Market Update
China Markets Approached 3-Month Highs Amid Protracted Tariff Uncertainty
Li Chen
08 Jul, 2025
Hong Kong
Stock market indexes in China and Hong Kong rebounded ahead of the release of key inflation reports on Wednesday.
The Hang Seng Index edged up 0.8%, and the mainland-focused CSI 300 index advanced nearly 1% as investors reviewed the latest iteration of change in the U.S. trade policy.
The Trump administration delayed the start of additional tariffs on 14 trading partners but threatened to impose a 25% import tax on Japan and South Korea in the event of a lack of an agreement.
Investors bid up stocks, hoping that Donald Trump will back down at the last minute and agree on a lower rate of tariff, as in the past.
The Hang Seng index traded near a three-month high and recouped all the losses after the Trump administration launched a global tariff war to finance tax cuts for the wealthy.
The constant shift in the U.S. trade policy and ongoing uncertainty have wreaked havoc on small and medium-sized manufacturing companies in China and Asia, pushing thousands of U.S. independent retailers and businesses to the brink of collapse.
At least three million jobs are impacted in China, Vietnam, and Japan, and as many as 95,000 U.S. small businesses are likely to face closure this year.
Moreover, U.S. consumers are facing higher prices as most businesses pass the cost of tariffs to consumers.
The average U.S. tariff on imported goods across all industries is likely to jump from less than 5% to close to 20%, which could raise as much as $150 billion for the U.S. federal government, too little to make a dent in the annual fiscal deficit.
China's overall consumer price inflation is expected to inch higher by 0.1%, and the producer price is likely to extend its decline for the 33rd month in a row and fall more than 3%.
The National Bureau of Statistics is scheduled to release two inflation reports on Wednesday.
China Indexes and Stocks
The Hang Seng index increased 0.8% to 24,098.71, and the mainland-focused CSI 300 index advanced 0.9% to 3,994.36.
Baidu Inc. jumped 3.3% to HK $88.50, Xiaomi Corp. gained 2.1% to HK $58.55, and Kuaishou Technology jumped 3.4% to HK $65.20.
Alibaba Group Holding advanced 1% to HK $106.50, Tencent Holdings Ltd. decreased 0.2% to HK $501.0, and Meituan edged up 0.2% to HK $119.60.
China Markets Approached 3-Month Highs Amid Protracted Tariff Uncertainty
Li Chen
08 Jul, 2025
Hong Kong
Stock market indexes in China and Hong Kong rebounded ahead of the release of key inflation reports on Wednesday.
The Hang Seng Index edged up 0.8%, and the mainland-focused CSI 300 index advanced nearly 1% as investors reviewed the latest iteration of change in the U.S. trade policy.
The Trump administration delayed the start of additional tariffs on 14 trading partners but threatened to impose a 25% import tax on Japan and South Korea in the event of a lack of an agreement.
Investors bid up stocks, hoping that Donald Trump will back down at the last minute and agree on a lower rate of tariff, as in the past.
The Hang Seng index traded near a three-month high and recouped all the losses after the Trump administration launched a global tariff war to finance tax cuts for the wealthy.
The constant shift in the U.S. trade policy and ongoing uncertainty have wreaked havoc on small and medium-sized manufacturing companies in China and Asia, pushing thousands of U.S. independent retailers and businesses to the brink of collapse.
At least three million jobs are impacted in China, Vietnam, and Japan, and as many as 95,000 U.S. small businesses are likely to face closure this year.
Moreover, U.S. consumers are facing higher prices as most businesses pass the cost of tariffs to consumers.
The average U.S. tariff on imported goods across all industries is likely to jump from less than 5% to close to 20%, which could raise as much as $150 billion for the U.S. federal government, too little to make a dent in the annual fiscal deficit.
China's overall consumer price inflation is expected to inch higher by 0.1%, and the producer price is likely to extend its decline for the 33rd month in a row and fall more than 3%.
The National Bureau of Statistics is scheduled to release two inflation reports on Wednesday.
China Indexes and Stocks
The Hang Seng index increased 0.8% to 24,098.71, and the mainland-focused CSI 300 index advanced 0.9% to 3,994.36.
Baidu Inc. jumped 3.3% to HK $88.50, Xiaomi Corp. gained 2.1% to HK $58.55, and Kuaishou Technology jumped 3.4% to HK $65.20.
