Market Update
China Indexes Traded Down Amid Worries of Higher Hurdles for U.S. Exports
Li Chen
03 Jul, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds as investors feared higher hurdles for Chinese exports to the U.S.
The Hang Seng index declined by more than 1%, while the mainland-focused index fluctuated around the flatline.
Market sentiment soured after the U.S. struck a preliminary trade agreement with Vietnam that increases import tax to 20% on most shipments.
Transshipped goods from China will face a higher duty of 40%, raising fears that the Trump administration is targeting China.
Trade negotiators are signaling that the Chinese goods shipped through Mexico, Malaysia, Indonesia, and Thailand are likely to face similar punitive import taxes.
Economists are still holding out for the Chinese economy to expand by 5%, the target set by the central government, but export-linked companies may face serious business disruptions in the second half.
China Indexes and Stocks
The Hang Seng index decreased 1.1% to 23,970.64, and the mainland-focused CSI 300 index edged up 0.5% to 3,962.33.
Smartphone and electric vehicle makers traded down amid worries of higher import barriers to the U.S.
Xiaomi Corp. decreased 4.4% to HK $57.50, Li Auto Inc. declined 1.2% to HK $102.20, BYD gained 1.2% to HK $123.10, and Xpeng Inc. edged up 0.8% to $72.90.
Internet platform operators declined after Alibaba Group announced an incentive program to attract merchants and users.
Alibaba Group Holding declined 1.5% to HK $105.50, Tencent Holdings Ltd. fell 0.5% to HK $499.0, JD.com Inc. decreased 1.6% to HK $125.90, and Meituan dropped 2.4% to HK $122.90.
Investors Turn Cautious After Weak Private Payrolls Data
Barry Adams
02 Jul, 2025
New York City
Investors turned defensive ahead of the looming trade deadline next week amid a lack of visible progress.
The S&P 500 index edged 0.1% higher, and the tech-heavy Nasdaq Composite edged 0.2% lower as investors reviewed the latest private sector employment data.
The U.S. private businesses shed jobs for the first time in more than two years in June.
U.S. businesses cut 33,000 net jobs in June following a downwardly revised increase of 29,000 in May, according to the monthly survey released by ADP.
Private employer job additions have been on the declining trend since peaking in October 2024 and now turned negative for the first time since March 2023.
"Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month.
Still, the slowdown in hiring has yet to disrupt pay growth", said Dr. Nela Richardson, ADP's chief economist.
The annual pay growth slowed to annual rate of 4.4% from 4.5% in May, and eased to 6.8% from 7.0% for those seeking to change a job.
The ADP report is viewed with skepticism because of its volatile track record, and investors are now awaiting the release of June's nonfarm payrolls report on Thursday.
The U.S. Bureau of Labor Statistics is scheduled to release its monthly report on Thursday, and investors are anticipating payrolls to expand by at least 90,000.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.02% to 6,196.92, the Nasdaq Composite edged up 0.3% to 20,261.53, and the Russell 2000 index declined 0.1% to 2,194.32.
The yield on 2-year Treasury notes edged lower to 3.78%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds advanced to 4.84%.
WTI crude oil increased $0.65 to $66.10 a barrel, and natural gas prices edged higher by $0.06 to $3.48 a thermal unit.
Gold decreased by $2.19 to $3,336.10 an ounce, and silver edged up by $0.22 to $36.25.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.24 to 97.05 and traded at the lowest level since April 2022.
U.S. Stock Movers
Centene Corporation plunged 29.5% to $39.90 after the health insurance company withdrew its full-year outlook.
The company anticipates the Medicaid Health Benefit Ratio in the second quarter to be higher than in the first quarter.
Moreover, the company revised lower its expected revenue in 22 of the 29 key markets and estimated the annual revenue shortfall to reach as high as $1.8 billion, which corresponds to an adjusted diluted earnings per share impact of $2.75.
"This preliminary estimate includes a projection of the remaining eight months of 2025 and is based on 2025 paid claims through April 30 from Wakely for the 22 states, as well as the company's membership estimates and morbidity trend estimates for both its members and the aggregate market, calculated by state," the company added in a statement to investors.
TechTarget Inc. dropped 9.6% to $9.56 after the company reported a wider loss in the latest quarter.
Investors Turn Cautious After Weak Private Payrolls Data
Barry Adams
02 Jul, 2025
New York City
Investors turned defensive ahead of the looming trade deadline next week amid a lack of visible progress.
The S&P 500 index edged 0.1% higher, and the tech-heavy Nasdaq Composite edged 0.2% lower as investors reviewed the latest private sector employment data.
The U.S. private businesses shed jobs for the first time in more than two years in June.
U.S. businesses cut 33,000 net jobs in June following a downwardly revised increase of 29,000 in May, according to the monthly survey released by ADP.
Private employer job additions have been on the declining trend since peaking in October 2024 and now turned negative for the first time since March 2023.
The ADP report is viewed with skepticism because of its volatile track record, and investors are now awaiting the release of June's nonfarm payrolls report on Thursday.
The U.S. Bureau of Labor Statistics is scheduled to release its monthly report on Thursday, and investors are anticipating payrolls to expand by at least 90,000.
