Market Update
S&P 500 Turns Positive Amid US-China Trade Truce
Barry Adams
14 May, 2025
New York City
Wall Street indexes flatlined on Wednesday, and tech stocks halted a five-day rally.
The S&P 500 index edged up 0.01%, and the Nasdaq Composite advanced 0.02%, following positive market sentiment for the last five trading sessions.
Investors breathed a sigh of relief after the U.S. and China struck a deal to de-escalate trade tensions and trimmed down previously announced sky-high tariffs, but structural issues surrounding bilateral trade are still unresolved.
The U.S. rolled back tariffs on packages arriving from China to 54% from the previously announced 120%, and China removed its ban on the purchase of Boeing airplanes.
The latest measures are likely to improve sentiment on Wall Street, but the fact remains that China and the U.S. are far apart on tariffs.
Moreover, China has reduced its reliance on the U.S. markets by diversifying its manufacturing locations and accelerated its exports in other markets in the ASEAN region, the Middle East, and Latin America.
Trade uncertainty is likely to return in the weeks ahead, as China ramps up its agricultural imports from Brazil, Argentina, Peru, Thailand, and Vietnam.
But the U.S. companies have deepened their reliance on Chinese companies for consumer goods, electrical appliances, raw materials, and intermediate goods.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.1% to 5,891.24, the Nasdaq Composite edged up 0.3% to 19,075.17, and the Russell 2000 index declined 0.2% to 2,097.49.
The yield on 2-year Treasury notes edged higher to 4.02%, 10-year Treasury notes increased to 4.50%, and 30-year Treasury bonds advanced to 4.95%.
WTI crude oil decreased $0.43 to $63.24 a barrel, and natural gas prices edged lower by $0.11 to $3.54 a thermal unit.
Gold decreased by $70.45 to 3,184.97 an ounce, and silver edged down by $0.55 to $32.39.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.32 to 100.68 and traded at a two-year high.
U.S. Stock Movers
American Eagle Outfitters dropped 11.5% to $11.26 after the company withdrew its annual outlook, citing tariff uncertainties.
In addition, the apparel retailer released its preliminary quarterly results and reported a revenue decline of about 5% to $1.1 billion and an operating loss of $85 million.
Abercrombie & Fitch declined 2.3% to $79.52. Urban Outfitters fell 0.8% to $58.89, and GAP decreased 1% to $25.15.
NVIDIA Corp. soared 3.3% to $133.85, and Advanced Micro Devices jumped 3.6% to $116.50 after the two artificial intelligence-linked companies were deemed beneficiaries of a potential trade deal with Saudi Arabia.
S&P 500 Turns Positive Amid US-China Trade Truce
Barry Adams
14 May, 2025
New York City
Wall Street indexes flatlined on Wednesday, and tech stocks halted a five-day rally.
The S&P 500 index edged up 0.01%, and the Nasdaq Composite advanced 0.02%, following positive market sentiment for the last five trading sessions.
Investors breathed a sigh of relief after the U.S. and China struck a deal to de-escalate trade tensions and trimmed down previously announced sky-high tariffs, but structural issues surrounding bilateral trade are still unresolved.
The U.S. rolled back tariffs on packages arriving from China to 54% from the previously announced 120%, and China removed its ban on the purchase of Boeing airplanes.
The latest measures are likely to improve sentiment on Wall Street, but the fact remains that China and the U.S. are far apart on tariffs.
Moreover, China has reduced its reliance on the U.S. markets by diversifying its manufacturing locations and accelerated its exports in other markets in the ASEAN region, the Middle East, and Latin America.
Trade uncertainty is likely to return in the weeks ahead, as China ramps up its agricultural imports from Brazil, Argentina, Peru, Thailand, and Vietnam.
But the U.S. companies have deepened their reliance on Chinese companies for consumer goods, electrical appliances, raw materials, and intermediate goods.
U.S. Stock Movers
American Eagle Outfitters dropped 11.5% to $11.26 after the company withdrew its annual outlook, citing tariff uncertainties.
In addition, the apparel retailer released its preliminary quarterly results and reported a revenue decline of about 5% to $1.1 billion and an operating loss of $85 million.
Abercrombie & Fitch declined 2.3% to $79.52. Urban Outfitters fell 0.8% to $58.89, and GAP decreased 1% to $25.15.
NVIDIA Corp. soared 3.3% to $133.85, and Advanced Micro Devices jumped 3.6% to $116.50 after the two artificial intelligence-linked companies were deemed beneficiaries of a potential trade deal with Saudi Arabia.
