Market Update
China Markets Extended Losses Following Middle East Tensions, Chow Tai Fook Jewellery In Focus
Li Chen
13 Jun, 2025
Hong Kong
China's stock market indexes fell and turned weekly gains to losses after Israel struck key installations in Tehran.
The Hang Seng index decreased 1%, and the CSI 300 index declined 0.8% after crude oil and gold prices jumped following renewed tensions in the Middle East.
Early Friday, Israel said it struck key military and nuclear stations at multiple locations in Iran and killed several top commanders and nuclear scientists.
Oil prices rose after the attack raised the prospect of supply disruption, and bond yields edged lower as investors sought safety in government bonds.
Crude oil prices advanced 7.8% to $73.43 a barrel, and gold jumped 1.1% to $3,423.92 an ounce.
China Indexes and Stocks
PetroChina added 2.2% to HK $7.43, CNOOC Ltd. increased 2.3% to HK $18.74, and Sinopec Shanghai Petrochemical increased 1.6% to HK $1.26.
The Hang Seng index decreased 1% to 23,804.05, and the mainland-focused CSI 300 index dropped 0.8% to 3,860.33.
Chow Tai Fook Jewelry Group Ltd. gained 6.2% to HK $13.04 after the jeweler's net income surpassed expectations.
Revenue declined to HK$89.66 billion from HK$108.71 billion, profit edged down to HK$5.91 billion from HK$6.50 billion, and diluted earnings per share fell to 59.2 cents from 65.0 cents a year ago.
The company closed down 906 points of sale in mainland China amid an ongoing weak demand outlook and lowered the mainland count of locations to 6,501.
E-commerce contributed 5.8% in retail sales volume and 13.8% in volume to mainland performance during the fiscal year 2025.
The significant growth was driven by several key factors, including the establishment of an in-house livestreaming studio and enhanced social media promotions.
U.S. Dollar Drops to Nearly Three-Year Low, Stocks Head Lower Amid Trade Policy Flip-Flops
Barry Adams
12 Jun, 2025
New York City
Wall Street indexes declined on Thursday as the U.S. president threatened additional tariffs ahead of the looming deadline.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite declined 0.1%, and Donald Trump announced he would impose additional tariffs if key trading partners failed to agree on a deal before the impending deadline on July 9.
The "sell America" narrative is taking hold as investors pivot to increasing their allocations to financial markets in the eurozone and Asia.
Moreover, the constantly changing trade policy of the Trump administration has also dimmed the safe-haven status of the U.S.
The U.S. dollar index dropped to 97.8, the lowest level since 2022, and the credibility of the Trump administration took another hit after Chinese officials refused to confirm details of the recently agreed "U.S.-China trade framework."
The measure of wholesale inflation increased in May, confirming the expectations set by economists.
The producer price index inched up 2.6% in May, from the upwardly revised 2.5% in April, the U.S. Bureau of Labor Statistics reported Thursday.
The core rate of producer price inflation, which excludes food and energy, inched lower to 3.0% from 3.2% in the previous month.
Continuing Jobless Claims Advance to 4-Year High
Initial jobless claims held steady at the end of last week; however, continuing claims rose, the Department of Labor reported in its weekly update on Thursday.
First-time filings for unemployment insurance were unchanged at 248,000 at the end of the week ending June 7, flat from the upwardly revised previous week's claims.
Meanwhile, continuing claims, which lag by one week, advanced by 54,000 to 1.96 million. and rose to the highest since mid-November 2021.
Initial jobless claims filed by the federal employees, which are not included in the weekly count, increased by 23 to 561.
The federal employees' claims are tracked through a separate system and are closely watched because of the recent dismissals by the Department of Government Efficiency.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.1% to 6,013.74, the Nasdaq Composite edged down 0.1% to 19,601.03, and the Russell 2000 index declined 0.7% to 2,132.87.
The yield on 2-year Treasury notes edged lower to 3.89%, 10-year Treasury notes decreased to 4.37%, and 30-year Treasury bonds declined to 4.84%.
WTI crude oil decreased $0.81 to $67.34 a barrel, and natural gas prices edged higher by $0.09 to $3.60 a thermal unit.
Gold increased by $26.74 to 3,392.02 an ounce, and silver edged down by $0.11 to $36.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.78 to 97.86 and traded at the lowest level since April 2022.
U.S. Movers
Boeing Company declined 6% to $201.06 after an Air India Dreamliner 787 crashed after takeoff with 242 passengers on board.
After the crash news, engine makers and other systems suppliers to Boeing fell.
General Electric Company fell 2.2% to $239.13, and Spirit AeroSystems Holdings dropped 2.1% to $37.32.
Oracle Corporation soared 8.6% to $191.50 after the company's fiscal fourth-quarter results surpassed market expectations, and the company signaled additional cloud revenue growth ahead.
