Market Update
Europe Indexes Rebounded 2%, Eurozone Business Activities Growth Slowed In April
Bridgette Randall
23 Apr, 2025
London
European markets advanced amid hopes of easing of U.S.-led trade tensions, and investors reviewed the fresh batch of earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London jumped between 1% and 2% after the Trump administration signaled its willingness to compromise amid stiff resistance from China and key allies.
U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground.
Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month.
The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy.
Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May.
Despite the change in U.S. rhetoric, trade negotiations between Japan and the U.S. ended with no clear plan amid a lack of priorities and a changing demand list.
Moreover, it is not clear if the U.S. will lift, pause, or trim proposed tariffs on imports from the Euro Area, including shipments via Mexico and Canada.
On the economic front, private sector activity growth in the eurozone expanded for the fourth consecutive month.
The HCOB Eurozone Composite PMI decreased to 50.1 in April from 50.9 in the previous month, according to a monthly update from S&P Global.
Private sector activities in Germany unexpectedly declined in April, the first decline in four months, as tariff uncertainty weighed on business confidence and demand.
The HCOB Flash Germany Composite PMI declined to 49.7 in April from 51.3 in March, according to a separate release by S&P Global.
Europe Indexes and Yields
The DAX index increased by 2.3% to 21,779.53, the CAC-40 index edged higher by 1.5% to 7,434.58, and the FTSE 100 index advanced by 1.2% to 8,428.84.
The yield on 10-year German bonds inched higher to 2.47%, French bonds increased to 3.23%, the UK gilts moved down to 4.53%, and Italian bonds edged higher to 3.61%.
The euro decreased to $1.14; the British pound was higher at $1.33; and the U.S. dollar advanced and traded at 82.10 Swiss cents.
Brent crude increased $1.04 to $68.48 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.79 per MWh.
Europe Movers
SAP AG jumped 9.7% to €239.95 after the German software company reported a 60% jump in operating profit in its latest quarter.
Revenue edged up 14% to €9.01 billion from €8.04 billion, operating income swung to a profit of €2.33 billion compared to a loss of €787 million, and earnings per share came in at €1.52 compared to a loss of 71 cents a year ago.
Danone Group traded flat at €73.74 after the French dairy products maker reported higher sales in the first quarter of 2025 and comparable sales rose above 4%.
The company guided fiscal 2025 comparable sales to grow between 3% and 5%, with recurring operating income growing faster than sales.
Volvo Group rose 1.4% to 254.70 krona after the Swedish vehicle manufacturer announced its plans to cut 800 U.S. jobs amid weak truck sales and a sharp drop in earnings.
Just Eat Takeaway.com traded flat at €19.16 after the Dutch on-demand delivery company reported first-quarter 2025 gross transaction value results.
Total gross transaction value amounted to €4.72 billion, up from €4.70 billion a year ago, while total orders were down 6% to 156.1 million from 166.6 million in the same quarter in 2024.
The company guided 2025 adjusted EBITDA to be between €360 million and €380 million and constant currency GTV growth, excluding the rest of the world segment, to range between 4% and 8% from a year ago.
Europe Indexes Rebounded 2%, Eurozone Business Activities Growth Slowed In April
Bridgette Randall
23 Apr, 2025
London
European markets advanced amid hopes of easing of U.S.-led trade tensions, and investors reviewed the fresh batch of earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London jumped between 1% and 2% after the Trump administration signaled its willingness to compromise amid stiff resistance from China and key allies.
U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground.
Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month.
The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy.
Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May.
Despite the change in U.S. rhetoric, trade negotiations between Japan and the U.S. ended with no clear plan amid a lack of priorities and a changing demand list.
Moreover, it is not clear if the U.S. will lift, pause, or trim proposed tariffs on imports from the Euro Area, including shipments via Mexico and Canada.
On the economic front, private sector activity growth in the eurozone expanded for the fourth consecutive month.
The HCOB Eurozone Composite PMI decreased to 50.1 in April from 50.9 in the previous month, according to a monthly update from S&P Global.
Private sector activities in Germany unexpectedly declined in April, the first decline in four months, as tariff uncertainty weighed on business confidence and demand.
The HCOB Flash Germany Composite PMI declined to 49.7 in April from 51.3 in March, according to a separate release by S&P Global.
Europe Indexes and Yields
The DAX index increased by 2.3% to 21,779.53, the CAC-40 index edged higher by 1.5% to 7,434.58, and the FTSE 100 index advanced by 1.2% to 8,428.84.
The yield on 10-year German bonds inched higher to 2.47%, French bonds increased to 3.23%, the UK gilts moved down to 4.53%, and Italian bonds edged higher to 3.61%.