European Markets Hover at 2-Month Highs with Earnings In Focus
Bridgette Randall
14 May, 2025
London
Stock market indexes in Europe lacked direction as investors remained cautious about the constantly changing U.S. trade stance and policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London traded in a tight range amid fresh worries of protracted trade tensions between the European Union and the U.S.
Despite the waning enthusiasm about the U.S.-China "trade deal" announced on Monday, investors worried that the longer-term impact of the sharp escalation of tariffs is negative for the global economy and international trade.
Meanwhile, the U.S. lowered its maximum duty on Chinese goods shipped under the de minimis program to 54% from 120%, and China removed its ban on purchases of Boeing aircraft.
International trade observers fear that Chinese companies are likely to target markets in the European Union to make up for lost markets in the U.S.
Europe Indexes and Yields
The DAX index increased by 0.2% to 23,681.63, the CAC-40 index edged lower 0.2% to 7,861.07, and the FTSE 100 index advanced 0.01% to 8,603.67.
The yield on 10-year German bonds inched higher to 2.68%, French bonds decreased to 3.35%, the UK gilts moved down to 4.66%, and Italian bonds edged lower to 3.68%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was higher and traded at 83.96 Swiss cents.
Brent crude decreased $0.33 to $66.29 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €35.60 per MWh.
Europe Movers
Burberry plc soared 8.1% to 895.20 pence after the UK-based fashion apparel and accessories retailer reported better-than-expected fiscal 2025 results and plans to cut 1,700 jobs around the world.
TUI Group fell 10.4% to €6.80 despite the German travel and tourism company reporting strong fiscal second-quarter results and confirming its annual outlook.
The company guided fiscal 2025 revenue to increase between 5% and 10% and operating earnings to rise between 7% and 10% from a year ago.
Alstom plunged 16.2% to €19.10 after the French mobility engineering company reported strong fiscal 2025 results, but the company's outlook for the current year fell short of investor expectations.
The company guided fiscal 2026 sales to increase between 3% and 5%, EBIT margin of 7%, and free cash flow between €200 million and €400 million.
European Markets Hover at 2-Month Highs with Earnings In Focus
Bridgette Randall
14 May, 2025
London
Stock market indexes in Europe lacked direction as investors remained cautious about the constantly changing U.S. trade stance and policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London traded in a tight range amid fresh worries of protracted trade tensions between the European Union and the U.S.
Despite the waning enthusiasm about the U.S.-China "trade deal" announced on Monday, investors worried that the longer-term impact of the sharp escalation of tariffs is negative for the global economy and international trade.
Meanwhile, the U.S. lowered its maximum duty on Chinese goods shipped under the de minimis program to 54% from 120%, and China removed its ban on purchases of Boeing aircraft.
International trade observers fear that Chinese companies are likely to target markets in the European Union to make up for lost markets in the U.S.
Europe Indexes and Yields
The DAX index increased by 0.2% to 23,681.63, the CAC-40 index edged lower 0.2% to 7,861.07, and the FTSE 100 index advanced 0.01% to 8,603.67.
The yield on 10-year German bonds inched higher to 2.68%, French bonds decreased to 3.35%, the UK gilts moved down to 4.66%, and Italian bonds edged lower to 3.68%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was higher and traded at 83.96 Swiss cents.
Brent crude decreased $0.33 to $66.29 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €35.60 per MWh.
Europe Movers
Burberry plc soared 8.1% to 895.20 pence after the UK-based fashion apparel and accessories retailer reported better-than-expected fiscal 2025 results and plans to cut 1,700 jobs around the world.
TUI Group fell 10.4% to €6.80 despite the German travel and tourism company reporting strong fiscal second-quarter results and confirming its annual outlook.
The company guided fiscal 2025 revenue to increase between 5% and 10% and operating earnings to rise between 7% and 10% from a year ago.
Alstom plunged 16.2% to €19.10 after the French mobility engineering company reported strong fiscal 2025 results, but the company's outlook for the current year fell short of investor expectations.
The company guided fiscal 2026 sales to increase between 3% and 5%, EBIT margin of 7%, and free cash flow between €200 million and €400 million.
Europe Movers: Alstom, Bilfinger, Burberry, Daimler Truck, Experian, Hapag-Lloyd, TUI Group
Inga Muller
14 May, 2025
Frankfurt
Experian plc eased 0.9% to 3.944 pence after the UK-based data and analytics company reported first-half results.
Revenue jumped to $3.62 billion from $3.42 billion, EBIT increased to $1.01 billion from $928 million, and earnings per share rose to 76 cents from 70.4 cents a year ago.
