Market Update
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 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.
U.S. Inflation Accelerates In June as Trump's Tariffs Lift Prices, Big Banks Kick Off Earnings
Barry Adams
15 Jul, 2025
New York City
Wall Street indexes traded higher as investors reviewed positive earnings from big banks, the inflation report, and Nvidia's announcement.
The S&P 500 index edged up 0.2%, and the tech-focused Nasdaq Composite advanced 0.4%.
Consumer price inflation accelerated for the second consecutive month in June, the highest level since February.
The annual inflation rate increased to 2.7% from 2.4% in May, and core inflation rose to 2.9% from 2.8%, the U.S. Bureau of Labor Statistics reported Tuesday.
On a monthly basis, the headline inflation accelerated to 0.3% from 0.1% in May, the largest increase in five months.
The increase in inflation was driven by faster price increases in food, used car prices, and transportation services, and a smaller decline in energy prices.
However, shelter or housing inflation eased slightly to 3.8% from 3.9% but stayed elevated.
U.S. Stock Movers
JPMorgan Chase & Company decreased 0.7% to $286.70, and the New York-based bank reported better-than-expected quarterly earnings.
Revenue in the second quarter declined 10% to $45.7 billion, and net income dropped 17% to $14.9 billion, or $5.24 per share.
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.
Wells Fargo decreased 3.8% to $80.30, and the California-based bank lowered its 2025 net income outlook from the increase between 1% and 3% to match earnings in the previous year.
However, the bank reported better-than-expected quarterly results in the second quarter.
Citigroup Inc. jumped 1.9% to $89.20 after the bank's results surpassed market expectations.
Revenue in the quarter was $21.7 billion, net income soared 25% to $4.02 billion, and earnings per share were $1.96.
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.
Nvidia Corp. advanced 4% to $171.18, and the company's chief executive said it is confident that it will receive an approval from the U.S. government to sell its advanced H20 graphic chip to China.
U.S. Stocks Advance as Inflation Accelerates, Big Banks Kick Off Earnings
Barry Adams
15 Jul, 2025
New York City
Wall Street indexes traded higher as investors reviewed positive earnings from big banks, the inflation report, and Nvidia's announcement.
The S&P 500 index edged up 0.2%, and the tech-focused Nasdaq Composite advanced 0.4%.
Consumer price inflation accelerated for the second consecutive month in June, the highest level since February.
The annual inflation rate increased to 2.7% from 2.4% in May, and core inflation rose to 2.9% from 2.8%, the U.S. Bureau of Labor Statistics reported Tuesday.
On a monthly basis, the headline inflation accelerated to 0.3% from 0.1% in May, the largest increase in five months.
The increase in inflation was driven by faster price increases in food, used car prices, and transportation services, and a smaller decline in energy prices.
However, shelter or housing inflation eased slightly to 3.8% from 3.9% but stayed elevated.
U.S. Stock Movers
JPMorgan Chase & Company decreased 0.7% to $286.70, and the New York-based bank reported better-than-expected quarterly earnings.
Revenue in the second quarter declined 10% to $45.7 billion, and net income dropped 17% to $14.9 billion, or $5.24 per share.
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.
Wells Fargo decreased 3.8% to $80.30, and the California-based bank lowered its 2025 net income outlook from the increase between 1% and 3% to match earnings in the previous year.
However, the bank reported better-than-expected quarterly results in the second quarter.
Citigroup Inc. jumped 1.9% to $89.20 after the bank's results surpassed market expectations.
Revenue in the quarter was $21.7 billion, net income soared 25% to $4.02 billion, and earnings per share were $1.96.
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.
Nvidia Corp. advanced 4% to $171.18, and the company's chief executive said it is confident that it will receive an approval from the U.S. government to sell its advanced H20 graphic chip to China.
European Markets Attempted to Rebound, Eurozone Industrial Production Expanded In May
Bridgette Randall
15 Jul, 2025
London
European stock market indexes rebounded from modest losses in the previous session as traders awaited an update on trade negotiations 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.
On the economic front, the Euro Area's industrial production in May increased 1.7% from the previous month, according to Eurostat.