The euro decreased to $1.14; the British pound was higher at $1.33; and the U.S. dollar advanced and traded at 82.10 Swiss cents.
Brent crude increased $1.04 to $68.48 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.79 per MWh.
Europe Movers
SAP AG jumped 9.7% to €239.95 after the German software company reported a 60% jump in operating profit in its latest quarter.
Revenue edged up 14% to €9.01 billion from €8.04 billion, operating income swung to a profit of €2.33 billion compared to a loss of €787 million, and earnings per share came in at €1.52 compared to a loss of 71 cents a year ago.
Danone Group traded flat at €73.74 after the French dairy products maker reported higher sales in the first quarter of 2025 and comparable sales rose above 4%.
The company guided fiscal 2025 comparable sales to grow between 3% and 5%, with recurring operating income growing faster than sales.
Volvo Group rose 1.4% to 254.70 krona after the Swedish vehicle manufacturer announced its plans to cut 800 U.S. jobs amid weak truck sales and a sharp drop in earnings.
Just Eat Takeaway.com traded flat at €19.16 after the Dutch on-demand delivery company reported first-quarter 2025 gross transaction value results.
Total gross transaction value amounted to €4.72 billion, up from €4.70 billion a year ago, while total orders were down 6% to 156.1 million from 166.6 million in the same quarter in 2024.
The company guided 2025 adjusted EBITDA to be between €360 million and €380 million and constant currency GTV growth, excluding the rest of the world segment, to range between 4% and 8% from a year ago.
U.S. Movers: GE Vernova, Check Point Software, Intuitive Surgical, Tesla
Scott Peters
23 Apr, 2025
New York City
Tesla Inc. surged 5.4% to $250.80 after the electric vehicle maker reported first-quarter 2025 results.
Revenue declined to $19.33 billion from $21.30 billion, net income edged down to $409 million from $1.39 billion, and diluted earnings per share fell to 12 cents from 41 cents a year ago.
The decline in revenue came with fewer vehicle deliveries, in part due to the Model Y update across all four vehicle factories, the company said in a release to investors.
Furthermore, the average selling price also dropped, and the company experienced growth in energy generation, storage, and services.
Intuitive Surgical Inc. eased 0.8% to $474.70 after the medical devices company reported first-quarter 2025 results.
Revenue surged to $2.25 billion from $1.89 billion, net income jumped to $698.4 million from $544.9 million, and diluted earnings per share rose to $1.92 from $1.51 a year ago.
The company guided fiscal 2025 worldwide da Vinci procedure growth to be between 15% and 17%, compared to 17% in 2024, including an estimated impact of tariffs of 1.7% of revenue, plus or minus 30 basis points.
GE Vernova Inc. surged 8.3% to $353.0 after the electric power system provider reported first-quarter 2025 results.
Revenue jumped 11% to $8.03 billion from $7.26 billion, net income swung to a profit of $264 million compared to a loss of $106 million, and diluted earnings per share swung to a profit of 91 cents compared to a loss of 47 cents a year ago.
The company guided fiscal 2025 revenue to be between $36 billion and $37 billion, compared to $34.93 billion in 2024; adjusted EBITDA margin to be in the high-single-digit percentage; and free cash flow between $2.0 billion and $2.5 billion.
“The guidance includes the impact of tariffs as currently outlined and resulting inflation, which is estimated to be approximately $300 million to $400 million, net of mitigating actions,” the company said in a release to investors.
The energy company proposed a dividend of 25 cents per share for the second quarter, payable on May 16 to stockholders on record as of April 18.
In addition, GE Vernova repurchased approximately 4 million shares for $1.2 billion in the first quarter and approximately 1 million shares for $0.3 billion from April 1 to April 17, at a total year-to-date average price of $299.
Check Point Software Technologies Ltd. gained 1.6% to $215.79 after the cybersecurity solutions provider reported first-quarter 2025 results.
Revenue increased to $637.8 million from $598.8 million, net income jumped to $190.9 million from $183.9 million, and diluted earnings per share rose to $1.71 from $1.60 a year ago.
U.S. Movers: Intuitive Surgical, Tesla
Scott Peters
23 Apr, 2025
New York City
Tesla Inc. surged 5.4% to $250.80 after the electric vehicle maker reported first-quarter 2025 results.
Revenue declined to $19.33 billion from $21.30 billion, net income edged down to $409 million from $1.39 billion, and diluted earnings per share fell to 12 cents from 41 cents a year ago.