The company guided full-year revenue to grow between 6% and 8%, compared to $7.10 billion in 2024.
The company announced dividend growth of 7% and plans to repurchase $150 million worth of its own shares.
Hapag-Lloyd AG advanced 2.7% to €151.70 after the German container shipping company reported first-quarter 2025 results.
Revenue jumped to €5.05 billion from €4.26 billion, profit surged to €445.9 million from €298.0 million, and diluted earnings per share rose to €2.51 from €1.67 a year ago.
The company guided full-year EBIT to be between breakeven and €1.5 billion, compared to €2.6 billion in 2024, and EBITDA between €2.4 billion and €3.9 billion, compared to €4.6 billion a year earlier.
Daimler Truck Holding AG gained 0.4% to €39.94 after the German vehicle manufacturer reported first-quarter 2025 results.
Revenue declined to €12.45 billion from €13.26 billion, net profit dropped to €770 million from €800 million, and diluted earnings per share fell to 99 cents from €1.00 a year ago.
As of January 1, Daimler Truck integrated its business in China and India into the Mercedes-Benz Trucks segment.
In other business developments, the company delivered the first all-electric RIZON trucks in Canada during the quarter.
The company will propose an unchanged dividend of €1.90 per share for 2024.
Alstom plunged 13.6% to €19.60 after the French mobility engineering company reported strong fiscal 2025 results, but the company's outlook for the current year fell short of investor expectations.
Sales climbed to €18.49 billion from €17.62 billion, and adjusted EBIT rose to €1.18 billion from €997 million a year ago.
Adjusted net profit increased to €498 million from €44 million a year earlier.
The company guided full-year 2026 revenue to grow between 3% and 5% year-over-year.
“The group has produced 4,383 cars during the year and is preparing for the production ramp-up in Germany and France in coming years,” the company said in a release to investors.
In Europe, the company recorded an order intake of €13.1 billion during the fiscal year 2025, compared to €11.3 billion in the previous year.
In the Americas, Alstom reported significant growth in order intake, while orders in Asia Pacific declined.
As of March 31, the backlog stood at €95 billion, providing the company with strong visibility over future sales.
TUI Group slipped 6.6% to €7.10 after the German travel and tourism company reported second-quarter 2025 results.
Revenue increased 1.5% to €3.7 billion from €3.6 billion, and EBIT loss widened to €206.8 million from a loss of €188.7 million a year ago.
Net loss expanded to €306 million from €294 million in the previous year.
The company guided full-year revenue to increase by 5% to 10%, compared to €23.27 billion in 2024, and EBIT to grow between 7% and 10%, compared to €1.3 billion a year earlier.
Bilfinger SE gained 0.9% to €75.03 after the German industrial services provider reported first-quarter 2025 results.
Revenue jumped 17% to €1.27 billion from €1.09 billion, net profit climbed 27% to €31.6 million from €24.9 million, and earnings per share rose 27% to 84 cents from 66 cents a year ago.
The company guided full-year revenue to be between €5.10 billion and €5.70 billion, compared to €5.04 billion in 2024.
Burberry plc soared 9.5% to 905.00 pence after the UK-based fashion apparel and accessories retailer reported better-than-expected fiscal 2025 results, and plans to cut 1,700 jobs around the world.
Revenue declined to £2.46 billion from £2.97 billion, net income swung to a loss of £75 million from a profit of £270 million, and diluted earnings per share swung to a loss of 20.9 pence from a profit of 73.9 pence a year ago.
Europe Movers: Alstom, Bilfinger, Burberry, Daimler Truck, Experian, Hapag-Lloyd, TUI Group
Inga Muller
14 May, 2025
London
Experian plc eased 0.9% to 3.944 pence after the UK-based data and analytics company reported first-half results.
Revenue jumped to $3.62 billion from $3.42 billion, EBIT increased to $1.01 billion from $928 million, and earnings per share rose to 76 cents from 70.4 cents a year ago.
The company guided full-year revenue to grow between 6% and 8%, compared to $7.10 billion in 2024.
The company announced dividend growth of 7% and plans to repurchase $150 million worth of its own shares.
Hapag-Lloyd AG advanced 2.7% to €151.70 after the German container shipping company reported first-quarter 2025 results.
Revenue jumped to €5.05 billion from €4.26 billion, profit surged to €445.9 million from €298.0 million, and diluted earnings per share rose to €2.51 from €1.67 a year ago.
The company guided full-year EBIT to be between breakeven and €1.5 billion, compared to €2.6 billion in 2024, and EBITDA between €2.4 billion and €3.9 billion, compared to €4.6 billion a year earlier.