Alibaba Group Holding advanced 1% to HK $106.50, Tencent Holdings Ltd. decreased 0.2% to HK $501.0, and Meituan edged up 0.2% to HK $119.60.
Trump Administration Postpones Severe Tariffs Deadline Again, Wall Street Stocks Turned Lower
Barry Adams
07 Jul, 2025
New York City
Stock market indexes wavered around the flatline as investors reviewed yet another change in tariff policy.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite eased 0.5% after the Trump administration struggled to sign key deals before the self-imposed deadline on July 9.
The U.S. president postponed the deadline to August 1, as key trading partners resisted the administration's plans for severe import duties.
The Trump administration led investors to believe that key trading partners—China, Mexico, Canada, the European Union, and Japan—are eager to accept aggressive tariffs to gain access to the largest market in the world.
However, the administration's strong-arm tactics have so far yielded few results and caused severe business disruptions that are likely to drive at least 100,000 small firms out of business.
Last week, Wall Street indexes extended two months of gains to new record highs, but markets in Europe and Asia struggled after a week of choppy trading.
Optimism prevailed amid expectations that stability will return to international trade, and key U.S. trade partners will finalize agreements ending months of uncertainties and chaos unleashed by the Trump administration.
In the week ahead, investors in the U.S. are looking forward to the release of the consumer inflation expectation survey, monthly wholesale inventories, and jobless claims data.
The Fed’s minutes and balance sheet announcement and the monthly budget statement are also on schedule.
On the earnings front, markets expect results from Costco, Delta Air Lines, Levi Strauss, PriceSmart, WD-40, First Bancshares, AEHR Test Systems, Conagra Brands, and Progressive Corp.
U.S. Movers
Tesla Inc. dropped 7.8% to $290.84, and the company's chief executive said he plans to start a new political party, which will further divide his attention from the business.
Trump Administration Postpones Severe Tariffs Deadline Again, Wall Street Stocks Turned
Barry Adams
07 Jul, 2025
New York City
Stock market indexes wavered around the flatline as investors reviewed yet another change in tariff policy.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite eased 0.5% after the Trump administration struggled to sign key deals before the self-imposed deadline on July 9.
The U.S. president postponed the deadline to August 1, as key trading partners resisted the administration's plans for severe import duties.
The Trump administration led investors to believe that key trading partners—China, Mexico, Canada, the European Union, and Japan—are eager to accept aggressive tariffs to gain access to the largest market in the world.
However, the administration's strong-arm tactics have so far yielded few results and caused severe business disruptions that are likely to drive at least 100,000 small firms out of business.
Last week, Wall Street indexes extended two months of gains to new record highs, but markets in Europe and Asia struggled after a week of choppy trading.
Optimism prevailed amid expectations that stability will return to international trade, and key U.S. trade partners will finalize agreements ending months of uncertainties and chaos unleashed by the Trump administration.
In the week ahead, investors in the U.S. are looking forward to the release of the consumer inflation expectation survey, monthly wholesale inventories, and jobless claims data.
The Fed’s minutes and balance sheet announcement and the monthly budget statement are also on schedule.
On the earnings front, markets expect results from Costco, Delta Air Lines, Levi Strauss, PriceSmart, WD-40, First Bancshares, AEHR Test Systems, Conagra Brands, and Progressive Corp.
U.S. Movers
Tesla Inc. dropped 7.8% to $290.84, and the company's chief executive said he plans to start a new political party, which will further divide his attention from the business.
Germany's Industrial Output Rebounded In May, UK's Home Price Index Increase Moderated In June
Bridgette Randall
07 Jul, 2025
London
European markets lacked direction on Monday as investors reassessed the bilateral trade negotiations between the European Union and the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline after the Trump administration pushed back the upcoming deadline to August 1 from July 9.
The European Union is likely to strike a limited trade framework deal with the U.S. and delay detailed discussions at the industry level as far back as possible.
Trade negotiators in Brussels are hoping to avert high tariffs on automobiles, food products, and pharmaceuticals while keeping the high barriers intact for U.S. food and agriculture products.
Germany's Industrial Production Rebounded In May
On the economic front, Germany's industrial production advanced 1% in May from a year ago, reversing a decrease of 2.1% in April, the Federal Statistics Office reported Monday.
The manufacturing sector rebound was driven by a higher demand in pharmaceutical and automotive sectors, but the 3.9% contraction in the construction sector and the 1.8% decline in energy-intensive industry kept the gain in check.