The industrial production rebounded from a decline of 2.2% in April, driven by a rebound in energy output to 3.7% from a decline in 2.8%, capital goods production to 2.7% from a fall of 1.3%, and non-durable consumer goods production to 8.5% from a decline of 5.7% in the previous month.
Industrial production on an annual basis, accelerated to 3.7% in May from 0.2% in April.
Europe Stock Movers
Experian plc jumped 4.9% to 4,040.0 pence after the credit reporting company reported better-than-expected revenue growth in the latest quarter.
In addition, the company reiterated its annual outlook, despite the ongoing macroeconomic headwinds.
Barratt Redrow PLC dropped 7.2% to 386.63 pence despite the homebuilder reporting full-year results in line with expectations and reiterating its medium-term outlook.
The company said it launched its £50 million stock repurchase plan immediately and to be completed by the end of 2025, followed by a second phase of £50 million plan to be completed by June 2026.
Ericsson decreased 3.5% to SEK 74.50, and the company reported a better-than-expected earnings despite hit by the U.S. tariffs.
Revenue in the second quarter declined 6% to SEK 56.1 billion from SEK 59.8 billion, net income swung to a profit of SEK 4.6 billion from a loss of SEK 11 billion, and diluted earnings per share rose to SEK 1.37 from a loss of SEK 3.34 a year ago.
Net income in the last year included asset impairment charges of SEK 11.4 billion.
The strengthening of Swedish kronor across several currencies negatively impacted sales by as much as SEK 5 billion, according to a company's presentation.
European Markets Attempted to Rebound, Eurozone Industrial Production Expanded In May
Bridgette Randall
15 Jul, 2025
London
European stock market indexes rebounded from modest losses in the previous session as traders awaited an update on trade negotiations 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.
On the economic front, the Euro Area's industrial production in May increased 1.7% from the previous month, according to Eurostat.
The industrial production rebounded from a decline of 2.2% in April, driven by a rebound in energy output to 3.7% from a decline in 2.8%, capital goods production to 2.7% from a fall of 1.3%, and non-durable consumer goods production to 8.5% from a decline of 5.7% in the previous month.
Industrial production on an annual basis, accelerated to 3.7% in May from 0.2% in April.
Europe Stock Movers
Experian plc jumped 4.9% to 4,040.0 pence after the credit reporting company reported better-than-expected revenue growth in the latest quarter.
In addition, the company reiterated its annual outlook, despite the ongoing macroeconomic headwinds.
Barratt Redrow PLC dropped 7.2% to 386.63 pence despite the homebuilder reporting full-year results in line with expectations and reiterating its medium-term outlook.
The company said it launched its £50 million stock repurchase plan immediately and to be completed by the end of 2025, followed by a second phase of £50 million plan to be completed by June 2026.
Ericsson decreased 3.5% to SEK 74.50, and the company reported a better-than-expected earnings despite hit by the U.S. tariffs.
Revenue in the second quarter declined 6% to SEK 56.1 billion from SEK 59.8 billion, net income swung to a profit of SEK 4.6 billion from a loss of SEK 11 billion, and diluted earnings per share rose to SEK 1.37 from a loss of SEK 3.34 a year ago.
Net income in the last year included asset impairment charges of SEK 11.4 billion.
The strengthening of Swedish kronor across several currencies negatively impacted sales by as much as SEK 5 billion, according to a company's presentation.
Japan's Nikkei 225 Closed Up Following a Rebound In Semiconductor Equipment Makers
Akira Ito
15 Jul, 2025
Tokyo
Japan's stocks recouped losses of the previous session following a rebound in technology stocks.
The Nikkei 225 Stock Average closed up 0.5%, and the broader Topix edged up 0.1%.
Tech stocks led the rebound in Tokyo after Nvidia's CEO Jensen Huang said that the company can soon resume selling advanced chips to China, meeting the guidelines set by the U.S.
Investors reviewed the latest batch of economic data from China, which confirmed that the economy is resilient despite the ongoing tariff tensions in the U.S.
China's second quarter GDP expanded at an annual pace of 5.2%, slower than the 5.4% in the first quarter, the National Bureau of Statistics reported Tuesday.
