1.5% to $407.50 after the content software developer reported results for the fiscal second quarter ending on May 30.
Revenue edged up to $5.87 billion from $5.31 billion, net income climbed to $1.69 billion from $1.57 billion, and diluted earnings per share rose to $3.94 from $3.49 a year ago.
The company repurchased approximately 8.6 million shares during the quarter.
The software company guided third-quarter revenue to be between $5.87 billion and $5.92 billion, compared to $5.41 billion, and non-GAAP earnings per share between $5.15 and $5.20, compared to $4.65 a year earlier, respectively.
For the full year, the company estimated revenue to be between $23.50 billion and $23.60 billion, compared to $21.51 billion, and non-GAAP earnings per share between $20.50 and $20.70, compared to $18.42 a year ago, respectively.
RH Corp. surged 20.2% to $212.56 after the home furnishing retailer reported results for the first quarter of fiscal 2025 ending on May 3.
Revenue jumped to $813.95 million from $726.96 million, net income swung to a profit of $8.04 million from a loss of $3.62 million, and diluted earnings per share swung to a profit of 40 cents from a loss of 20 cents a year ago.
“We are forecasting to generate $250 million to $350 million in free cash flow in 2025,” the company said in a release to investors.
The furniture company has continued to shift sourcing out of China and expects receipts to decrease from 16% in the first quarter to 2% in the fourth quarter, with a meaningful portion of the tariff absorbed by its vendor partners.
“We are now projecting that 52% of our upholstered furniture will be produced in the United States and 21% will be produced in Italy by the end of fiscal 2025,” the company added in the statement.
RH guided second-quarter revenue to grow between 8% and 10% and full-year sales to grow between 10% and 13% amid expansion initiatives globally.
China Markets Extended Losses Following Middle East Tensions, Chow Tai Fook Jewellery In Focus
Li Chen
13 Jun, 2025
Hong Kong
China's stock market indexes fell and turned weekly gains to losses after Israel struck key installations in Tehran.
The Hang Seng index decreased 1%, and the CSI 300 index declined 0.8% after crude oil and gold prices jumped following renewed tensions in the Middle East.
Early Friday, Israel said it struck key military and nuclear stations at multiple locations in Iran and killed several top commanders and nuclear scientists.
Oil prices rose after the attack raised the prospect of supply disruption, and bond yields edged lower as investors sought safety in government bonds.
Crude oil prices advanced 7.8% to $73.43 a barrel, and gold jumped 1.1% to $3,423.92 an ounce.
China Indexes and Stocks
PetroChina added 2.2% to HK $7.43, CNOOC Ltd. increased 2.3% to HK $18.74, and Sinopec Shanghai Petrochemical increased 1.6% to HK $1.26.
The Hang Seng index decreased 1% to 23,804.05, and the mainland-focused CSI 300 index dropped 0.8% to 3,860.33.
Chow Tai Fook Jewelry Group Ltd. gained 6.2% to HK $13.04 after the jeweler's net income surpassed expectations.
Revenue declined to HK$89.66 billion from HK$108.71 billion, profit edged down to HK$5.91 billion from HK$6.50 billion, and diluted earnings per share fell to 59.2 cents from 65.0 cents a year ago.
The company closed down 906 points of sale in mainland China amid an ongoing weak demand outlook and lowered the mainland count of locations to 6,501.
E-commerce contributed 5.8% in retail sales volume and 13.8% in volume to mainland performance during the fiscal year 2025.
The significant growth was driven by several key factors, including the establishment of an in-house livestreaming studio and enhanced social media promotions.
U.S. Dollar Drops to Nearly Three-Year Low, Stocks Head Lower Amid Trade Policy Flip-Flops
Barry Adams
12 Jun, 2025
New York City
Wall Street indexes declined on Thursday as the U.S. president threatened additional tariffs ahead of the looming deadline.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite declined 0.1%, and Donald Trump announced he would impose additional tariffs if key trading partners failed to agree on a deal before the impending deadline on July 9.
The "sell America" narrative is taking hold as investors pivot to increasing their allocations to financial markets in the eurozone and Asia.
Moreover, the constantly changing trade policy of the Trump administration has also dimmed the safe-haven status of the U.S.
The U.S. dollar index dropped to 97.8, the lowest level since 2022, and the credibility of the Trump administration took another hit after Chinese officials refused to confirm details of the recently agreed "U.S.-China trade framework."
The measure of wholesale inflation increased in May, confirming the expectations set by economists.
The producer price index inched up 2.6% in May, from the upwardly revised 2.5% in April, the U.S. Bureau of Labor Statistics reported Thursday.
The core rate of producer price inflation, which excludes food and energy, inched lower to 3.0% from 3.2% in the previous month.