Daimler Truck Holding AG gained 0.4% to €39.94 after the German vehicle manufacturer reported first-quarter 2025 results.
Revenue declined to €12.45 billion from €13.26 billion, net profit dropped to €770 million from €800 million, and diluted earnings per share fell to 99 cents from €1.00 a year ago.
As of January 1, Daimler Truck integrated its business in China and India into the Mercedes-Benz Trucks segment.
In other business developments, the company delivered the first all-electric RIZON trucks in Canada during the quarter.
The company will propose an unchanged dividend of €1.90 per share for 2024.
Alstom plunged 13.6% to €19.60 after the French mobility engineering company reported strong fiscal 2025 results, but the company's outlook for the current year fell short of investor expectations.
Sales climbed to €18.49 billion from €17.62 billion, and adjusted EBIT rose to €1.18 billion from €997 million a year ago.
Adjusted net profit increased to €498 million from €44 million a year earlier.
The company guided full-year 2026 revenue to grow between 3% and 5% year-over-year.
“The group has produced 4,383 cars during the year and is preparing for the production ramp-up in Germany and France in coming years,” the company said in a release to investors.
In Europe, the company recorded an order intake of €13.1 billion during the fiscal year 2025, compared to €11.3 billion in the previous year.
In the Americas, Alstom reported significant growth in order intake, while orders in Asia Pacific declined.
As of March 31, the backlog stood at €95 billion, providing the company with strong visibility over future sales.
TUI Group slipped 6.6% to €7.10 after the German travel and tourism company reported second-quarter 2025 results.
Revenue increased 1.5% to €3.7 billion from €3.6 billion, and EBIT loss widened to €206.8 million from a loss of €188.7 million a year ago.
Net loss expanded to €306 million from €294 million in the previous year.
The company guided full-year revenue to increase by 5% to 10%, compared to €23.27 billion in 2024, and EBIT to grow between 7% and 10%, compared to €1.3 billion a year earlier.
Bilfinger SE gained 0.9% to €75.03 after the German industrial services provider reported first-quarter 2025 results.
Revenue jumped 17% to €1.27 billion from €1.09 billion, net profit climbed 27% to €31.6 million from €24.9 million, and earnings per share rose 27% to 84 cents from 66 cents a year ago.
The company guided full-year revenue to be between €5.10 billion and €5.70 billion, compared to €5.04 billion in 2024.
Burberry plc soared 9.5% to 905.00 pence after the UK-based fashion apparel and accessories retailer reported better-than-expected fiscal 2025 results, and plans to cut 1,700 jobs around the world.
Revenue declined to £2.46 billion from £2.97 billion, net income swung to a loss of £75 million from a profit of £270 million, and diluted earnings per share swung to a loss of 20.9 pence from a profit of 73.9 pence a year ago.
U.S. Movers: JD.com, Tencent
Scott Peters
14 May, 2025
New York City
Tencent Music Entertainment Group surged 2.9% to $14.73 after the Chinese online music and audio entertainment platform reported first-quarter 2025 results.
Revenue jumped to 5.80 billion yuan from 5.01 billion yuan, profit climbed to 4.29 billion yuan from 1.42 billion yuan, and diluted earnings per share rose to 2.77 yuan from 0.91 yuan a year ago.
Revenue from music subscriptions increased 16.6% to 4.22 billion yuan, and the number of paying users edged up 8.3% to 122.9 million.
During the quarter, the music company repurchased a total of 5.9 million ADSs at an average price of $10.8 per ADS for a total of $64.5 million and paid a cash dividend of 18 cents per ADS, or 9 cents per ordinary share, for a total of $275 million in April.
JD.com Inc. soared 5.5% to $38.04 after the Chinese supply chain-based technology and service provider reported first-quarter 2025 results.
Revenue jumped to 301.08 billion yuan from 260.05 billion yuan, net income edged up to 10.89 billion yuan from 7.13 billion yuan, and diluted earnings per share rose to 3.59 yuan from 2.27 yuan a year ago.
Net income per ADS increased to 7.19 yuan from 4.53 yuan a year earlier.
During the quarter, the company launched its food delivery business and further strengthened its position as the first online marketplace for new and specialty medicine launches.
In addition, the company expanded its logistics services in Warsaw, Poland, and in Hong Kong.
U.S. Movers: JD.com, Tencent
Scott Peters
14 May, 2025
New York City
Tencent Music Entertainment Group surged 2.9% to $14.73 after the Chinese online music and audio entertainment platform reported first-quarter 2025 results.