Sweden's CPI Accelerated in June
Sweden's annual consumer price inflation accelerated to 0.8% in June from 0.2% in May, according to Statistics Sweden.
The overall inflation jumped to a four-month high but well below the 2% target rate set by the Riksbank.
UK Home Price Index Rises at Modest Pace
The UK's home price index rose at the slowest pace in eleven months, but home prices are expected to continue to rise at the modest pace in the second half.
The Halifax House Price Index in the UK increased 2.5% from a year ago in June, slower than the upwardly revised 2.5% in May.
Home prices stalled in June, and the average home price was £296,665 compared to £296,782 in May.
"With markets pricing in two more rate cuts from the Bank of England by year-end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year”, said Amanda Bryden, Head of Mortgages, Halifax.
Europe Movers
Allianz SE increased 0.9% to €344.60, Münchener Re Group added 0.7% to €561.80, and Commerzbank added 0.5% to €28.22.
Rheinmetall AG added 0.3% to €1,759.50, MTU Aero Engines gained 1% to €374.80, Airbus SE increased 0.7% to €176.64, and Rolls-Royce Holdings plc advanced 0.9% to 971.20 pence.
LVMH decreased 0.5% to €475.30, Kering SA dropped 0.7% to €196.72, Hermes International SCA gained 0.4% to €2,355.0, and Brunello Cucinelli SpA edged down 0.4% to €107.30.
Germany's Industrial Output Rebounded In May, UK's Home Price Index Increase Moderated In June
Bridgette Randall
07 Jul, 2025
London
European markets lacked direction on Monday as investors reassessed the bilateral trade negotiations between the European Union and the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline after the Trump administration pushed back the upcoming deadline to August 1 from July 9.
The European Union is likely to strike a limited trade framework deal with the U.S. and delay detailed discussions at the industry level as far back as possible.
Trade negotiators in Brussels are hoping to avert high tariffs on automobiles, food products, and pharmaceuticals while keeping the high barriers intact for U.S. food and agriculture products.
Germany's Industrial Production Rebounded In May
On the economic front, Germany's industrial production advanced 1% in May from a year ago, reversing a decrease of 2.1% in April, the Federal Statistics Office reported Monday.
The manufacturing sector rebound was driven by a higher demand in pharmaceutical and automotive sectors, but the 3.9% contraction in the construction sector and the 1.8% decline in energy-intensive industry kept the gain in check.
Sweden's CPI Accelerated in June
Sweden's annual consumer price inflation accelerated to 0.8% in June from 0.2% in May, according to Statistics Sweden.
The overall inflation jumped to a four-month high but well below the 2% target rate set by the Riksbank.
UK Home Price Index Rises at Modest Pace
The UK's home price index rose at the slowest pace in eleven months, but home prices are expected to continue to rise at the modest pace in the second half.
The Halifax House Price Index in the UK increased 2.5% from a year ago in June, slower than the upwardly revised 2.5% in May.
Home prices stalled in June, and the average home price was £296,665 compared to £296,782 in May.
"With markets pricing in two more rate cuts from the Bank of England by year-end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year”, said Amanda Bryden, Head of Mortgages, Halifax.
Europe Movers
Allianz SE increased 0.9% to €344.60, Münchener Re Group added 0.7% to €561.80, and Commerzbank added 0.5% to €28.22.
Rheinmetall AG added 0.3% to €1,759.50, MTU Aero Engines gained 1% to €374.80, Airbus SE increased 0.7% to €176.64, and Rolls-Royce Holdings plc advanced 0.9% to 971.20 pence.
LVMH decreased 0.5% to €475.30, Kering SA dropped 0.7% to €196.72, Hermes International SCA gained 0.4% to €2,355.0, and Brunello Cucinelli SpA edged down 0.4% to €107.30.
Japan's Nominal Wage Growth Decelerated In May, Nikkei 225 Eased Amid Trade Worries
Akira Ito
07 Jul, 2025
Tokyo
Stocks in Japan faced headwinds ahead of the looming U.S. trade deadline and a weak rise in nominal wages.
The Nikkei 225 Index fell 0.6%, and the broader Topix eased 0.7% after the U.S. ramped up pressure on Japan to accept aggressive tariffs on vehicles and parts.
The unpredictable Trump administration set August 1 as the deadline for the start of an additional 25% tariff on Japanese automobile imports, but the level of the tariff could change in the weeks ahead.