The decline in revenue came with fewer vehicle deliveries, in part due to the Model Y update across all four vehicle factories, the company said in a release to investors.
Furthermore, the average selling price also dropped, and the company experienced growth in energy generation, storage, and services.
Intuitive Surgical Inc. eased 0.8% to $474.70 after the medical devices company reported first-quarter 2025 results.
Revenue surged to $2.25 billion from $1.89 billion, net income jumped to $698.4 million from $544.9 million, and diluted earnings per share rose to $1.92 from $1.51 a year ago.
The company guided fiscal 2025 worldwide da Vinci procedure growth to be between 15% and 17%, compared to 17% in 2024, including an estimated impact of tariffs of 1.7% of revenue, plus or minus 30 basis points.
Europe Movers: Danone, Just Eat, SAP, Volvo, Vopak
Inga Muller
23 Apr, 2025
Frankfurt
SAP AG dropped 3.3% to €218.50 after the German software company reported first-quarter 2025 results.
Revenue edged up 14% to €9.01 billion from €8.04 billion, operating income swung to a profit of €2.33 billion compared to a loss of €787 million, and earnings per share came in at €1.52 compared to a loss of 71 cents a year ago.
The company completed the third tranche of its share buyback program on April 8, with a purchased volume of approximately €1.5 billion.
SAP guided fiscal 2025 cloud and software revenue to be between €33.1 billion and €33.6 billion, up 11% to 13% compared to €29.83 billion in 2024, and non-IFRS operating profit between €10.3 billion and €10.6 billion, an increase of 26% to 30% from 8.15 billion a year earlier.
The company also continues to expect current cloud backlog growth at constant currencies to slightly decelerate in 2025.
The software company proposed a dividend of €2.35 per share for fiscal 2024, an increase of 6.8% compared to the prior year.
Danone Group traded flat at €73.74 after the French dairy products maker reported higher sales in the first quarter of 2025.
Revenue jumped 0.8% to €6.84 billion from €6.79 billion a year ago, as comparable sales edged up 4.3% in the quarter.
Sales in China, North Asia, and Oceania surged 11.5% to €936 million from €840 million, while sales in North America declined by 5.9% to €1.63 billion from €1.74 billion a year earlier.
The company guided fiscal 2025 comparable sales to grow between 3% and 5%, with recurring operating income growing faster than sales.
Volvo Group eased 0.1% to 251.20 krona after the Swedish vehicle manufacturer reported first-quarter 2025 results.
Net sales declined to SEK 121.79 billion from SEK 131.18 billion, net income fell to SEK 9.89 billion from SEK 14.08 billion, and diluted earnings per share dropped to SEK 4.86 from SEK 6.92 a year ago.
The decline comes amid uncertainty surrounding U.S. tariffs and their effect on global trade, the company said in a release to investors.
Vopak NV traded flat at €37.80 after the tank storage company reported a slight increase in first-quarter 2025 revenue.
Revenue inched up to €328.9 million from €328.2 million, net profit slipped to €99.8 million from €105.8 million, and earnings per share were flat at 85 cents compared to a year ago.
The company announced a share buyback program of up to €100 million, and around 49% of the program had been executed by April 17.
Just Eat Takeaway.com traded flat at €19.16 after the Dutch on-demand delivery company reported first-quarter 2025 gross transaction value results.
Total gross transaction value amounted to €4.72 billion, up from €4.70 billion a year ago, while total orders were down 6% to 156.1 million from 166.6 million in the same quarter in 2024.
The company guided 2025 adjusted EBITDA to be between €360 million and €380 million and constant currency Gross Transaction Volume growth, excluding the rest of the world segment, to range between 4% and 8% from a year ago.
The food delivery company estimated free cash flow before changes in working capital to be approximately €100 million in 2025, with an adjusted EBITDA margin in excess of 5% of GTV.
Europe Movers: Danone, Just Eat, SAP, Volvo, Vopak
Inga Muller
23 Apr, 2025
Frankfurt
SAP AG dropped 3.3% to €218.50 after the German software company reported first-quarter 2025 results.
Revenue edged up 14% to €9.01 billion from €8.04 billion, operating income swung to a profit of €2.33 billion compared to a loss of €787 million, and earnings per share came in at €1.52 compared to a loss of 71 cents a year ago.
The company completed the third tranche of its share buyback program on April 8, with a purchased volume of approximately €1.5 billion.
SAP guided fiscal 2025 cloud and software revenue to be between €33.1 billion and €33.6 billion, up 11% to 13% compared to €29.83 billion in 2024, and non-IFRS operating profit between €10.3 billion and €10.6 billion, an increase of 26% to 30% from 8.15 billion a year earlier.
