Market Update
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.
Japan's Bond Yields Spiked Ahead of Upper House Elections, Machine Tool Orders Eased In May
Akira Ito
14 Jul, 2025
Tokyo
Stocks in Japan fluctuated ahead of Upper House elections this week, and investors reviewed the latest U.S. tariff announcements.
The Nikkei 225 Stock Average decreased 0.2%, and the broader Topix inched higher by a fraction as investors focused on a possible increase in government spending after the Upper House elections this weekend.
The ruling coalition is likely to announce additional government programs to support household spending, which will add to already large government debt.
On July 20, 124 of the 248 members of the upper house of the National Diet are scheduled for an election, and the ruling coalition needs to win at least 50 seats to secure a majority.
Japan's 10-year bond yield edged up to 1.57% amid growing fiscal concerns ahead of the Upper House elections, and the ruling coalition is likely to support a consumption tax cut.
On the economic front, Japan's machine orders increased in May from the previous month, but the core orders declined, the Cabinet Office reported Monday.
The seasonally adjusted total value of machinery orders received by 280 manufacturers increased by 3.8% in May from the previous month.
Core orders, which exclude large and volatile orders for ships and power plants, decreased 0.6% from the previous month.
Investors reviewed the latest U.S. tariff announcements and braced for higher import duties on Japanese goods.
The U.S. president announced his plans to impose 30% tariffs on Mexico and the European Union starting August 1.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.2% to 39,498.89, and the broader Topix edged up 0.03% to 2,824.13.
Fast Retailing Co. Ltd. rebounded 1.4% to ¥44,140.0, after the stock fell as much as 7% in Friday's session.
The parent company of Uniqlo signaled that its U.S. operations are likely to suffer in the second half because of higher import duties and unpredictable U.S. trade policy.
Japan's Bond Yields Spiked Ahead of Upper House Elections, Machine Tool Orders Eased In May
Akira Ito
14 Jul, 2025
Tokyo
Stocks in Japan fluctuated ahead of Upper House elections this week, and investors reviewed the latest U.S. tariff announcements.
The Nikkei 225 Stock Average decreased 0.2%, and the broader Topix inched higher by a fraction as investors focused on a possible increase in government spending after the Upper House elections this weekend.
The ruling coalition is likely to announce additional government programs to support household spending, which will add to already large government debt.
On July 20, 124 of the 248 members of the upper house of the National Diet are scheduled for an election, and the ruling coalition needs to win at least 50 seats to secure a majority.
Japan's 10-year bond yield edged up to 1.57% amid growing fiscal concerns ahead of the Upper House elections, and the ruling coalition is likely to support a consumption tax cut.
On the economic front, Japan's machine orders increased in May from the previous month, but the core orders declined, the Cabinet Office reported Monday.
The seasonally adjusted total value of machinery orders received by 280 manufacturers increased by 3.8% in May from the previous month.
Core orders, which exclude large and volatile orders for ships and power plants, decreased 0.6% from the previous month.
Investors reviewed the latest U.S. tariff announcements and braced for higher import duties on Japanese goods.
The U.S. president announced his plans to impose 30% tariffs on Mexico and the European Union starting August 1.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.2% to 39,498.89, and the broader Topix edged up 0.03% to 2,824.13.
Fast Retailing Co. Ltd. rebounded 1.4% to ¥44,140.0, after the stock fell as much as 7% in Friday's session.
The parent company of Uniqlo signaled that its U.S. operations are likely to suffer in the second half because of higher import duties and unpredictable U.S. trade policy.
Hong Kong Indexes Wavered, China Exports and Trade Surplus Widened
Li Chen
14 Jul, 2025
Hong Kong
Stocks in China and Hong Kong fluctuated as investors focused on new U.S. tariff threats and overlooked exports data.
The Hang Seng index edged up 0.1%, and the mainland-focused CSI 300 index increased 0.2% amid new U.S. threats of higher baseline tariffs.