Continuing Jobless Claims Advance to 4-Year High
Initial jobless claims held steady at the end of last week; however, continuing claims rose, the Department of Labor reported in its weekly update on Thursday.
First-time filings for unemployment insurance were unchanged at 248,000 at the end of the week ending June 7, flat from the upwardly revised previous week's claims.
Meanwhile, continuing claims, which lag by one week, advanced by 54,000 to 1.96 million. and rose to the highest since mid-November 2021.
Initial jobless claims filed by the federal employees, which are not included in the weekly count, increased by 23 to 561.
The federal employees' claims are tracked through a separate system and are closely watched because of the recent dismissals by the Department of Government Efficiency.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.1% to 6,013.74, the Nasdaq Composite edged down 0.1% to 19,601.03, and the Russell 2000 index declined 0.7% to 2,132.87.
The yield on 2-year Treasury notes edged lower to 3.89%, 10-year Treasury notes decreased to 4.37%, and 30-year Treasury bonds declined to 4.84%.
WTI crude oil decreased $0.81 to $67.34 a barrel, and natural gas prices edged higher by $0.09 to $3.60 a thermal unit.
Gold increased by $26.74 to 3,392.02 an ounce, and silver edged down by $0.11 to $36.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.78 to 97.86 and traded at the lowest level since April 2022.
U.S. Movers
Boeing Company declined 6% to $201.06 after an Air India Dreamliner 787 crashed after takeoff with 242 passengers on board.
After the crash news, engine makers and other systems suppliers to Boeing fell.
General Electric Company fell 2.2% to $239.13, and Spirit AeroSystems Holdings dropped 2.1% to $37.32.
Oracle Corporation soared 8.6% to $191.50 after the company's fiscal fourth-quarter results surpassed market expectations, and the company signaled additional cloud revenue growth ahead.
U.S. Dollar Drops to Nearly Three-Year Low, Stocks Head Lower Amid Trade Policy Flip-Flops
Barry Adams
12 Jun, 2025
New York City
Wall Street indexes declined on Thursday as the U.S. president threatened additional tariffs ahead of the looming deadline.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite declined 0.1%, and Donald Trump announced he would impose additional tariffs if key trading partners failed to agree on a deal before the impending deadline on July 9.
The "sell America" narrative is taking hold as investors pivot to increasing their allocations to financial markets in the eurozone and Asia.
Moreover, the constantly changing trade policy of the Trump administration has also dimmed the safe-haven status of the U.S.
The U.S. dollar index dropped to 97.8, the lowest level since 2022, and the credibility of the Trump administration took another hit after Chinese officials refused to confirm details of the recently agreed "U.S.-China trade framework."
The measure of wholesale inflation increased in May, confirming the expectations set by economists.
The producer price index inched up 2.6% in May, from the upwardly revised 2.5% in April, the U.S. Bureau of Labor Statistics reported Thursday.
The core rate of producer price inflation, which excludes food and energy, inched lower to 3.0% from 3.2% in the previous month.
Continuing Jobless Claims Advance to 4-Year High
Initial jobless claims held steady at the end of last week; however, continuing claims rose, the Department of Labor reported in its weekly update on Thursday.
First-time filings for unemployment insurance were unchanged at 248,000 at the end of the week ending June 7, flat from the upwardly revised previous week's claims.
Meanwhile, continuing claims, which lag by one week, advanced by 54,000 to 1.96 million. and rose to the highest since mid-November 2021.
Initial jobless claims filed by the federal employees, which are not included in the weekly count, increased by 23 to 561.
The federal employees' claims are tracked through a separate system and are closely watched because of the recent dismissals by the Department of Government Efficiency.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.1% to 6,013.74, the Nasdaq Composite edged down 0.1% to 19,601.03, and the Russell 2000 index declined 0.7% to 2,132.87.
The yield on 2-year Treasury notes edged lower to 3.89%, 10-year Treasury notes decreased to 4.37%, and 30-year Treasury bonds declined to 4.84%.
WTI crude oil decreased $0.81 to $67.34 a barrel, and natural gas prices edged higher by $0.09 to $3.60 a thermal unit.
Gold increased by $26.74 to 3,392.02 an ounce, and silver edged down by $0.11 to $36.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.78 to 97.86 and traded at the lowest level since April 2022.
U.S. Movers
Boeing Company declined 6% to $201.06 after an Air India Dreamliner 787 crashed after takeoff with 242 passengers on board.
After the crash news, engine makers and other systems suppliers to Boeing fell.
General Electric Company fell 2.2% to $239.13, and Spirit AeroSystems Holdings dropped 2.1% to $37.32.
Oracle Corporation soared 8.6% to $191.50 after the company's fiscal fourth-quarter results surpassed market expectations, and the company signaled additional cloud revenue growth ahead.