The company also continues to expect current cloud backlog growth at constant currencies to slightly decelerate in 2025.
The software company proposed a dividend of €2.35 per share for fiscal 2024, an increase of 6.8% compared to the prior year.
Danone Group traded flat at €73.74 after the French dairy products maker reported higher sales in the first quarter of 2025.
Revenue jumped 0.8% to €6.84 billion from €6.79 billion a year ago, as comparable sales edged up 4.3% in the quarter.
Sales in China, North Asia, and Oceania surged 11.5% to €936 million from €840 million, while sales in North America declined by 5.9% to €1.63 billion from €1.74 billion a year earlier.
The company guided fiscal 2025 comparable sales to grow between 3% and 5%, with recurring operating income growing faster than sales.
Volvo Group eased 0.1% to 251.20 krona after the Swedish vehicle manufacturer reported first-quarter 2025 results.
Net sales declined to SEK 121.79 billion from SEK 131.18 billion, net income fell to SEK 9.89 billion from SEK 14.08 billion, and diluted earnings per share dropped to SEK 4.86 from SEK 6.92 a year ago.
The decline comes amid uncertainty surrounding U.S. tariffs and their effect on global trade, the company said in a release to investors.
Vopak NV traded flat at €37.80 after the tank storage company reported a slight increase in first-quarter 2025 revenue.
Revenue inched up to €328.9 million from €328.2 million, net profit slipped to €99.8 million from €105.8 million, and earnings per share were flat at 85 cents compared to a year ago.
The company announced a share buyback program of up to €100 million, and around 49% of the program had been executed by April 17.
Just Eat Takeaway.com traded flat at €19.16 after the Dutch on-demand delivery company reported first-quarter 2025 gross transaction value results.
Total gross transaction value amounted to €4.72 billion, up from €4.70 billion a year ago, while total orders were down 6% to 156.1 million from 166.6 million in the same quarter in 2024.
The company guided 2025 adjusted EBITDA to be between €360 million and €380 million and constant currency Gross Transaction Volume growth, excluding the rest of the world segment, to range between 4% and 8% from a year ago.
The food delivery company estimated free cash flow before changes in working capital to be approximately €100 million in 2025, with an adjusted EBITDA margin in excess of 5% of GTV.
Japan's Business Activities Index Rebounded in April, Yen Hovered Near 6-Month High
Akira Ito
23 Apr, 2025
Tokyo
Stock market indexes in Tokyo headed higher following overnight gains on Wall Street and supported by the rebound in private sector activities.
The Nikkei 225 Stock Average rose as much as 2.2%, and the broader TOPIX index advanced as much as 2.3% amid hopes of easing trade tensions between the U.S. and China.
U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground.
Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month.
The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy.
Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May.
Despite the change in U.S. rhetoric, trade negotiations between Japan and the U.S. ended with no clear plan amid a lack of priorities and a changing demand list.
Japanese vehicle makers are still bracing for 25% U.S. tariffs, and additional tariffs may be imposed on shipments from Mexico.
The Japanese yen traded at 142.09 against the U.S. dollar as investors sought safety in the currency amid elevated global trade uncertainty and growing skepticism about U.S. dollar-denominated assets.
On the economic front, Japan's private sector activities returned to growth in April from the slump in March.
The au Jibun Bank Japan Manufacturing PMI advanced to 48.5 from 48.4 in March, confirming the contraction for the tenth consecutive month, according to data released by S&P Global.
Factories saw new orders decline at the steepest rate in over a year amid a stronger deterioration in foreign demand, as well as reports of subdued client spending and concerns over tariffs.
In contrast, services companies reported the strongest rise in new work since January.
The au Jibun Bank Japan Services PMI index improved to 52.2 in April from 50.0 in March, signaling modest recovery in the service sector activities.
The composite output index increased to 51.1 from 48.9 in March, supported by a rebound in the services activity.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 1.8% to 34,835.58, and the broader TOPIX index advanced 1.7% to 2,577.17.
Toyota Motor Company rose 4.8% to ¥2,578.50, Honda Motor Company increased 2% to ¥1,413.0, and Nissan Motor Company advanced 4.2% to ¥327.40.
Ocean shipping companies were in focus, and ports in Los Angeles and Long Beach, California, reported rising cancelation of container ship arrivals from China and Asia.
At least container ship arrivals have been canceled so far in May, and the number of cancelations is expected to surge in the coming weeks as the Trump administration's import tax is scheduled to become effective on May 2.