Revenue jumped to 5.80 billion yuan from 5.01 billion yuan, profit climbed to 4.29 billion yuan from 1.42 billion yuan, and diluted earnings per share rose to 2.77 yuan from 0.91 yuan a year ago.
Revenue from music subscriptions increased 16.6% to 4.22 billion yuan, and the number of paying users edged up 8.3% to 122.9 million.
During the quarter, the music company repurchased a total of 5.9 million ADSs at an average price of $10.8 per ADS for a total of $64.5 million and paid a cash dividend of 18 cents per ADS, or 9 cents per ordinary share, for a total of $275 million in April.
JD.com Inc. soared 5.5% to $38.04 after the Chinese supply chain-based technology and service provider reported first-quarter 2025 results.
Revenue jumped to 301.08 billion yuan from 260.05 billion yuan, net income edged up to 10.89 billion yuan from 7.13 billion yuan, and diluted earnings per share rose to 3.59 yuan from 2.27 yuan a year ago.
Net income per ADS increased to 7.19 yuan from 4.53 yuan a year earlier.
During the quarter, the company launched its food delivery business and further strengthened its position as the first online marketplace for new and specialty medicine launches.
In addition, the company expanded its logistics services in Warsaw, Poland, and in Hong Kong.
Japan Stock Indexes Hover Near 6-Week Highs, PPI Extends Positive Streak In April
Akira Ito
14 May, 2025
Tokyo
Japan's stock market indexes declined and trimmed this week's gains as investors worried about the U.S. trade policy.
The Nikkei 225 Stock Average declined 0.4%, and the broader Topix index fell 0.6% amid uncertainties about the U.S.-Japan trade negotiations.
Asia's stock market indexes traded sideways after the initial enthusiasm surrounding the U.S.-China tariff pause faded.
The Topix index has rebounded about 25%, and the Nikkei 225 Stock Average retraced more than 20% from the tariff lows reached on April 7.
Producer Price Inflation Extends Positive Streak In April
Japan's producer prices rose for the 35th consecutive month in April, the Bank of Japan reported Wednesday.
The producer price index increased at an annual pace of 4.0% in April, from the downwardly revised 4.2% in March.
The measure of wholesale inflation rose at the slowest pace since December.
The increase in the measure of wholesale inflation was driven by the slower annual increase in coal and petroleum inflation to 6.6% from 8.8% and in transportation equipment to 1.6% from 1.8% in the previous month, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.4% to 38,019.76, and the broader Topix index decreased 0.6% to 38,019.76.
Vehicle exporters and semiconductor equipment makers led decliners in Tokyo trading.
Advantest Corp. jumped 4.5% to ¥7,506.0, Tokyo Electron gained 0.8% to ¥24,195.0, and Disco Corp. soared 11% to ¥37,000.0.
Marubeni Corp. decreased 0.7% to ¥2,770.50, Itochu Corp. fell 1.7% to ¥7,487.0, and Mitsui & Company fell 0.2% to ¥2,928.0.
Nippon Yusen KK fell 1.2% to ¥5,070.0, Mitsui O.S.K. Ltd. decreased 1.7% to ¥4,992.0, and Kawasaki Kisen Kaisha Ltd. declined 0.2% to ¥2,110.50.
Japan Stock Indexes Hover Near 6-Week Highs, PPI Extends Positive Streak In April
Akira Ito
14 May, 2025
Tokyo
Japan's stock market indexes declined and trimmed this week's gains as investors worried about the U.S. trade policy.
The Nikkei 225 Stock Average declined 0.4%, and the broader Topix index fell 0.6% amid uncertainties about the U.S.-Japan trade negotiations.
Asia's stock market indexes traded sideways after the initial enthusiasm surrounding the U.S.-China tariff pause faded.
The Topix index has rebounded about 25%, and the Nikkei 225 Stock Average retraced more than 20% from the tariff lows reached on April 7.
Producer Price Inflation Extends Positive Streak In April
Japan's producer prices rose for the 35th consecutive month in April, the Bank of Japan reported Wednesday.
The producer price index increased at an annual pace of 4.2% in April, from the downwardly revised 4.0% in March.
The measure of wholesale inflation rose at the slowest pace since December.
The increase in the measure of wholesale inflation was driven by the slower annual increase in coal and petroleum inflation to 6.6% from 8.8% and in transportation equipment to 1.6% from 1.8% in the previous month, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.4% to 38,019.76, and the broader Topix index decreased 0.6% to 38,019.76.
Vehicle exporters and semiconductor equipment makers led decliners in Tokyo trading.
Advantest Corp. jumped 4.5% to ