Market Update
Hang Seng Index Dropped 2% Amid Renewed Trade Tensions and Weak New Home Sales In May
Li Chen
02 Jun, 2025
Hong Kong
Stock market indexes in Hong Kong dropped at the fastest pace in two months following the weaker-than-expected home sales and renewed trade tensions with the U.S.
The Hang Seng index decreased 2% after the U.S. president accused China of violating a verbal agreement in Switzerland without offering any concrete evidence.
Mainland China's financial markets were closed to celebrate the Dragon Boat Festival, and trading is scheduled to resume on Tuesday.
Moreover, markets were on the defensive after residential property sales for the largest 100 developers rose 3.5% in May, according to data released by China Real Estate Information Corporation.
Real estate sales generally pick up in May, but the increase was sharply lower than expected amid ongoing property market malaise and weak consumer sentiment.
China Indexes and Stocks
The Hang Seng index decreased 2.0% to 22,831.01, and the mainland China markets were closed for a holiday.
The Dragon Boat Festival and Children's Day converged on the same weekend for the first time since 2014, lifting domestic travel by more than 100% for certain popular destinations.
Sands China increased 2.6% to HK $15.82, and Galaxy Entertainment advanced 1.2% to HK $33.80.
Gambling revenue in Macau jumped 5% in May to a record high since January 2020, according to local authorities.
Hang Seng Index Dropped 2% Amid Renewed Trade Tensions and Weak New Home Sales In May
Li Chen
02 Jun, 2025
Hong Kong
Stock market indexes in Hong Kong dropped at the fastest pace in two months following the weaker-than-expected home sales and renewed trade tensions with the U.S.
The Hang Seng index decreased 2% after the U.S. president accused China of violating a verbal agreement in Switzerland without offering any concrete evidence.
Mainland China's financial markets were closed to celebrate the Dragon Boat Festival, and trading is scheduled to resume on Tuesday.
Moreover, markets were on the defensive after residential property sales for the largest 100 developers rose 3.5% in May, according to data released by China Real Estate Information Corporation.
Real estate sales generally pick up in May, but the increase was sharply lower than expected amid ongoing property market malaise and weak consumer sentiment.
China Indexes and Stocks
The Hang Seng index decreased 2.0% to 22,831.01, and the mainland China markets were closed for a holiday.
The Dragon Boat Festival and Children's Day converged on the same weekend for the first time since 2014, lifting domestic travel by more than 100% for certain popular destinations.
Sands China increased 2.6% to HK $15.82, and Galaxy Entertainment advanced 1.2% to HK $33.80.
Gambling revenue in Macau jumped 5% in May to a record high since January 2020, according to local authorities.
S&P 500 and Nasdaq Face Headwinds as Tariff Uncertainty Weighs
Barry Adams
30 May, 2025
New York City
Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China.
Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts.
The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June.
Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty.
The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.4% to 5,888.56, the Nasdaq Composite edged down 0.6% to 19,067.13, and the Russell 2000 index declined 0.4% to 2,060.15.
The yield on 2-year Treasury notes edged higher to 3.95%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds advanced to 4.93%.
WTI crude oil decreased $0.11 to $60.83 a barrel, and natural gas prices edged higher by $0.02 to $3.54 a thermal unit.
Gold decreased by $19.04 to 3,299.01 an ounce, and silver edged down by $0.16 to $33.17.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.16 to 99.44 and traded at the lowest level since April 2022.
U.S. Stock Movers
Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations.
The specialty apparel retailer reported better-than-expected fiscal first quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million.
Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion.
The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications.
Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
S&P 500 and Nasdaq Face Headwinds as Tariff Uncertainty Weighs
Barry Adams
30 May, 2025
New York City
Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China.
Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts.
The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June.
Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty.
The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement.
U.S. Stock Movers
Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations.
The specialty apparel retailer reported better-than-expected fiscal first quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million.
Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion.
The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications.
Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
U.S. Stocks Face Headwinds Amid Botched Tariff Pl
Barry Adams
30 May, 2025
New York City
Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China.
Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts.
The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June.
Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty.
The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement.
U.S. Stock Movers
Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations.
The specialty apparel retailer reported better-than-expected fiscal first quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million.
Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion.
The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications.
Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales.
Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.
Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.
Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.
European Markets Scale Higher May Amid Persistent Trade and Geopolitical Uncertainties
Bridgette Randall
30 May, 2025
London
Stock market indexes across Europe struggled to advance on the final trading day of May, as investors remained defensive amid persistent uncertainties surrounding the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London flatlined as a U.S. court reinstated global tariffs imposed by the Trump administration in less than 24 hours after they were deemed illegal by another court.
The rapid shift in the U.S. trade policy and rules reinforces the world view that the current administration lacks a deeper understanding of the legalities of international trade and is deficient in professional resources to devise sound and stable policies.
World markets have lost and regained trillions of dollars since the launch of global tariffs by the U.S. president on April 2, and the turbulent U.S. trade policy over the last two months has disrupted trade with its key trading partners.