Nippon Yusen rose 2.3% to ¥4,580.0, Mitsui O.S.K. Lines Ltd. advanced 1.8% to ¥4,996.0, and Kawasaki Kisen Kaisha Ltd. was up 1.3% to ¥1,863.0.
Japan's Business Activities Index Rebounded in April, Yen Hovered Near 6-Month High
Akira Ito
23 Apr, 2025
Tokyo
Stock market indexes in Tokyo headed higher following overnight gains on Wall Street and supported by the rebound in private sector activities.
The Nikkei 225 Stock Average rose as much as 2.2%, and the broader TOPIX index advanced as much as 2.3% amid hopes of easing trade tensions between the U.S. and China.
U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground.
Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month.
The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy.
Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May.
Despite the change in U.S. rhetoric, trade negotiations between Japan and the U.S. ended with no clear plan amid a lack of priorities and a changing demand list.
Japanese vehicle makers are still bracing for 25% U.S. tariffs, and additional tariffs may be imposed on shipments from Mexico.
The Japanese yen traded at 142.09 against the U.S. dollar as investors sought safety in the currency amid elevated global trade uncertainty and growing skepticism about U.S. dollar-denominated assets.
On the economic front, Japan's private sector activities returned to growth in April from the slump in March.
The au Jibun Bank Japan Manufacturing PMI advanced to 48.5 from 48.4 in March, confirming the contraction for the tenth consecutive month, according to data released by S&P Global.
Factories saw new orders decline at the steepest rate in over a year amid a stronger deterioration in foreign demand, as well as reports of subdued client spending and concerns over tariffs.
In contrast, services companies reported the strongest rise in new work since January.
The au Jibun Bank Japan Services PMI index improved to 52.2 in April from 50.0 in March, signaling modest recovery in the service sector activities.
The composite output index increased to 51.1 from 48.9 in March, supported by a rebound in the services activity.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 1.8% to 34,835.58, and the broader TOPIX index advanced 1.7% to 2,577.17.
Toyota Motor Company rose 4.8% to ¥2,578.50, Honda Motor Company increased 2% to ¥1,413.0, and Nissan Motor Company advanced 4.2% to ¥327.40.
Ocean shipping companies were in focus, and ports in Los Angeles and Long Beach, California, reported rising cancelation of container ship arrivals from China and Asia.
At least container ship arrivals have been canceled so far in May, and the number of cancelations is expected to surge in the coming weeks as the Trump administration's import tax is scheduled to become effective on May 2.
Nippon Yusen rose 2.3% to ¥4,580.0, Mitsui O.S.K. Lines Ltd. advanced 1.8% to ¥4,996.0, and Kawasaki Kisen Kaisha Ltd. was up 1.3% to ¥1,863.0.
China Stocks Rebound Amid Hopes of Easing U.S. Trade Tensions
Li Chen
23 Apr, 2025
Hong Kong
Stocks rebounded in China and Hong Kong amid hopes of cooling trade tensions with the U.S.
The Hang Seng index advanced 2%, and the mainland-focused CSI 300 index gained more than 1% following a rebound on Wall Street.
U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground.
Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month.
The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy.
Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May.
Investors shifted their attention to the announcement after the Politburo meeting later in the week, amid hopes of more clarity about the previously announced fiscal measures.
Later in the week, market participants are awaiting earnings results from several leading banks, property developers, and financial services providers.
On the economic front, the People's Bank of China held steady its loan prime rates for the sixth consecutive month amid elevated global trade uncertainties.
The one-year rate, used for most corporate and household loans, was held at 3.1%, and the five-year rate, the reference rate for mortgage loans, was kept unrevised at 3.6%.
Last week, China reported its first-quarter GDP growth of 5.4%, matching the rate in the previous quarter amid Beijing's efforts to revive economic activities.
Beijing is prioritizing consumer spending in its ongoing stimulus program, and policymakers are considering raising 300 billion yuan through the sale of ultra-long special treasury bonds and financing a consumer goods trade program.
China Indexes and Stocks
The Hang Seng index jumped 2.2% to 22,048.59, and the CSI 300 index added 1% to 3,792.20.
Leading exporters and online platform operators led gainers in China and Hong Kong trading.
Alibaba Group Holding jumped 2.2% to HK $116.40, Tencent Holdings jumped 3.3% to HK $476.0, and Meituan advanced 3.3% to HK $133.40.
Xiaomi Corp. jumped 6.6% to HK $47.35, Sunny Optical Technology Group gained 3.3% to HK $65.15, and Kuaishou Technology increased 3.3% to HK $51.90.
Zijin Mining Group decreased 4.4% to HK $17.18 despite the price of gold in international trading crossing $3,500 before pulling back closer to $3,300.