In addition, Japan's Prime Minister Shigeru Ishiba reiterated that Japan is not likely to "easily compromise" with Washington's proposal of up to 35% tariffs on Japanese imports.
On the economic front, Japan's nominal wages rose at the slowest pace in three months, according to the Ministry of Health, Labour, and Welfare.
Japan's nominal wages rose at an annual pace of 1% in May, marking the third consecutive month of deceleration and falling to the lowest level since March 2024.
Real wages, adjusted for inflation, decreased 2.9%, extending the decline in purchasing power for the fifth month in a row and falling at the fastest pace in nearly two years.
Smaller companies are still struggling to pass higher wages, following the increase of more than 5% agreed upon between large companies and labor unions.
The string of weak nominal wage increases stoked the fears that Japan's economy may face an uphill climb to register positive growth in the current fiscal year.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.6% to 39,566.05, and the broader Topix fell 0.7% to 2,810.13.
Mitsubishi UFJ Financial Holding declined 2.4% to ¥1,965.50, Sumitomo Mitsui Financial Holding decreased 2.1% to ¥3,614.0, and Mizuho Financial Group fell 2.4% to ¥3,948.0.
Seven & I Holdings decreased 0.3% to ¥2,242.50, Fast Retailing Co. Ltd. declined 0.1% to ¥47,610.0, Takashimaya Co. Ltd. increased 0.4% to ¥1,098.50, and Aeon Co. Ltd. advanced 1.8% to ¥4,561.0.
Japan's Nominal Wage Growth Decelerated In May, Nikkei 225 Eased Amid Trade Worries
Akira Ito
07 Jul, 2025
Tokyo
Stocks in Japan faced headwinds ahead of the looming U.S. trade deadline and a weak rise in nominal wages.
The Nikkei 225 Index fell 0.6%, and the broader Topix eased 0.7% after the U.S. ramped up pressure on Japan to accept aggressive tariffs on vehicles and parts.
The unpredictable Trump administration set August 1 as the deadline for the start of an additional 25% tariff on Japanese automobile imports, but the level of the tariff could change in the weeks ahead.
In addition, Japan's Prime Minister Shigeru Ishiba reiterated that Japan is not likely to "easily compromise" with Washington's proposal of up to 35% tariffs on Japanese imports.
On the economic front, Japan's nominal wages rose at the slowest pace in three months, according to the Ministry of Health, Labour, and Welfare.
Japan's nominal wages rose at an annual pace of 1% in May, marking the third consecutive month of deceleration and falling to the lowest level since March 2024.
Real wages, adjusted for inflation, decreased 2.9%, extending the decline in purchasing power for the fifth month in a row and falling at the fastest pace in nearly two years.
Smaller companies are still struggling to pass higher wages, following the increase of more than 5% agreed upon between large companies and labor unions.
The string of weak nominal wage increases stoked the fears that Japan's economy may face an uphill climb to register positive growth in the current fiscal year.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.6% to 39,566.05, and the broader Topix fell 0.7% to 2,810.13.
Mitsubishi UFJ Financial Holding declined 2.4% to ¥1,965.50, Sumitomo Mitsui Financial Holding decreased 2.1% to ¥3,614.0, and Mizuho Financial Group fell 2.4% to ¥3,948.0.
Seven & I Holdings decreased 0.3% to ¥2,242.50, Fast Retailing Co. Ltd. declined 0.1% to ¥47,610.0, Takashimaya Co. Ltd. increased 0.4% to ¥1,098.50, and Aeon Co. Ltd. advanced 1.8% to ¥4,561.0.
China Indexes Face Reality of High U.S. Tariffs
Li Chen
07 Jul, 2025
Hong Kong
China stocks faced selling pressures amid trade uncertainty and lack of catalysts.
The Hang Seng index decreased 0.5%, and the mainland-focused CSI 300 index fell 0.6% ahead of the looming self-imposed deadline by the U.S. for its global trade partners.
Despite bold claims by the Trump administration, the U.S. is struggling to strike trade deals with China, the European Union, Canada, South Korea, and Mexico before the July 9 deadline.
Trade negotiations with China have stalled for three weeks as the U.S. looks for at least a 40% duty on direct imports from China and demands duty-free access for agriculture exports.
The U.S. and China have agreed to an early August deadline, and both countries have taken tentative steps to cool down tensions.