The U.S. president announced a new baseline tariff for all trading partners between 15% and 20% and an additional duty of as much as 35% on select trading partners.
The Trump administration has kept its highest tariff rates totaling as much as 50% for China, as the world's largest economy hopes to lower its trade deficit.
China's Exports and Trade Surplus Expanded in June
Despite the Trump administration's efforts to stem the rising flow of goods from Chinese makers, China's exports accelerated in June.
The exports surged 5.8% to $325.2 billion, imports advanced 1.1% to $210.4 billion, driving the trade surplus higher by 14% to $114.8 billion, the National Bureau of Statistics reported Monday.
Exports in June accelerated from a 4.8% annual increase in the previous month.
China's trade surplus widened to $114.8 billion from $98.9 billion a year ago, and the trade surplus with the U.S. expanded to $26.6 billion from $18 billion in May.
Over the first half, despite the brewing trade tensions with the U.S., China's exports have increased 5.9% to $1.8 trillion and imports contracted 3.9% to $1.2 trillion.
In the six-month period to June, China's trade surplus widened to $586 billion, driven by a surge in exports of electric vehicles, electronic goods, and household appliances.
China Indexes and Stocks
The Hang Seng Index increased 0.1% to 24,166.03, and the mainland-focused CSI 300 index edged up 0.2% to 4,023.75.
Internet platform operators and property stocks dominated trading.
Alibaba Group Holding rose 1.3% to HK $106.60, Meituan edged up 0.6% to HK $120.70, and Tencent Holding increased 0.5% to HK $498.80.
China Vanke declined 0.5% to HK $5.30, Longfor Group Holdings gained 0.4% to HK $10.46, and Sun Hung Kai Properties fell 0.9% to HK $89.0.
Hong Kong Indexes Wavered, China Exports and Trade Surplus Widened
Li Chen
14 Jul, 2025
Hong Kong
Stocks in China and Hong Kong fluctuated as investors focused on new U.S. tariff threats and overlooked exports data.
The Hang Seng index edged up 0.1%, and the mainland-focused CSI 300 index increased 0.2% amid new U.S. threats of higher baseline tariffs.
The U.S. president announced a new baseline tariff for all trading partners between 15% and 20% and an additional duty of as much as 35% on select trading partners.
The Trump administration has kept its highest tariff rates totaling as much as 50% for China, as the world's largest economy hopes to lower its trade deficit.
China's Exports and Trade Surplus Expanded in June
Despite the Trump administration's efforts to stem the rising flow of goods from Chinese makers, China's exports accelerated in June.
The exports surged 5.8% to $325.2 billion, imports advanced 1.1% to $210.4 billion, driving the trade surplus higher by 14% to $114.8 billion, the National Bureau of Statistics reported Monday.
Exports in June accelerated from a 4.8% annual increase in the previous month.
China's trade surplus widened to $114.8 billion from $98.9 billion a year ago, and the trade surplus with the U.S. expanded to $26.6 billion from $18 billion in May.
Over the first half, despite the brewing trade tensions with the U.S., China's exports have increased 5.9% to $1.8 trillion and imports contracted 3.9% to $1.2 trillion.
In the six-month period to June, China's trade surplus widened to $586 billion, driven by a surge in exports of electric vehicles, electronic goods, and household appliances.
China Indexes and Stocks
The Hang Seng Index increased 0.1% to 24,166.03, and the mainland-focused CSI 300 index edged up 0.2% to 4,023.75.
Internet platform operators and property stocks dominated trading.
Alibaba Group Holding rose 1.3% to HK $106.60, Meituan edged up 0.6% to HK $120.70, and Tencent Holding increased 0.5% to HK $498.80.
China Vanke declined 0.5% to HK $5.30, Longfor Group Holdings gained 0.4% to HK $10.46, and Sun Hung Kai Properties fell 0.9% to HK $89.0.
