Market Update
U.S.-China Trade Framework Lacked Details, Consumer Price Inflation Accelerated In May
Barry Adams
11 Jun, 2025
New York City
Stock market indexes traded down after the U.S.-China trade announcements underwhelmed investors' expectations.
The S&P 500 index decreased 0.2%, the tech-heavy Nasdaq Composite declined 0.3%, and the bond yield edged higher.
At the end of two-day trade talks, the U.S. and China agreed to roll back high tariffs and resume exports of critical rare earth minerals from China, and the U.S. will permit Chinese students to continue with their college education.
Neither side provided the details of tariffs on imports and the critical data needed for the scope of import taxes.
“China reaffirmed that the two sides should move toward each other, honor their words with actions, and demonstrate good faith and concrete efforts in fulfilling their commitments, jointly safeguarding the hard-won outcomes of dialogue,” China-controlled CCTV quoted Vice Premier He Lifeng.
Despite the positive spin by the Chinese and the U.S. trade negotiators, the yield on 10-year U.S. Treasury notes is 4.48%.
Consumer price inflation edged up in May from April, according to the latest data released by the Bureau of Labor Statistics.
The CPI index edged up to an annual increase of 2.4% in May from a four-year low of 2.3% in April and accelerated for the first time in four months.
The core rate of inflation, which excludes volatile food and energy prices, held steady at 2.8%, the level last seen in 2021.
U.S. Movers
Dave & Buster's advanced 5.6% to $27.32, and the entertainment venue and restaurant operator reported better-than-expected quarterly results.
GitLab Inc. declined 12.8% to $42.30 despite the software platform for developers reporting better-than-expected fiscal first-quarter results.
However, the company's fiscal second quarter estimate range fell short of analysts' expectations.
GameStop Corporation declined 4.5% to $28.77 after the electronics retailer reported weaker-than-expected revenue in the latest quarter.
European Markets Flatlined Amid Trade Talks Skepticism
Bridgette Randall
11 Jun, 2025
London
European markets traded around the flatline as investors greeted the latest U.S.-China announcements with deep skepticism.
Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline after a choppy session in the previous session.
The U.S. and China trade negotiators announced a trade agreement framework after two days of talks in London.
However, the agreement still needs approval from leaders of the two largest economies in the world.
Moreover, negotiators failed to provide concrete details and milestones in the near future.
Meanwhile, the European Union officials signaled trade negotiations could extend beyond the July 9 deadline, adding uncertainty.
Europe Indexes and Yields
The DAX index increased by 0.1% to 24,002.54, the CAC-40 index edged higher by 0.2% to 7,819.75, and the FTSE 100 index advanced 0.2% to 8,868.38.
The yield on 10-year German bonds inched lower to 2.53%, French bonds increased to 3.21%, UK gilts moved up to 4.58%, and Italian bonds edged higher to 3.47%.
The euro decreased to $1.14; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 82.31 Swiss cents.
Brent crude increased $0.04 to $66.91 a barrel, and the Dutch TTF natural gas was higher by €0.37 to €35.15 per MWh.
Europe Movers
Inditex SA dropped 4.9% to €46.80 after the parent company of fashion retailer Zara reported weaker-than-expected quarterly sales.
The company signaled the slow start of the summer season compared to a year ago, citing ongoing economic headwinds.
European Markets Flatlined Amid Trade Talks Skepticism
Bridgette Randall
11 Jun, 2025
London
European markets traded around the flatline as investors greeted the latest U.S.-China announcements with deep skepticism.
Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline after a choppy session in the previous session.
The U.S. and China trade negotiators announced a trade agreement framework after two days of talks in London.
However, the agreement still needs approval from leaders of the two largest economies in the world.
Moreover, negotiators failed to provide concrete details and milestones in the near future.
Meanwhile, the European Union officials signaled trade negotiations could extend beyond the July 9 deadline, adding uncertainty.
Europe Indexes and Yields
The DAX index increased by 0.1% to 24,002.54, the CAC-40 index edged higher by 0.2% to 7,819.75, and the FTSE 100 index advanced 0.2% to 8,868.38.