New property prices in June fell 0.3% from the previous month, faster than the 0.2% rate in the previous month, signaling ongoing demand weakness.
Domestically, investors awaited the release of inflation and international trade data later this week.
Japan's 10-year bond yield rose to 1.59%, the highest since 2008, amid expectations that the fiscal spending is likely to expand ahead of the Upper House election this Sunday.
The yen hovered at a two-month low of 147 against the U.S. dollar, as traders worried about the persistent trade tensions with the U.S.
Japan Stocks and Indexes
The Nikkei 225 Stock Average edged up 0.5% to 39,678.02, and the broader Topix gained 0.1% to 2,825.31.
Tokyo Electron Ltd. increased 3.4% to ¥27,410.0; Advantest Corp. gained 1.8% to ¥11,720.0; and Disco Corp. jumped 4.4% to ¥46,250.0.
Seven & I Holdings decreased 0.1% to ¥2,198.50, Fast Retailing advanced 1.8% to ¥44,920.0, and Aeon Co. Ltd. added 0.2% to ¥4,421.0.
Japan's Nikkei 225 Closed Up Following a Rebound In Semiconductor Equipment Makers
Akira Ito
15 Jul, 2025
Tokyo
Japan's stocks recouped losses of the previous session following a rebound in technology stocks.
The Nikkei 225 Stock Average closed up 0.5%, and the broader Topix edged up 0.1%.
Tech stocks led the rebound in Tokyo after Nvidia's CEO Jensen Huang said that the company can soon resume selling advanced chips to China, meeting the guidelines set by the U.S.
Investors reviewed the latest batch of economic data from China, which confirmed that the economy is resilient despite the ongoing tariff tensions in the U.S.
China's second quarter GDP expanded at an annual pace of 5.2%, slower than the 5.4% in the first quarter, the National Bureau of Statistics reported Tuesday.
New property prices in June fell 0.3% from the previous month, faster than the 0.2% rate in the previous month, signaling ongoing demand weakness.
Domestically, investors awaited the release of inflation and international trade data later this week.
Japan's 10-year bond yield rose to 1.59%, the highest since 2008, amid expectations that the fiscal spending is likely to expand ahead of the Upper House election this Sunday.
The yen hovered at a two-month low of 147 against the U.S. dollar, as traders worried about the persistent trade tensions with the U.S.
Japan Stocks and Indexes
The Nikkei 225 Stock Average edged up 0.5% to 39,678.02, and the broader Topix gained 0.1% to 2,825.31.
Tokyo Electron Ltd. increased 3.4% to ¥27,410.0; Advantest Corp. gained 1.8% to ¥11,720.0; and Disco Corp. jumped 4.4% to ¥46,250.0.
Seven & I Holdings decreased 0.1% to ¥2,198.50, Fast Retailing advanced 1.8% to ¥44,920.0, and Aeon Co. Ltd. added 0.2% to ¥4,421.0.
China's Economic Growth Steady Despite U.S. Tariff Headwinds, Property Market Weakness Persists
Li Chen
15 Jul, 2025
Hong Kong
Stocks in China lost early momentum after investors digested the latest batch of mixed economic data.
The Hang Seng index edged up 0.2% and eased from a rebound of 1.5%, and the mainland-focused CSI 300 index decreased 0.5%.
Investors welcomed the second quarter's GDP growth data, but the weak updates on retail sales, property prices, and fixed investment kept investor enthusiasm in check.
China's GDP expanded at an annual pace of 5.2% in the second quarter, slightly lower than the 5.4% increase in the first quarter, the National Bureau of Statistics reported Tuesday.
For the first half, the economy expanded at an annual pace of 5.3%, confirming that China's economy is resilient despite the threats of monster tariffs.
The 52% growth in the first half was driven by consumer spending, with exports contributing about 31.2%.
Beijing is looking to decrease the economy's reliance on exports, but the government's trade-in program worth 300 billion yuan (or $42 billion) for cars, household appliances, and consumer goods is losing steam.
Retail sales advanced at an annual pace of 4.8% in June, slower than a 6.4% rate in May, according to the National Bureau of Statistics.