Wall Street Indexes Dropped As Escalating Tariff War Reignite Inflation Worries
Barry Adams
11 Jul, 2025
New York City
Stock market indexes in New York turned lower amid escalating trade tensions and renewed worries about the tariff-linked inflation and its impact on long-term interest rates.
The S&P 500 index decreased 0.2%, and the tech-focused Nasdaq Composite declined 0.1%.
Benchmark indexes in New York faced headwinds after the U.S. president announced a 35% tariff on Canada and blanket tariffs between 15% and 20% on all other trade partners.
The Trump administration's announcements took investors by surprise, just as investors and businesses were adjusting to the possible rate of 10%.
The average tariffs paid by the U.S. importers and businesses are near the historic low of 3%, and the sharp escalation in import taxes is likely to fuel inflation.
So far businesses have not passed on higher tariffs to consumers, as companies work off inventories and look for ways to absorb the higher cost of doing business.
But in the months ahead, businesses will be forced to pass on at least some of the higher import taxes to consumers, which will stoke inflation and force the Federal Reserve to keep higher rates for longer.
Imports from China are facing a tariff rate of 40%, those from Japan are likely to be taxed at 25%, and those from the European Union, Mexico, and Canada are expected to be taxed between 15% and 35%.
U.S. Stock Movers
Levi Strauss & Company jumped 8.6% to $21.43 after the denim maker lifted its sales outlook and reported better-than-expected results in its latest quarter.
PriceSmart Inc. advanced 7.6% to $110.50, and the membership-based warehouse club operator reported stronger-than-expected revenue and earnings for the latest quarter.
WD-40 Inc edged up 0.4% to $225.75, and the company reported weaker-than-expected revenue, but earnings surpassed expectations.
Wall Street Indexes Dropped As Escalating Tariff War Reignite Inflation Worries
Barry Adams
11 Jul, 2025
New York City
Stock market indexes in New York turned lower amid escalating trade tensions and renewed worries about the tariff-linked inflation and its impact on long-term interest rates.
The S&P 500 index decreased 0.2%, and the tech-focused Nasdaq Composite declined 0.1%.
Benchmark indexes in New York faced headwinds after the U.S. president announced a 35% tariff on Canada and blanket tariffs between 15% and 20% on all other trade partners.
The Trump administration's announcements took investors by surprise, just as investors and businesses were adjusting to the possible rate of 10%.
The average tariffs paid by the U.S. importers and businesses are near the historic low of 3%, and the sharp escalation in import taxes is likely to fuel inflation.
So far businesses have not passed on higher tariffs to consumers, as companies work off inventories and look for ways to absorb the higher cost of doing business.
But in the months ahead, businesses will be forced to pass on at least some of the higher import taxes to consumers, which will stoke inflation and force the Federal Reserve to keep higher rates for longer.
Imports from China are facing a tariff rate of 40%, those from Japan are likely to be taxed at 25%, and those from the European Union, Mexico, and Canada are expected to be taxed between 15% and 35%.
U.S. Stock Movers
Levi Strauss & Company jumped 8.6% to $21.43 after the denim maker lifted its sales outlook and reported better-than-expected results in its latest quarter.
PriceSmart Inc. advanced 7.6% to $110.50, and the membership-based warehouse club operator reported stronger-than-expected revenue and earnings for the latest quarter.
WD-40 The company edged up 0.4% to $225.75, and the company reported weaker-than-expected revenue, but earnings surpassed expectations.
Renewed U.S. Tariff Tensions Drag Down European Markets
Bridgette Randall
11 Jul, 2025
London
European markets faced headwinds amid renewed tariff threats, and investors reviewed the latest corporate results.
Benchmark indexes in Frankfurt, Milan, Paris, and London dropped between 0.5% and 1.0% amid worries that the volatile U.S. trade policy is likely to negatively impact corporate results.