The yield on 10-year German bonds inched lower to 2.53%, French bonds increased to 3.21%, UK gilts moved up to 4.58%, and Italian bonds edged higher to 3.47%.
The euro decreased to $1.14; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 82.31 Swiss cents.
Brent crude increased $0.04 to $66.91 a barrel, and the Dutch TTF natural gas was higher by €0.37 to €35.15 per MWh.
Europe Movers
Inditex SA dropped 4.9% to €46.80 after the parent company of fashion retailer Zara reported weaker-than-expected quarterly sales.
The company signaled the slow start of the summer season compared to a year ago, citing ongoing economic headwinds.
U.S. Movers: Chewy, Dave & Buster’s, GameStop, GitLab, Vera Bradley, Victoria’s Secret
Scott Peters
11 Jun, 2025
New York City
GameStop Corp. eased 3.5% to $29.08 after the retailer of video games and consumer electronics reported first-quarter fiscal 2025 results ending on May 3.
Net sales declined to $732.4 million from $881.8 million, net income swung to a profit of $44.8 million from a loss of $32.3 million, and diluted earnings per share swung to a profit of 9 cents from a loss of 11 cents a year ago.
The company sold its Canadian operations to French-Canadian entrepreneur Stephan Tetrault, adding to his list of toy and gaming ventures.
The sale of GameStop’s international assets follows news in March that the company would close a “significant number” of stores in 2025. In 2024, the company decreased its footprint with the closure of about 600 U.S. locations.
In the fourth quarter, GameStop completed its divestiture of its operations in Italy and “the wind-down of store operations in Germany.”
GitLab Inc. plunged 12.6% to $42.40 after the software developer platform operator reported first-quarter of fiscal 2026 results ending on April 30.
Revenue edged up to $214.51 million from $169.19 million, net loss narrowed to $35.87 million from a loss of $55.23 million, and diluted loss per share shrank to 22 cents from a loss of 35 cents a year ago.
The company guided second-quarter revenue to be between $226.0 million and $227.0 million, non-GAAP operating income between $23.0 million and $24.0 million, and non-GAAP diluted earnings per share between 16 cents and 17 cents.
In comparison, revenue in the second quarter of fiscal 2025 was $182.6 million, non-GAAP operating income was $18.2 million, and non-GAAp diluted earnings per share were 15 cents.
For the full fiscal year 2026, the company estimated revenue to be between $936 million and $942 million, non-GAAP operating income between $117 million and $121 million, and non-GAAP diluted earnings per share between 74 cents and 75 cents.
In comparison, full-year 2025 revenue was $759.2 million, non-GAAP operating income was $37.4 million, and non-GAAP diluted earnings per share were 33 cents.
Dave & Buster’s Entertainment Inc. surged 4.7% to $27.10 after the owner and operator of entertainment and dining venues reported results for its first quarter of fiscal 2025 ending on May 6.
Revenue declined to $567.7 million from $588.1 million, net income slipped to $21.7 million from $41.4 million, and diluted earnings per share fell to 62 cents from 99 cents a year ago.
During the quarter, the company repurchased $23.9 million of shares and has $104.1 million remaining on its share repurchase authorization.
The company opened two new Dave & Buster’s stores and completed the remodels of 13 stores in the first quarter, and subsequent to the end of the quarter, the company opened two additional stores.
Comparable store sales in the current quarter to date were down 2.2% from a year earlier.
Victoria’s Secret & Co. eased 0.4% to $22.10 after the lingerie retailer reported results for the fiscal first quarter ending on May 3.
Net sales declined to $1.353 billion from $1.359 billion, net loss shrank to $1.66 billion from a loss of $3.64 billion, and diluted loss per share narrowed to 2 cents from 5 cents a year ago.
Comparable sales in the quarter decreased 1% from a year earlier.
The company estimated net sales for the second quarter to be between $1.380 billion and $1.410 billion, compared to $1.417 billion; adjusted operating income between $15 million and $35 million, compared to $62 million; and adjusted diluted earnings per share between breakeven and 15 cents, compared to 24 cents in the same quarter last year, respectively.