The jobless rate held at 5% in June, matching the rate in the previous month, according to the official data released by the NBS.
Overall fixed investment increased 2.8% from a year ago in the first six months compared to a 3.7% rise in the January-May period.
The weakness in the property sector weighed heavily on the economy, and investment dropped 11.2% in the first six months, compared to a decline of 10.7% in the first five months.
China Indexes and Stocks
The Hang Seng index increased 0.2% to 24,250.90, and the mainland-focused CSI 300 index decreased 0.5% to 3,997.40.
Property stocks declined after new home prices in 70 major cities fell 0.3% from the previous month in June.
China Vanke Co. Ltd. decreased 2.4% to HK $5.19, after the real estate developer said net loss in the first half is likely to expand to between 10 billion yuan and 12 billion yuan, compared to 9.85 billion yuan in the same period a year ago.
Longfor Group Holdings Ltd. decreased 2.4% to HK $10.14, China Resources Land Ltd. fell 3% to HK $28.60, and China Overseas Land & Investment Ltd. declined 1.4% to HK $13.50.
China's Economic Growth Steady Despite U.S. Tariff Headwinds, Property Market Weakness Persists
Li Chen
15 Jul, 2025
Hong Kong
Stocks in China lost early momentum after investors digested the latest batch of mixed economic data.
The Hang Seng index edged up 0.2% and eased from a rebound of 1.5%, and the mainland-focused CSI 300 index decreased 0.5%.
Investors welcomed the second quarter's GDP growth data, but the weak updates on retail sales, property prices, and fixed investment kept investor enthusiasm in check.
China's GDP expanded at an annual pace of 5.2% in the second quarter, slightly lower than the 5.4% increase in the first quarter, the National Bureau of Statistics reported Tuesday.
For the first half, the economy expanded at an annual pace of 5.3%, confirming that China's economy is resilient despite the threats of monster tariffs.
The 52% growth in the first half was driven by consumer spending, with exports contributing about 31.2%.
Beijing is looking to decrease the economy's reliance on exports, but the government's trade-in program worth 300 billion yuan (or $42 billion) for cars, household appliances, and consumer goods is losing steam.
Retail sales advanced at an annual pace of 4.8% in June, slower than a 6.4% rate in May, according to the National Bureau of Statistics.
The jobless rate held at 5% in June, matching the rate in the previous month, according to the official data released by the NBS.
Overall fixed investment increased 2.8% from a year ago in the first six months compared to a 3.7% rise in the January-May period.
The weakness in the property sector weighed heavily on the economy, and investment dropped 11.2% in the first six months, compared to a decline of 10.7% in the first five months.
China Indexes and Stocks
The Hang Seng index increased 0.2% to 24,250.90, and the mainland-focused CSI 300 index decreased 0.5% to 3,997.40.
Property stocks declined after new home prices in 70 major cities fell 0.3% from the previous month in June.
China Vanke Co. Ltd. decreased 2.4% to HK $5.19, after the real estate developer said net loss in the first half is likely to expand to between 10 billion yuan and 12 billion yuan, compared to 9.85 billion yuan in the same period a year ago.
Longfor Group Holdings Ltd. decreased 2.4% to HK $10.14, China Resources Land Ltd. fell 3% to HK $28.60, and China Overseas Land & Investment Ltd. declined 1.4% to HK $13.50.
Earnings Optimism Likely to Support Market Rally Despite New Tariff Jitters
Barry Adams
14 Jul, 2025
New York City
Stock market indexes in New York headed lower following the threats of new tariffs over the weekend.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% as the U.S. president threatened additional tariffs of 30% on Mexico and the European Union.
Despite the ongoing negotiations, Trump's threats raise the question about the reliability of an agreement with the U.S., because new tariff threats include nations that have signed a trade agreement.
The erratic and unpredictable Trump administration's approach to international trade has left many world leaders wondering about the value of an agreement with the U.S.
Trump, as in the past, could repudiate any future trade deal at any time, rendering an agreement worthless.
This week investors in the U.S. are looking forward to the release of consumer inflation reports, and overall inflation is expected to rise to 2.6%, and core inflation is likely to rebound to 3%.