Closer to home, Spain's consumer price inflation decelerated for the third consecutive month in May to 1.9%, according to the National Statistics Institute.
The slowdown in inflation was mainly driven by a steep fall in leisure and culture prices and an additional contribution by a sharp fall in transportation prices.
Germany's retail sales struggled to advance on a monthly basis in April, as consumers avoided large-ticket items, according to the latest data available from Destatis.
Monthly retail sales declined by 1.1% in April from the upwardly revised 0.9% increase in March, marking the first decline in four months.
Over the year, retail sales increase slowed to 2.3% from 3.3% in March, and the increase was driven by a 2.3% rise in food sales and a 2.6% increase in non-food sales.
Europe Indexes and Yields
The DAX index increased by 0.2% to 23,974.84, the CAC-40 index edged lower 0.3% to 7,757.64, and the FTSE 100 index advanced 0.4% to 8,754.84.
The DAX increased 0.8% and 7.3%, the CAC-40 index decreased a fraction and rose 2.7%, and the FTSE 100 index edged up 0.5% and 3.3% for the week and in May, respectively.
The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.17%, the UK gilts moved down to 4.64%, and Italian bonds edged higher to 3.49%.
The euro decreased to $1.13; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.45 Swiss cents.
Brent crude decreased $0.13 to $63.22 a barrel, and the Dutch TTF natural gas was lower by €0.13 to €34.93 per MWh.
Europe Movers
Automobile stocks led decliners in Europe as investors estimated U.S. trade policy-related uncertainties are likely to persist.
Volkswagen Group decreased €95.28, Mercedes-Benz dropped 0.3% to €53.05, Stellantis NV added 0.4% to €9.10, and Renault SA eased 0.2% to €45.86.
Chemical companies traded lackluster amid worries that the Trump administration is looking for ways to impose additional tariffs on European shipments.
Sanofi SA dropped 5.7% to €86.73, BASF rose 1% to €43.04, Bayer AG gained 0.2% to €24.77, Novartis AG added 1.5% to CHF 94.08, and Sika AG inched up 0.8% to CHF 222.30.
European Markets Scale Higher May Amid Persistent Trade and Geopolitical Uncertainties
Bridgette Randall
30 May, 2025
London
Stock market indexes across Europe struggled to advance on the final trading day of May, as investors remained defensive amid persistent uncertainties surrounding the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London flatlined as a U.S. court reinstated global tariffs imposed by the Trump administration in less than 24 hours after they were deemed illegal by another court.
The rapid shift in the U.S. trade policy and rules reinforces the world view that the current administration lacks a deeper understanding of the legalities of international trade and is deficient in professional resources to devise sound and stable policies.
World markets have lost and regained trillions of dollars since the launch of global tariffs by the U.S. president on April 2, and the turbulent U.S. trade policy over the last two months has disrupted trade with its key trading partners.
Closer to home, Spain's consumer price inflation decelerated for the third consecutive month in May to 1.9%, according to the National Statistics Institute.
The slowdown in inflation was mainly driven by a steep fall in leisure and culture prices and an additional contribution by a sharp fall in transportation prices.
Germany's retail sales struggled to advance on a monthly basis in April, as consumers avoided large-ticket items, according to the latest data available from Destatis.
Monthly retail sales declined by 1.1% in April from the upwardly revised 0.9% increase in March, marking the first decline in four months.
Over the year, retail sales increase slowed to 2.3% from 3.3% in March, and the increase was driven by a 2.3% rise in food sales and a 2.6% increase in non-food sales.
Europe Indexes and Yields
The DAX index increased by 0.2% to 23,974.84, the CAC-40 index edged lower 0.3% to 7,757.64, and the FTSE 100 index advanced 0.4% to 8,754.84.
The DAX increased 0.8% and 7.3%, the CAC-40 index decreased a fraction and rose 2.7%, and the FTSE 100 index edged up 0.5% and 3.3% for the week and in May, respectively.
The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.17%, the UK gilts moved down to 4.64%, and Italian bonds edged higher to 3.49%.
The euro decreased to $1.13; the British pound was lower at $1.34; and the U.S. dollar was higher and traded at 82.45 Swiss cents.
Brent crude decreased $0.13 to $63.22 a barrel, and the Dutch TTF natural gas was lower by €0.13 to €34.93 per MWh.
Europe Movers
Automobile stocks led decliners in Europe as investors estimated U.S. trade policy-related uncertainties are likely to persist.
Volkswagen Group decreased €95.28, Mercedes-Benz dropped 0.3% to €53.05, Stellantis NV added 0.4% to €9.10, and Renault SA eased 0.2% to €45.86.
Chemical companies traded lackluster amid worries that the Trump administration is looking for ways to impose additional tariffs on European shipments.
Sanofi SA dropped 5.7% to €86.73, BASF rose 1% to €43.04, Bayer AG gained 0.2% to €24.77, Novartis AG added 1.5% to CHF 94.08, and Sika AG inched up 0.8% to CHF 222.30.