The company revised its full-year outlook to include a net tariff impact of approximately $50 million for fiscal year 2025.
The retailer now expects full-year net sales to be between $6.2 billion and $6.3 billion, compared to $6.23 billion, and adjusted operating income between $270 million and $320 million, compared to $373 million a year earlier, respectively.
Vera Bradley Inc. traded down 5.5% to $2.22 after the luggage and handbag design company reported results for the first quarter of fiscal year 2026, ending on January 31.
Revenue plunged to $51.65 million from $67.95 million, net loss expanded to $33.46 million from $8.12 million, and diluted loss per share widened to $1.20 from 26 cents a year ago.
On March 11, the company agreed to sell 100% of Creative Genius Inc., which operates under the name Pura Vida Bracelets, and it is no longer included in the company’s consolidated financial results.
Chewy Inc. plunged 7.2% to $42.49 after the pet food retailer reported results for the fiscal first quarter ending on May 4.
Net sales increased to $3.12 billion from $2.88 billion, net income edged down to $62.4 million from $66.9 million, and diluted earnings per share were flat at 15 cents from a year ago.
U.S. Movers: Dave & Buster’s, GameStop, GitLab
Scott Peters
11 Jun, 2025
New York City
GameStop Corp. eased 3.5% to $29.08 after the retailer of video games and consumer electronics reported first-quarter fiscal 2025 results ending on May 3.
Net sales declined to $732.4 million from $881.8 million, net income swung to a profit of $44.8 million from a loss of $32.3 million, and diluted earnings per share swung to a profit of 9 cents from a loss of 11 cents a year ago.
The company sold its Canadian operations to French-Canadian entrepreneur Stephan Tetrault, adding to his list of toy and gaming ventures.
The sale of GameStop’s international assets follows news in March that the company would close a “significant number” of stores in 2025.
In 2024, the company decreased its footprint with the closure of about 600 U.S. locations.
In the fourth quarter, GameStop completed its divestiture of its operations in Italy and “the wind-down of store operations in Germany.”
GitLab Inc. plunged 12.6% to $42.40 after the software developer platform operator reported first-quarter of fiscal 2026 results ending on April 30.
Revenue edged up to $214.51 million from $169.19 million, net loss narrowed to $35.87 million from a loss of $55.23 million, and diluted loss per share shrank to 22 cents from a loss of 35 cents a year ago.
The company guided second-quarter revenue to be between $226.0 million and $227.0 million, non-GAAP operating income between $23.0 million and $24.0 million, and non-GAAP diluted earnings per share between 16 cents and 17 cents.
In comparison, revenue in the second quarter of fiscal 2025 was $182.6 million, non-GAAP operating income was $18.2 million, and non-GAAP diluted earnings per share were 15 cents.
For the full fiscal year 2026, the company estimated revenue to be between $936 million and $942 million, non-GAAP operating income between $117 million and $121 million, and non-GAAP diluted earnings per share between 74 cents and 75 cents.
In comparison, full-year 2025 revenue was $759.2 million, non-GAAP operating income was $37.4 million, and non-GAAP diluted earnings per share were 33 cents.
Dave & Buster’s Entertainment Inc. surged 4.7% to $27.10 after the owner and operator of entertainment and dining venues reported results for its first quarter of fiscal 2025 ending on May 6.
Revenue declined to $567.7 million from $588.1 million, net income slipped to $21.7 million from $41.4 million, and diluted earnings per share fell to 62 cents from 99 cents a year ago.
During the quarter, the company repurchased $23.9 million of shares and has $104.1 million remaining on its share repurchase authorization.
The company opened two new Dave & Buster’s stores and completed the remodels of 13 stores in the first quarter, and subsequent to the end of the quarter, the company opened two additional stores.
Comparable store sales in the current quarter to date were down 2.2% from a year earlier.
Europe Movers: Inditex
Inga Muller
11 Jun, 2025
Frankfurt
Inditex S.A. traded down 4.4% to €47.05 after the parent company of fashion retailer Zara reported first-quarter 2025 results ending on April 30.