On the earnings front, banks are scheduled to kick off the earnings season, including results from JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs, and American Express.
U.S. Stock Movers
Kenvue Inc. rose 4.8% to $22.37, and the company said its chief executive, Thibaut Mongon, has resigned.
The company's board is looking to simplify its diverse product portfolio and consider its strategic alternatives.
MicroStrategy Inc. jumped 2.9% to $446.70 after Bitcoin advanced 2.2% to $121,818, trading at a new record high.
Boeing Company jumped 1.4% to $229.89 after the preliminary investigation revealed that malfunction of the fuel switch may have played a key role in Air India's fatal crash last month.
The preliminary investigation rules out the airplane's design or manufacturing-related issues.
Earnings Optimism Likely to Support Market Rally Despite New Tariff Jitters
Barry Adams
14 Jul, 2025
New York City
Stock market indexes in New York headed lower following the threats of new tariffs over the weekend.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% as the U.S. president threatened additional tariffs of 30% on Mexico and the European Union.
Despite the ongoing negotiations, Trump's threats raise the question about the reliability of an agreement with the U.S., because new tariff threats include nations that have signed a trade agreement.
The erratic and unpredictable Trump administration's approach to international trade has left many world leaders wondering about the value of an agreement with the U.S.
Trump, as in the past, could repudiate any future trade deal at any time, rendering an agreement worthless.
This week investors in the U.S. are looking forward to the release of consumer inflation reports, and overall inflation is expected to rise to 2.6%, and core inflation is likely to rebound to 3%.
On the earnings front, banks are scheduled to kick off the earnings season, including results from JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs, and American Express.
U.S. Stock Movers
Kenvue Inc. rose 4.8% to $22.37, and the company said its chief executive, Thibaut Mongon, has resigned.
The company's board is looking to simplify its diverse product portfolio and consider its strategic alternatives.
MicroStrategy Inc. jumped 2.9% to $446.70 after Bitcoin advanced 2.2% to $121,818, trading at a new record high.
Boeing Company jumped 1.4% to $229.89 after the preliminary investigation revealed that malfunction of the fuel switch may have played a key role in Air India's fatal crash last month.
The preliminary investigation rules out the airplane's design or manufacturing-related issues.
European Markets Fall As Frequent U.S. Trade Policy Changes Unnerve Investors
Bridgette Randall
14 Jul, 2025
London
European markets declined on Monday as investors weighed the impact of the latest U.S. tariff threats.
The U.S. president on Saturday threatened to impose a 30% tax on imports from the European Union and Mexico starting August 1, even as they are locked in trade negotiations.
Trump's arbitrary trade policy changes are making it impossible to finalize a trade agreement, as the U.S. president's erratic and random threats question the trustworthiness of an agreement.
Germany's finance minister called for firm action if import taxes are levied, and France's President Emmanuel Macron urged the European Union to "resolutely defend European interests."
"We remain ready to continue working towards an agreement by August 1.
At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," President of the European Commission Ursula von der Leyen responded to the latest U.S. threats.
Investors are looking forward to the release of several key economic metrics later in the week.
The UK’s inflation rate is expected to stay at 3.4%, and the jobless rate is likely to stay at a four-year high of 4.6%.
Eurozone industrial production and trade data from the Euro Area, Switzerland, Spain, and Italy are on tap as well.
On the earnings front, investors are awaiting results from Experian, Ericsson, Novartis, ABB, Atlas Copco, SAAB, Volvo, Rio Tinto, Aeroports de Paris, and ASML Holding.
Europe Stock Movers
Defense stocks advanced after the French president announced 6.5 billion in additional military spending over the next two years.
Thales SA edged up 1.7% to €255.30, Safran SA inched lower 0.3% to €278.70, Dassault Aviation increased 2% to €309.0, and Airbus SE declined 0.6% to €182.16.
Automobile stocks traded down after the U.S. president threatened to impose additional tariffs on imports from the European Union.
Volkswagen AG fell 1.8% to €92.28, Mercedes-Benz Group dropped 2% to €52.01, and Stellantis NV fell 1.1% to €8.49.