The U.S. president threatened tariff rates of 25% on Japan and 35% on Canada and suggested blanket tariffs between 15% and 20% on imports from most trading partners.
The erratic and arbitrary tariffs announced by the White House lacked details about the implementation plan from August 1.
The chaotic U.S. trade policy has forced businesses to forego investment plans and energized nations to strike non-U.S. trade deals.
Europe Stock Movers
BP plc increased 2.4% to 398.06 pence, despite the UK-based energy company estimating weaker prices for oil and gas in the second quarter compared to the previous quarter.
Crude oil revenues are likely to fall between $0.6 billion and $0.8 billion, and natural gas revenues are likely to shrink between $0.1 billion and $0.3 billion, according to a trading update released by the company.
However, upstream production is likely to be "higher than previously estimated" in the second quarter for the oil segment and "slightly higher" in the natural gas and low-carbon energy segment.
The company added that the Brent crude price averaged $67.88 per barrel in the second quarter compared to $75.73 in the first quarter.
US gas Henry Hub first-of-month index averaged $3.44/mmBtu in the second quarter compared to $3.65/mmBtu in the first quarter.
BP guided the average refining margin in the second quarter to expand to $21.10 per barrel from $15.2 a barrel in the previous quarter.
Brunello Cucinelli SpA decreased 1.9% to €107.15 after the Italian luxury fashion company reported revenue in the first half increased in double digits.
The fashion company's revenue in the first half increased 10.7%, driven by an increase of 8.7% in the Americas, 10% in Europe, and 12.5% in Asia.
Revenue in the first half rose to €684.1 million from €620.7 million in the year ago.
Turnover in Europe advanced 10% to €243.1 million and accounted for 35.5% of total sales; in the Americas, it advanced 8.7% to €245.2 million, or 35.9% of total sales; and in Asia, it advanced 12.5% to €195.7 million, or 28.7% of total sales.
Renewed U.S. Tariff Tensions Drag Down European Markets
Bridgette Randall
11 Jul, 2025
London
European markets faced headwinds amid renewed tariff threats, and investors reviewed the latest corporate results.
Benchmark indexes in Frankfurt, Milan, Paris, and London dropped between 0.5% and 1.0% amid worries that the volatile U.S. trade policy is likely to negatively impact corporate results.
The U.S. president threatened tariff rates of 25% on Japan and 35% on Canada and suggested blanket tariffs between 15% and 20% on imports from most trading partners.
The erratic and arbitrary tariffs announced by the White House lacked details about the implementation plan from August 1.
The chaotic U.S. trade policy has forced businesses to forego investment plans and energized nations to strike non-U.S. trade deals.
Europe Stock Movers
BP plc increased 2.4% to 398.06 pence, despite the UK-based energy company estimating weaker prices for oil and gas in the second quarter compared to the previous quarter.
Crude oil revenues are likely to fall between $0.6 billion and $0.8 billion, and natural gas revenues are likely to shrink between $0.1 billion and $0.3 billion, according to a trading update released by the company.
However, upstream production is likely to be "higher than previously estimated" in the second quarter for the oil segment and "slightly higher" in the natural gas and low-carbon energy segment.
The company added that the Brent crude price averaged $67.88 per barrel in the second quarter compared to $75.73 in the first quarter.
US gas Henry Hub first-of-month index averaged $3.44/mmBtu in the second quarter compared to $3.65/mmBtu in the first quarter.
BP guided the average refining margin in the second quarter to expand to $21.10 per barrel from $15.2 a barrel in the previous quarter.
Brunello Cucinelli SpA decreased 1.9% to €107.15 after the Italian luxury fashion company reported revenue in the first half increased in double digits.
The fashion company's revenue in the first half increased 10.7%, driven by an increase of 8.7% in the Americas, 10% in Europe, and 12.5% in Asia.
Revenue in the first half rose to €684.1 million from €620.7 million in the year ago.