U.S. Dollar Drops to Nearly Three-Year Low, Stocks Head Lower Amid Trade Policy Flip-Flops
Barry Adams
12 Jun, 2025
New York City
Wall Street indexes declined on Thursday as the U.S. president threatened additional tariffs ahead of the looming deadline.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite declined 0.1%, and Donald Trump announced he would impose additional tariffs if key trading partners failed to agree on a deal before the impending deadline on July 9.
The "sell America" narrative is taking hold as investors pivot to increasing their allocations to financial markets in the eurozone and Asia.
Moreover, the constantly changing trade policy of the Trump administration has also dimmed the safe-haven status of the U.S.
The U.S. dollar index dropped to 97.8, the lowest level since 2022, and the credibility of the Trump administration took another hit after Chinese officials refused to confirm details of the recently agreed "U.S.-China trade framework."
The measure of wholesale inflation increased in May, confirming the expectations set by economists.
The producer price index inched up 2.6% in May, from the upwardly revised 2.5% in April, the U.S. Bureau of Labor Statistics reported Thursday.
The core rate of producer price inflation, which excludes food and energy, inched lower to 3.0% from 3.2% in the previous month.
Continuing Jobless Claims Advance to 4-Year High
Initial jobless claims held steady at the end of last week; however, continuing claims rose, the Department of Labor reported in its weekly update on Thursday.
First-time filings for unemployment insurance were unchanged at 248,000 at the end of the week ending June 7, flat from the upwardly revised previous week's claims.
Meanwhile, continuing claims, which lag by one week, advanced by 54,000 to 1.96 million. and rose to the highest since mid-November 2021.
Initial jobless claims filed by the federal employees, which are not included in the weekly count, increased by 23 to 561.
The federal employees' claims are tracked through a separate system and are closely watched because of the recent dismissals by the Department of Government Efficiency.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.1% to 6,013.74, the Nasdaq Composite edged down 0.1% to 19,601.03, and the Russell 2000 index declined 0.7% to 2,132.87.
The yield on 2-year Treasury notes edged lower to 3.89%, 10-year Treasury notes decreased to 4.37%, and 30-year Treasury bonds declined to 4.84%.
WTI crude oil decreased $0.81 to $67.34 a barrel, and natural gas prices edged higher by $0.09 to $3.60 a thermal unit.
Gold increased by $26.74 to 3,392.02 an ounce, and silver edged down by $0.11 to $36.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.78 to 97.86 and traded at the lowest level since April 2022.
U.S. Movers
Boeing Company declined 6% to $201.06 after an Air India Dreamliner 787 crashed after takeoff with 242 passengers on board.
After the crash news, engine makers and other systems suppliers to Boeing fell.
General Electric Company fell 2.2% to $239.13, and Spirit AeroSystems Holdings dropped 2.1% to $37.32.
Oracle Corporation soared 8.6% to $191.50 after the company's fiscal fourth-quarter results surpassed market expectations, and the company signaled additional cloud revenue growth ahead.
European Markets Traded Down Amid Deteriorating Credibility of Trump Administration
Bridgette Randall
12 Jun, 2025
London
European market sentiment worsened after the U.S. president ramped up threats to impose higher tariffs ahead of the fast-approaching deadline.
Benchmark indexes in Frankfurt, Paris, Milan, and London fell as much as 0.7% as Donald Trump threatened to impose unilateral tariffs on key trading partners, including the European Union.
Financial markets have grown accustomed to constantly changing U.S. trade policy, and investors accelerate selling of the U.S. dollar-denominated assets.
The European Union member nations are increasingly looking to reduce their holdings of the U.S. stocks, bonds, and dollar-linked securities amid the waning safe-haven status of the U.S.
The European Union and the U.S. are expected to wrap up their trade talks before July 9, but negotiators in Brussels are signaling slow progress and a lack of an agreement.
U.S. Treasury Secretary Scott Bessent suggested that the current pause in sky-high import tax proposed by the U.S. may be extended by another three months for countries demonstrating "good faith" negotiations.
On Wednesday, Trump claimed that a trade framework with China has been finalized, without specifying the level of tariffs and scope of export controls.
But Chinese negotiators voiced their skepticism in Beijing, signaling that the two sides are far apart from a deal.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 23,770.54, the CAC-40 index edged lower 0.5% to 7,736.72, and the FTSE 100 index declined 0.02% to 8,862.54.
The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.20%, the UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.44%.
The euro increased to $1.15; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.69 Swiss cents.
Brent crude decreased $0.74 to $69.03 a barrel, and the Dutch TTF natural gas was higher by €0.38 to €36.36 per MWh.
Europe Movers
Kering SA decreased 2.3% to €176.18, LVMH fell 0.4% to €468.75, and Hermes International SCA declined 1.3% to €2,320.0.
Volkswagen AG dropped 1.2% to €90.60, Mercedes-Benz Group fell 1.6% to €51.18, Porsche Automobil Holding SE decreased 1.2% to €34.15, and Renault SA declined 1.2% to €43.70.