China Stocks Rebound Amid Hopes of Easing U.S. Trade Tensions
Li Chen
23 Apr, 2025
Hong Kong
Stocks rebounded in China and Hong Kong amid hopes of cooling trade tensions with the U.S.
The Hang Seng index advanced 2%, and the mainland-focused CSI 300 index gained more than 1% following a rebound on Wall Street.
U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground.
Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month.
The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy.
Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May.
Investors shifted their attention to the announcement after the Politburo meeting later in the week, amid hopes of more clarity about the previously announced fiscal measures.
Later in the week, market participants are awaiting earnings results from several leading banks, property developers, and financial services providers.
On the economic front, the People's Bank of China held steady its loan prime rates for the sixth consecutive month amid elevated global trade uncertainties.
The one-year rate, used for most corporate and household loans, was held at 3.1%, and the five-year rate, the reference rate for mortgage loans, was kept unrevised at 3.6%.
Last week, China reported its first-quarter GDP growth of 5.4%, matching the rate in the previous quarter amid Beijing's efforts to revive economic activities.
Beijing is prioritizing consumer spending in its ongoing stimulus program, and policymakers are considering raising 300 billion yuan through the sale of ultra-long special treasury bonds and financing a consumer goods trade program.
China Indexes and Stocks
The Hang Seng index jumped 2.2% to 22,048.59, and the CSI 300 index added 1% to 3,792.20.
Leading exporters and online platform operators led gainers in China and Hong Kong trading.
Alibaba Group Holding jumped 2.2% to HK $116.40, Tencent Holdings jumped 3.3% to HK $476.0, and Meituan advanced 3.3% to HK $133.40.
Xiaomi Corp. jumped 6.6% to HK $47.35, Sunny Optical Technology Group gained 3.3% to HK $65.15, and Kuaishou Technology increased 3.3% to HK $51.90.
Zijin Mining Group decreased 4.4% to HK $17.18 despite the price of gold in international trading crossing $3,500 before pulling back closer to $3,300.
U.S. Movers: GE, Moody’s, MSCI, Northern Trust, PulteGroup
Scott Peters
22 Apr, 2025
New York City
Moody’s Corp. gained 0.03% to $413.30 after the bond rating agency reported first-quarter 2025 results.
Revenue edged up to $1.92 billion from $1.79 billion, net income jumped to $625 million from $577 million, and diluted earnings per share rose to $3.46 from $3.15 a year ago.
The company guided fiscal 2025 revenue to increase in the mid-single-digit percent range, compared to $7.09 billion in 2024, and diluted earnings per share to be between $12.00 and $12.75, compared to $11.26 a year ago.
MSCI Inc. dropped 0.03% to $533.33 after the custom index and financial data analytics company reported first-quarter 2025 results.
Revenue surged to $745.83 million from $679.96 million, net income jumped to $288.60 million from $255.95 million, and diluted earnings per share rose to $3.71 from $3.22 a year ago.
In the first quarter and through April 21, a total of $275.4 million, or 493,322 shares, was repurchased, and the company paid approximately $139.7 million in dividends.
The company proposed to pay a cash dividend of $1.80 per share for the fiscal second quarter of 2025.
PulteGroup Inc. gained 2.3% to $95.30 after the home builder reported first-quarter 2025 results.
Total revenue declined to $3.89 billion from $3.95 billion, net income edged down to $522.80 million from $662.98 million, and diluted earnings per share fell to $2.57 from $3.10 a year ago.
The company closed 6,583 homes, generating home sale revenues of $3.7 billion, and announced net new orders of 7,765 homes with a value of $4.5 billion, compared to net new orders of 8,379 homes with a value of $4.7 billion a year ago.
The home builder said its unit backlog includes 11,335 homes with a value of $7.2 billion.
During the quarter, PulteGroup repurchased $300 million of common shares and announced a $1.3 billion cash position.
Northern Trust Corp. surged 3.7% to $89.99 after the financial services company released first-quarter 2025 results.
Total revenue edged up to $1.94 billion from $1.65 billion, net income jumped to $392.0 million from $214.7 million, and diluted earnings per share rose to $1.90 from 96 cents a year ago.
GE Aerospace surged 3.1% to $183.89 after the provider of jet and turboprop engines reported first-quarter 2025 results.
Revenue climbed 11% to $9.93 billion from $8.95 billion, profit edged up 13% to $2.24 billion from $1.99 billion, and continuing earnings per share rose 16% to $1.83 from $1.58 a year ago.