Turnover in Europe advanced 10% to €243.1 million and accounted for 35.5% of total sales; in the Americas, it advanced 8.7% to €245.2 million, or 35.9% of total sales; and in Asia, it advanced 12.5% to €195.7 million, or 28.7% of total sales.
Stock Movers: Levi Strauss, WD-40, PriceSmart
Scott Peters
11 Jul, 2025
New York City
Levi Strauss & Co. increased 1.7% to $19.73 after the apparel and jeans company reported nearly a four-fold increase in quarterly earnings.
Consolidated revenue in the June quarter increased to $1.4 billion from $1.3 billion, net income jumped to $67 million from $18 million, and diluted earnings per share rose to 17 cents from 4 cents a year ago.
For the six-month period, revenue edged higher to $3 billion from $2.8 billion, net income soared to $202 million from $7.3 million, and diluted earnings per share advanced to 51 cents from 2 cents a year ago.
Geographically, in the Americas, net revenues increased 5% on a reported basis and 9% on an organic basis.
Organic revenue in the U.S. grew 7%, and the Levi’s® brand sales were up 9% globally.
The company's annual revenue guidance is based on the U.S. tariff rate of 30% on imports from China and 10% for the rest of the world for the remainder of the year and excludes the discontinued operations of Dockers.
The company revised higher annual revenue growth to between 1% and 2%, up from the previous estimate of a decline between 1% and 2%.
The organic net revenue growth range was raised to an increase between 4.5% and 5.5%, up from the previous range between 3.5% and 4.5%.
Gross margin expansion was revised to 80 basis points, lower than the previous estimate of up to 100 basis points, due to a 20-basis-point impact from tariffs, including cost control measures.
The company revised its adjusted diluted earnings per share higher by 5 cents to between $1.25 and $1.30, up from the previously estimated range between $1.20 and $1.25.
The company returned approximately $51 million to shareholders through dividends in the second quarter, an 8% increase from a year ago, representing a dividend of $0.13 per share.
As of June 1, the company had $560 million remaining under its current share repurchase authorization.
The company declared an increase in the dividend to $0.14 per share for the third quarter, totaling approximately $55 million, payable on August 8.
WD-40 Co. declined 2.1% to $224.90, and the maintenance products maker reported a 5% rise in its earnings in the fiscal third quarter ending in June.
Consolidated revenue in the quarter increased to $156.9 million from $155 million, net income inched higher to $21 million from $19.8 million, and diluted earnings per share rose to $1.54 from $1.46 a year ago.
For the six-month period, revenue edged higher to $456.5 billion from $434.6 billion, net income soared to $69.8 million from $52.9 million, and diluted earnings per share advanced to $5.13 from $3.88 a year ago.
The company guided full-year net sales growth to narrow to between 6% and 9%, or $600 million and $620 million, after adjusting for estimated translation impacts of foreign currency.
Gross margin for the full year continues to be expected to be between 55% and 56%.
The company estimated the income tax rate to be around 22.5%.
The diluted earnings per share estimate was revised higher to between $5.30 and $5.60 based on an estimated 13.5 million weighted average shares outstanding.
This new range reflects anticipated growth of between 12% and 18% compared to 2024.
The company’s board of directors declared a regular quarterly dividend of $0.94 per share payable on July 31 to stockholders of record on July 18.
PriceSmart Inc. increased by 0.7% to $107.70 after the warehouse club operator reported an 8% rise in its earnings in the fiscal third quarter ending in June.
Consolidated revenue in the June quarter inched higher to $1.3 billion from $1.2 billion, net income increased to $35.1 million from $32.5 million, and diluted earnings per share rose to $1.14 from $1.08 a year ago.
For the nine-month period, revenue advanced to $3.8 billion from $3.6 billion, net income soared to $166.3 million from $109.8 million, and diluted earnings per share edged higher to $3.80 from $3.62 a year ago.