China has lifted its restrictions on rare earth shipments, and the U.S. has eased its ban on the sale of design software for advanced chips.
Moreover, the latest trade framework between the U.S. and Vietnam called for 20% tariffs on goods shipments and a 40% rate on transshipment.
The Trump administration has targeted shipments from China in its negotiations with Mexico, Cambodia, Thailand, and Malaysia, hoping to further fragment international supply chains away from the second-largest economy.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,808.91, and the CSI 300 index fell 0.6% to 3,958.86.
Alibaba Group Holding decreased 0.3% to HK $104.80, Tencent Holdings rose 0.3% to HK $500.50, and Meituan eased 0.4% to HK $117.90.
Export-sensitive companies declined following the trade uncertainties and worries about the excess capacity in the solar industry.
Xinyi Solar Holdings Ltd. edged down 4.2% to HK $2.76, JA Solar Technology dropped 1% to ¥10.33, and Trina Solar fell 1% to ¥14.64. LONGi Green Energy Technology decreased 0.7% to ¥15.46.
FWD Group Holdings increased 1% to HK $38.40, and the insurance company completed its listing on the Hong Kong Stock Exchange.
The company sold 9.13 million shares at a price of HK $38.0 per share in an initial public offering and raised HK $3.4 billion.
China Indexes Face Reality of High U.S. Tariffs
Li Chen
07 Jul, 2025
Hong Kong
China stocks faced selling pressures amid trade uncertainty and lack of catalysts.
The Hang Seng index decreased 0.5%, and the mainland-focused CSI 300 index fell 0.6% ahead of the looming self-imposed deadline by the U.S. for its global trade partners.
Despite bold claims by the Trump administration, the U.S. is struggling to strike trade deals with China, the European Union, Canada, South Korea, and Mexico before the July 9 deadline.
Trade negotiations with China have stalled for three weeks as the U.S. looks for at least a 40% duty on direct imports from China and demands duty-free access for agriculture exports.
The U.S. and China have agreed to an early August deadline, and both countries have taken tentative steps to cool down tensions.
China has lifted its restrictions on rare earth shipments, and the U.S. has eased its ban on the sale of design software for advanced chips.
Moreover, the latest trade framework between the U.S. and Vietnam called for 20% tariffs on goods shipments and a 40% rate on transshipment.
The Trump administration has targeted shipments from China in its negotiations with Mexico, Cambodia, Thailand, and Malaysia, hoping to further fragment international supply chains away from the second-largest economy.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,808.91, and the CSI 300 index fell 0.6% to 3,958.86.
Alibaba Group Holding decreased 0.3% to HK $104.80, Tencent Holdings rose 0.3% to HK $500.50, and Meituan eased 0.4% to HK $117.90.
Export-sensitive companies declined following the trade uncertainties and worries about the excess capacity in the solar industry.
Xinyi Solar Holdings Ltd. edged down 4.2% to HK $2.76, JA Solar Technology dropped 1% to ¥10.33, and Trina Solar fell 1% to ¥14.64. LONGi Green Energy Technology decreased 0.7% to ¥15.46.
FWD Group Holdings increased 1% to HK $38.40, and the insurance company completed its listing on the Hong Kong Stock Exchange.
The company sold 9.13 million shares at a price of HK $38.0 per share in an initial public offering and raised HK $3.4 billion.
European Markets Turned Negative Amid Uncertain U.S. Trade Outlook
Bridgette Randall
04 Jul, 2025
London
European markets lacked direction on Friday after a week of choppy trading amid growing uncertainty about the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower, as the European Union trade negotiators signaled a lack of progress in trade talks with the U.S.
The European Union is looking to avoid steep tariffs of 25% on vehicles and parts and additional duties on steel, aluminum, and food and beverage products.
Separately, China's Commerce Ministry said it plans to impose a 34.9% duty on EU brandy imports starting July 5.
On the economic front, Germany's factory orders adjusted for inflation rose 5.3% from a year ago in May, according to the latest data released by the Federal Statistical Office.
On a monthly basis, new manufacturing orders decreased 1.4% and reversed the upwardly revised 1.6% increase in the previous month.
Excluding large orders, new orders declined 3.1% from the previous month.
In a less volatile three-month comparison, new orders in the three months to May advanced 2.1% from the previous three months; excluding large orders, they rose by 1.9%.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 23,855.18, the CAC-40 index edged lower 0.8% to 7,693.87, and the FTSE 100 index declined 0.2% to 8,801.82.