U.S. Stock Movers
Centene Corporation plunged 29.5% to $39.90 after the health insurance company withdrew its full-year outlook.
The company anticipates the Medicaid Health Benefit Ratio in the second quarter to be higher than in the first quarter.
Moreover, the company revised lower its expected revenue in 22 of the 29 key markets and estimated the annual revenue shortfall to reach as high as $1.8 billion, which corresponds to an adjusted diluted earnings per share impact of $2.75.
"This preliminary estimate includes a projection of the remaining eight months of 2025 and is based on 2025 paid claims through April 30 from Wakely for the 22 states, as well as the company's membership estimates and morbidity trend estimates for both its members and the aggregate market, calculated by state," the company added in a statement to investors.
TechTarget Inc. dropped 9.6% to $9.56 after the company reported a wider loss in the latest quarter.
European Markets Hovered Near Record Highs, EU-U.S. Trade Negotiators Struggled to Find Common Ground
Bridgette Randall
02 Jul, 2025
London
European markets retained an upward bias as investors awaited details of the ongoing trade talks with the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and the euro and the pound traded at multi-year highs amid general weakness in the U.S. dollar.
Investors are awaiting the details of trade talks with the U.S. ahead of the U.S.-imposed July 9 deadline.
The U.S. president has threatened to not extend the deadline to impose high tariffs, a negotiating tactic to put pressure on the European Union's negotiators to accept a 25% import tax on vehicle exports.
The scope and the level of U.S. tariffs, which are paid by the U.S. consumers, remain uncertain amid constantly shifting U.S. trade policy.
On the economic front, the number of people registering as unemployed in Spain fell by 48,920, or 2%, from the previous month to 2.406 million in June, according to the data released by the Ministry of Labor and Social Welfare.
The number of registered jobless people dropped to the lowest since June 2008.
Europe Indexes and Yields
The DAX index increased by 0.5% to 23,788.64, the CAC-40 index edged higher by 0.6% to 7,705.34, and the FTSE 100 index advanced 0.2% to 8,804.89.
The yield on 10-year German bonds inched higher to 2.59%, French bonds increased to 3.27%, UK gilts moved up to 4.47%, and Italian bonds edged higher to 3.50%.
The euro decreased to $1.18; the British pound was lower at $1.37; and the U.S. dollar was higher and traded at 79.23 Swiss cents.
Brent crude decreased $0.13 to $66.98 a barrel, and the Dutch TTF natural gas was higher by €0.83 to €33.89 per MWh.
Europe Movers
Fashion stocks advanced after the U.S. dollar hovered near a 40-month low against the euro.
LVMH gained 1.8% to €477.0, Kering SA jumped 2% to €199.64, Hermes International SCA gained 2.1% to €2,342.0, and Moncler SpA inched higher 2% to €50.44.
Volkswagen AG gained 1.9% to €92.90, Mercedes-Benz Group AG advanced 2.5% to €50.61, BMW AG increased 3.3% to €77.82, Renault SA inched higher 1.9% to €40.95, and Stellantis NV edged up 1.6% to €8.75.
European Markets Hovered Near Record Highs, EU-U.S. Trade Negotiators Struggled to Find Common Ground
Bridgette Randall
02 Jul, 2025
London
European markets retained an upward bias as investors awaited details of the ongoing trade talks with the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and the euro and the pound traded at multi-year highs amid general weakness in the U.S. dollar.
Investors are awaiting the details of trade talks with the U.S. ahead of the U.S.-imposed July 9 deadline.
The U.S. president has threatened to not extend the deadline to impose high tariffs, a negotiating tactic to put pressure on the European Union's negotiators to accept a 25% import tax on vehicle exports.
The scope and the level of U.S. tariffs, which are paid by the U.S. consumers, remain uncertain amid constantly shifting U.S. trade policy.
On the economic front, the number of people registering as unemployed in Spain fell by 48,920, or 2%, from the previous month to 2.406 million in June, according to the data released by the Ministry of Labor and Social Welfare.
The number of registered jobless people dropped to the lowest since June 2008.
Europe Indexes and Yields
The DAX index increased by 0.5% to 23,788.64, the CAC-40 index edged higher by 0.6% to 7,705.34, and the FTSE 100 index advanced 0.2% to 8,804.89.
The yield on 10-year German bonds inched higher to 2.59%, French bonds increased to 3.27%, UK gilts moved up to 4.47%, and Italian bonds edged higher to 3.50%.
The euro decreased to $1.18; the British pound was lower at $1.37; and the U.S. dollar was higher and traded at 79.23 Swiss cents.
Brent crude decreased $0.13 to $66.98 a barrel, and the Dutch TTF natural gas was higher by €0.83 to €33.89 per MWh.
Europe Movers
Fashion stocks advanced after the U.S. dollar hovered near a 40-month low against the euro.
LVMH gained 1.8% to €477.0, Kering SA jumped 2% to €199.64, Hermes International SCA gained 2.1% to €2,342.0, and Moncler SpA inched higher 2% to €50.44.
Volkswagen AG gained 1.9% to €92.90, Mercedes-Benz Group AG advanced 2.5% to €50.61, BMW AG increased 3.3% to €77.82, Renault SA inched higher 1.9% to €40.95, and Stellantis NV edged up 1.6% to €8.75.