Sales increased 1.5% to €8.3 billion from €8.27 billion, and net income jumped 0.8% to €1.3 billion from €1.299 billion a year ago.
Inventories stood at €3.79 million in the quarter, compared to €3.57 million a year earlier.
In the current year, the company estimates ordinary capital expenditure of around €1.8 billion.
The company proposed an annual dividend of €1.68 per share payable in two equal installments of 84 cents per share.
The first interim payment was made on May 2, and the final dividend will be paid on November 3.
In the first quarter, the company opened new stores in 26 markets, ending the period with 5,562 stores.
Europe Movers: Inditex
Inga Muller
11 Jun, 2025
Frankfurt
Inditex S.A. traded down 4.4% to €47.05 after the parent company of fashion retailer Zara reported first-quarter 2025 results ending on April 30.
Sales increased 1.5% to €8.3 billion from €8.27 billion, and net income jumped 0.8% to €1.3 billion from €1.23 billion a year ago.
Inventories stood at €3.79 million in the quarter, compared to €3.57 million a year earlier.
In the current year, the company estimates ordinary capital expenditure of around €1.8 billion.
The company proposed an annual dividend of €1.68 per share payable in two equal installments of 84 cents per share.
The first interim payment was made on May 2, and the final dividend will be paid on November 3.
In the first quarter, the company opened new stores in 26 markets, ending the period with 5,562 stores.
Japan's Producer Price Inflation Slowed to 8-Monh Low, Tokyo Stocks Advanced On Trade Talks Optimism
Akira Ito
11 Jun, 2025
Tokyo
Stock market indexes in Tokyo edged slightly higher, and investors reviewed the latest update on producer price inflation and announcements from U.S.-China trade negotiators.
The Nikkei 225 Stock Average increased 0.5%, and the broader Topix edged up a fraction as investors reviewed the framework agreement struck between the U.S. and China.
Despite the positive tone of the announcements from the Trump administration and Chinese negotiators, the lack of details and concrete plans to implement trade procedures kept investors guessing.
U.S. Commerce Secretary Howard Lutnick said to reporters in London that both sides have agreed to ease export controls on goods and technologies that are deemed critical.
China and the U.S. are facing deep structural issues, as two trade and military rivals look for an edge over the other in international trade and global diplomacy.
Chinese companies have reduced their dependence on the U.S. over the last six years, with direct exports falling to less than 14% from as high as 19% only a decade ago.
Moreover, U.S. farm exports to China are increasingly facing competition from exports from Brazil, Argentina, and Peru.
Closer to home on the economic front, Japan's producer price inflation eased in May and was positive for the 51st consecutive month, the Bank of Japan said in a report Wednesday.
The producer price index advanced 3.2% in May, slower than the marginally revised 4.1% in April.
The sharp slowdown in petroleum costs to 0.6% from a rise of 6.3% was offset by the sustained increase in production machinery prices by 2.6% compared to 2.8% in the previous month, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average added 0.5% to 38,390.77, and the broader Topix index increased 0.1% to 2,787.54.
Tokyo Electron jumped 3.8% to ¥24,645.0, Advantest Corp. added 0.5% to ¥8,349.0, and Disco Corp. increased 4.2% to ¥34,500.0.
Automakers advanced following the U.S.-China trade framework announcements, and investors overlooked the lack of progress in trade talks between the U.S. and China.
Toyota Motor Corp. added 0.2% to ¥2,662.0, Honda Motor Co. Ltd. gained 0.8% to ¥1,411.0, and Nissan Motor increased 2.6% to ¥361.60.
Japan's Producer Price Inflation Slowed to 8-Monh Low, Tokyo Stocks Advanced On Trade T
Akira Ito
11 Jun, 2025
Tokyo
Stock market indexes in Tokyo edged slightly higher, and investors reviewed the latest update on producer price inflation and announcements from U.S.-China trade negotiators.
The Nikkei 225 Stock Average increased 0.5%, and the broader Topix edged up a fraction as investors reviewed the framework agreement struck between the U.S. and China.