The yield on 10-year German bonds inched lower to 2.54%, French bonds decreased to 3.25%, the UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.45%.
The euro increased to $1.18, the British pound was lower at $1.37, and the U.S. dollar was lower and traded at 79.36 Swiss cents.
Brent crude decreased $0.09 to $68.55 a barrel, and the Dutch TTF natural gas was higher by €0.22 to €33.93 per MWh.
Europe Movers
Rheinmetall AG advanced 0.8% to €1,711.50, Safran SA declined 0.8% to €268.10, BAE Systems fell 0.3% to 1,871.0, Rolls-Royce Holdings PLC edged up 0.1% to 955.0 pence, and Airbus SE decreased 0.9% to €175.16.
HSBC Holdings declined 0.1% to 883.70 pence, Barclays PLC fell 0.3% to 331.55 pence, Credit Agricole SA decreased 0.9% to €16.01, and UniCredit SpA dropped 0.7% to €56.70.
European Markets Remained Optimistic Despite Uncertain U.S. Trade Outlook
Bridgette Randall
04 Jul, 2025
London
European markets lacked direction on Friday after a week of choppy trading amid growing uncertainty about the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged lower, as the European Union trade negotiators signaled a lack of progress in trade talks with the U.S.
The European Union is looking to avoid steep tariffs of 25% on vehicles and parts and additional duties on steel, aluminum, and food and beverage products.
Separately, China's Commerce Ministry said it plans to impose a 34.9% duty on EU brandy imports starting July 5.
On the economic front, Germany's factory orders adjusted for inflation rose 5.3% from a year ago in May, according to the latest data released by the Federal Statistical Office.
On a monthly basis, new manufacturing orders decreased 1.4% and reversed the upwardly revised 1.6% increase in the previous month.
Excluding large orders, new orders declined 3.1% from the previous month.
In a less volatile three-month comparison, new orders in the three months to May advanced 2.1% from the previous three months; excluding large orders, they rose by 1.9%.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 23,855.18, the CAC-40 index edged lower 0.8% to 7,693.87, and the FTSE 100 index declined 0.2% to 8,801.82.
The yield on 10-year German bonds inched lower to 2.54%, French bonds decreased to 3.25%, the UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.45%.
The euro increased to $1.18, the British pound was lower at $1.37, and the U.S. dollar was lower and traded at 79.36 Swiss cents.
Brent crude decreased $0.09 to $68.55 a barrel, and the Dutch TTF natural gas was higher by €0.22 to €33.93 per MWh.
Europe Movers
Rheinmetall AG advanced 0.8% to €1,711.50, Safran SA declined 0.8% to €268.10, BAE Systems fell 0.3% to 1,871.0, Rolls-Royce Holdings PLC edged up 0.1% to 955.0 pence, and Airbus SE decreased 0.9% to €175.16.
HSBC Holdings declined 0.1% to 883.70 pence, Barclays PLC fell 0.3% to 331.55 pence, Credit Agricole SA decreased 0.9% to €16.01, and UniCredit SpA dropped 0.7% to €56.70.
Japan Indexes Trimmed Weekly Losses, Real Household Spending Advanced In May
Akira Ito
04 Jul, 2025
Tokyo
Japan's stock indexes edged higher for the second consecutive day and trimmed weekly losses amid trade uncertainty.
The Nikkei 225 Stock Average edged up 0.1%, and the broader Topix was nearly unchanged.
Investor sentiment has wavered ahead of the looming deadline on July 9, and trade negotiators are signaling a lack of progress after eight weeks of negotiations.
The U.S. has threatened a 25% tariff on Japanese vehicles and parts and proposed to shift a greater share of defense spending to Japan.
Moreover, the U.S. has also pushed Japan to import a higher share of rice, despite Japan importing nearly half of 770,000 tons of rice free of tariff from the U.S.
On the economic front, Japan's real household spending increased in May at the fastest pace since August 2022, government data showed Friday.
Real household spending increased 4.7% from a year ago to 316,085 ($2,200), the Ministry of Internal Affairs and Communication said.
Food spending, which makes up about 30% of household expenditures, edged up 1%, amid stable fresh vegetable and fruit prices, and people dined out more frequently.
The average monthly income of salaried households with at least two individuals increased 0.4% to 522,318 yen, advancing for the first time in five months.