The company guided fiscal 2025 operating profit to be between $7.8 billion and $8.2 billion, compared to $7.3 billion in 2024, and adjusted earnings per share between $5.10 and $5.45, compared to $4.60 a year earlier.
U.S. Movers: Moody’s, MSCI, Northern Trust, PulteGroup
Scott Peters
22 Apr, 2025
New York City
Moody’s Corp. gained 0.03% to $413.30 after the bond rating agency reported first-quarter 2025 results.
Revenue edged up to $1.92 billion from $1.79 billion, net income jumped to $625 million from $577 million, and diluted earnings per share rose to $3.46 from $3.15 a year ago.
The company guided fiscal 2025 revenue to increase in the mid-single-digit percent range, compared to $7.09 billion in 2024, and diluted earnings per share to be between $12.00 and $12.75, compared to $11.26 a year ago.
MSCI Inc. dropped 0.03% to $533.33 after the custom index and financial data analytics company reported first-quarter 2025 results.
Revenue surged to $745.83 million from $679.96 million, net income jumped to $288.60 million from $255.95 million, and diluted earnings per share rose to $3.71 from $3.22 a year ago.
In the first quarter and through April 21, a total of $275.4 million, or 493,322 shares, was repurchased, and the company paid approximately $139.7 million in dividends.
The company proposed to pay a cash dividend of $1.80 per share for the fiscal second quarter of 2025.
PulteGroup Inc. gained 2.3% to $95.30 after the home builder reported first-quarter 2025 results.
Total revenue declined to $3.89 billion from $3.95 billion, net income edged down to $522.80 million from $662.98 million, and diluted earnings per share fell to $2.57 from $3.10 a year ago.
The company closed 6,583 homes, generating home sale revenues of $3.7 billion, and announced net new orders of 7,765 homes with a value of $4.5 billion, compared to net new orders of 8,379 homes with a value of $4.7 billion a year ago.
The home builder said its unit backlog includes 11,335 homes with a value of $7.2 billion.
During the quarter, PulteGroup repurchased $300 million of common shares and announced a $1.3 billion cash position.
Northern Trust Corp. surged 3.7% to $89.99 after the financial services company released first-quarter 2025 results.
Total revenue edged up to $1.94 billion from $1.65 billion, net income jumped to $392.0 million from $214.7 million, and diluted earnings per share rose to $1.90 from 96 cents a year ago.
Trump's Attack on Fed Chair Adds One More Layer of Uncertainty, Gold Soars to New High
Barry Adams
22 Apr, 2025
New York City
Wall Street indexes attempted to rebound following a steep sell-off in the previous session amid lingering trade policy uncertainties compounded by attacks on the Federal Reserve.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.1% following a sharp sell-off in Monday's trading after the Trump administration's attacks unnerved investors.
Investor anxieties rose after Donald Trump ramped up vicious and personal attacks on Fed Chair Jerome Powell and demanded an immediate rate cut, interfering with the autonomy of the central bank.
Global investors continue to sell the U.S. dollar-denominated assets after the U.S. president's attack on the independence of the central bank raised the prospects of politicizing the monetary policy.
Moreover, the lack of progress in negotiations with China, Canada, Mexico, and Japan also weighed on the market sentiment.
The Trump administration imposed tariffs ranging between 25% and 245% on imports from Europe and Asia, and the import taxes are likely to hit small businesses hard.
Small businesses in the retail and manufacturing sectors rely on several products and intermediate components from China, Vietnam, and the ASEAN region, and many independent businesses are likely to face bankruptcy in the months ahead.
Moreover, the U.S. economy is likely to hit a recession in the third quarter as businesses avoid making capital investment decisions and supply chains are reoriented to other markets.
Gold surged as much as 0.7% and reached a new intraday high of $3,490.11 as investors looked for safety amid growing economic uncertainty.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 1.3% to 5,227.86, the Nasdaq Composite edged up 1.6% to 16,126.70, and the Russell 2000 index was up 1.6% to 1,869.51.
The yield on 2-year Treasury notes edged higher to 3.80%, 10-year Treasury notes decreased to 4.38%, and 30-year Treasury bonds declined to 4.86%.
WTI crude oil increased $0.72 to $63.13 a barrel, and natural gas prices edged higher by $0.02 to $3.03 a thermal unit.
Gold decreased by $12.58 to 3,423.56 an ounce, and silver edged down by $0.01 to $32.73.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.37 to 98.65, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Nvidia Corp. jumped 1.3% to $98.17 and rebounded from a 5% decline in the previous session amid a looming deadline for shipments to China.
Moreover, the artificial intelligence chip maker announced a $5.5 billion one-time after the U.S. banned the company from selling previously approved chips to China.