Despite the positive tone of the announcements from the Trump administration and Chinese negotiators, the lack of details and concrete plans to implement trade procedures kept investors guessing.
U.S. Commerce Secretary Howard Lutnick said to reporters in London that both sides have agreed to ease export controls on goods and technologies that are deemed critical.
China and the U.S. are facing deep structural issues, as two trade and military rivals look for an edge over the other in international trade and global diplomacy.
Chinese companies have reduced their dependence on the U.S. over the last six years, with direct exports falling to less than 14% from as high as 19% only a decade ago.
Moreover, U.S. farm exports to China are increasingly facing competition from exports from Brazil, Argentina, and Peru.
Closer to home on the economic front, Japan's producer price inflation eased in May and was positive for the 51st consecutive month, the Bank of Japan said in a report Wednesday.
The producer price index advanced 3.2% in May, slower than the marginally revised 4.1% in April.
The sharp slowdown in petroleum costs to 0.6% from a rise of 6.3% was offset by the sustained increase in production machinery prices by 2.6% compared to 2.8% in the previous month, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average added 0.5% to 38,390.77, and the broader Topix index increased 0.1% to 2,787.54.
Tokyo Electron jumped 3.8% to ¥24,645.0, Advantest Corp. added 0.5% to ¥8,349.0, and Disco Corp. increased 4.2% to ¥34,500.0.
Automakers advanced following the U.S.-China trade framework announcements, and investors overlooked the lack of progress in trade talks between the U.S. and China.
Toyota Motor Corp. added 0.2% to ¥2,662.0, Honda Motor Co. Ltd. gained 0.8% to ¥1,411.0, and Nissan Motor increased 2.6% to ¥361.60.
U.S.-China Trade Framework Lacks Details as Two Sides Struggle to Show Progress
Li Chen
11 Jun, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced as the U.S. and China wrapped up two-day trade talks in London.
The Hang Seng index increased 0.5%, and the CSI 300 index edged up 0.8% after trade negotiators said they have agreed "in principle to a framework" that needs approvals by respective leaders of the U.S. and China.
The 2-day trade meeting ended without a breakthrough as both sides signaled the need for additional talks in the month ahead.
The current pause in sky-high tariffs is set to expire on August 12, and the meeting in London came days after Xi Jinping and Donald Trump held a 90-minute phone call on June 5.
A trade agreement between the U.S. and China is likely to fall short of market expectations, as structural impediments are likely to hamper progress.
China has lowered its reliance on direct exports to the U.S. over the last six years, and Chinese companies have diversified their manufacturing bases to Mexico, Vietnam, Indonesia, and Malaysia.
Moreover, China has used as leverage its export of rare earth minerals to the U.S., critical elements needed for the manufacturing of advanced electronics systems.
The U.S. has also flipped the tariff negotiations to ban exports of advanced semiconductor chips needed for the development of China's artificial intelligence-driven products.
U.S.-China trade tensions are likely to persist in the years ahead, as China sources more agricultural products from South America and the U.S. keeps export bans on sensitive advanced technology.
While the Trump administration publicly states that the fundamental goal of tariffs is to decrease U.S. trade deficits, high tariffs on all key trade partners have never succeeded in reducing structural goods trade deficits.
Privately, U.S. lawmakers admit that tariffs, import taxes paid by U.S. consumers, are expected to play a key role in increasing federal government revenue.
China Indexes and Stocks
The Hang Seng Index gained 0.5% to 24,383.98, and the mainland-focused CSI 300 index added 0.8% to 3,897.35.
Baidu Inc. increased 1.8% to HK $87.20, Xiaomi Corp. added 2.2% to HK $54.65, and BYD Electronic International added 1.9% to HK $32.55.
Domestic consumer-focused companies traded down amid worries about the ongoing weakness in consumer demand growth.
Tingyi (Cayman Islands) Holding Corp. declined 2.4% to $12.04, Nongfu Spring dropped 1.9% to HK $38.55, and Mixue Group added 0.2% to HK $531.50.