Monthly spending data are keenly awaited by investors, because private consumption makes up more than half of Japan's gross domestic product.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.1% to 39,834.08, and the broader Topix was nearly unchanged at 2,828.88.
For the week, the Nikkei 225 Stock Average is down 2.2%, and the Topix fell 1.3%.
Japan Stock Movers
Tokyo Electric Power Company increased 2.7% to ¥541.0, and Keyence Corp. edged up 1.7% to ¥57,000.0.
Mizuho Financial Group added 2.4% to ¥4,055.0, Sumitomo Mitsui Financial Group edged up 0.9% to ¥3,692.0, and Mitsubishi UFJ Financial Group increased 1.4% to ¥2,015.50.
Japan Indexes Trimmed Weekly Losses, Real Household Spending Advanced In May
Akira Ito
04 Jul, 2025
Tokyo
Japan's stock indexes edged higher for the second consecutive day and trimmed weekly losses amid trade uncertainty.
The Nikkei 225 Stock Average edged up 0.1%, and the broader Topix was nearly unchanged.
Investor sentiment has wavered ahead of the looming deadline on July 9, and trade negotiators are signaling a lack of progress after eight weeks of negotiations.
The U.S. has threatened a 25% tariff on Japanese vehicles and parts and proposed to shift a greater share of defense spending to Japan.
Moreover, the U.S. has also pushed Japan to import a higher share of rice, despite Japan importing nearly half of 770,000 tons of rice free of tariff from the U.S.
On the economic front, Japan's real household spending increased in May at the fastest pace since August 2022, government data showed Friday.
Real household spending increased 4.7% from a year ago to 316,085 ($2,200), the Ministry of Internal Affairs and Communication said.
Food spending, which makes up about 30% of household expenditures, edged up 1%, amid stable fresh vegetable and fruit prices, and people dined out more frequently.
The average monthly income of salaried households with at least two individuals increased 0.4% to 522,318 yen, advancing for the first time in five months.
Monthly spending data are keenly awaited by investors, because private consumption makes up more than half of Japan's gross domestic product.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.1% to 39,834.08, and the broader Topix was nearly unchanged at 2,828.88.
For the week, the Nikkei 225 Stock Average is down 2.2%, and the Topix fell 1.3%.
Japan Stock Movers
Tokyo Electric Power Company increased 2.7% to ¥541.0, and Keyence Corp. edged up 1.7% to ¥57,000.0.
Mizuho Financial Group added 2.4% to ¥4,055.0, Sumitomo Mitsui Financial Group edged up 0.9% to ¥3,692.0, and Mitsubishi UFJ Financial Group increased 1.4% to ¥2,015.50.
China Stocks Meandered Ahead of U.S. Tariff Deadline Next Week
Li Chen
04 Jul, 2025
Hong Kong
Stocks in China struggled to advance for the second consecutive session amid a lack of progress in trade talks with the U.S.
The Hang Seng index fell as much as 1%, and the mainland-focused CSI 300 index edged slightly higher after morning jitters.
For the week, the Hang Seng index decreased 2.2%, but the CSI 300 index rose 1.6%.
Property stocks in Hong Kong came under pressure after the Hong Kong Monetary Authority drained financial liquidity from the system by selling notes worth HK $29.634 billion.
Trade negotiations between China and the U.S. have so far yielded little progress, as both sides maneuver to gain an advantage.
China is looking for the U.S. to cut down its additional duties to 10%, and the U.S. is expecting greater access for agriculture and food exports and protection of intellectual properties.
China Indexes and Stocks
The Hang Seng Index declined 0.8% to 23,889.39, and the CSI 300 index added 0.4% to 3,983.40.
CK Assets Holding Ltd. decreased 2.2% to HK $34.65, Sun Hung Kai Properties Ltd. declined 1.1% to $92.25, and Henderson Land Development Co. Ltd. fell 1.2% to HK $28.70.
Alibaba Group Holding Ltd. decreased 0.4% to HK $105.60, and Alibaba Health dropped 7% to HK $4.19.
Alibaba Group, the parent company for the health services provider, said it plans to sell US $1.5 billion of convertible bonds, potentially diluting its stake in the future.
Anjoy Foods Group decreased 2.4% to HK $58.40, and the company completed its initial public offering on the Hong Kong Stock Exchange.
The company raised net proceeds of HK$2.3 billion through the sale of 40 million shares at a price of HK$60per share.