Home builders were under pressure amid worries that the sharp increase in tariffs on shipments from China are estimated to increase building material costs between 10% and 20% after May 2.
Toll Brothers declined 1.9% to $92.13, D.R. Horton decreased 0.4% to $120.76, PulteGroup fell 0.5% to $93.11, and NVR Inc. edged down a fraction to $7,133.84.
Trump's Attack on Fed Chair Adds One More Layer of Uncertainty, Gold Soars to New High
Barry Adams
22 Apr, 2025
New York City
Wall Street indexes attempted to rebound following a steep sell-off in the previous session amid lingering trade policy uncertainties compounded by attacks on the Federal Reserve.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.1% following a sharp sell-off in Monday's trading after the Trump administration's attacks unnerved investors.
Investor anxieties rose after Donald Trump ramped up vicious and personal attacks on Fed Chair Jerome Powell and demanded an immediate rate cut, interfering with the autonomy of the central bank.
Global investors continue to sell the U.S. dollar-denominated assets after the U.S. president's attack on the independence of the central bank raised the prospects of politicizing the monetary policy.
Moreover, the lack of progress in negotiations with China, Canada, Mexico, and Japan also weighed on the market sentiment.
The Trump administration imposed tariffs ranging between 25% and 245% on imports from Europe and Asia, and the import taxes are likely to hit small businesses hard.
Small businesses in the retail and manufacturing sectors rely on several products and intermediate components from China, Vietnam, and the ASEAN region, and many independent businesses are likely to face bankruptcy in the months ahead.
Moreover, the U.S. economy is likely to hit a recession in the third quarter as businesses avoid making capital investment decisions and supply chains are reoriented to other markets.
Gold surged as much as 0.7% and reached a new intraday high of $3,490.11 as investors looked for safety amid growing economic uncertainty.
U.S. Stock Movers
Nvidia Corp. jumped 1.3% to $98.17 and rebounded from a 5% decline in the previous session amid a looming deadline for shipments to China.
Moreover, the artificial intelligence chip maker announced a $5.5 billion one-time after the U.S. banned the company from selling previously approved chips to China.
Home builders were under pressure amid worries that the sharp increase in tariffs on shipments from China are estimated to increase building material costs between 10% and 20% after May 2.
Toll Brothers declined 1.9% to $92.13, D.R. Horton decreased 0.4% to $120.76, PulteGroup fell 0.5% to $93.11, and NVR Inc. edged down a fraction to $7,133.84.
Caution Prevailed In European Trading Amid Global Trade Uncertainties
Bridgette Randall
22 Apr, 2025
London
Investors across Europe remained cautious amid elevated trade tension and a lack of meaningful progress in resolving new tariff threats.
Benchmark indexes in Frankfurt, Paris, Milan, and London decreased after investors returned from a long Easter break.
Investors have been on edge amid constantly shifting U.S. trade policy and rapidly rising risks of a U.S. economic recession brought on by a U.S.-led tariff war.
Moreover, the Trump administration's pressure and sharp criticism of the Federal Reserve's policy also raised prospects of political interference and attacks on the autonomy of the central bank.
The Trumps' blame game on the Fed also contributed to the weakness in the U.S. dollar, as investors' confidence was shaken in the safe-haven status of the currency.
Gold surged as much as 0.7% and reached a new intraday high of $3,490.11 as investors looked for safety amid growing economic uncertainty.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 21,074.44, the CAC-40 index edged lower 0.5% to 7,250.84, and the FTSE 100 index advanced by 0.04% to 8,278.43.
The yield on 10-year German bonds inched lower to 2.46%, French bonds decreased to 3.23%, UK gilts moved up to 4.58%, and Italian bonds edged lower to 3.64%.
The euro decreased to $1.15; the British pound was higher at $1.34; and the U.S. dollar was higher and traded at 81.04 Swiss cents.
Brent crude increased $0.58 to $66.84 a barrel, and the Dutch TTF natural gas was higher by €0.01 to €35.38 per MWh.
Europe Movers
Hermes International S.A. dropped 3.2% to €2,287.00, LVMH declined 2.3% to €474.55, and Kering SA fell 0.6% to €163.52.
Volkswagen AG gained 2.1% to €91.42, Mercedes-Benz Group increased 1% to €50.72, BMW AG gained 0.3% to €70.46, and Renault SA advanced 0.7% to €44.09.
UniCredit SpA edged down 0.1% to €48.35, BNP Paribas SA advanced 1.4% to €71.74, Deutsche Bank rose 1.7% to €21.03, and Barclays PLC advanced 0.1% to 277.45 pence.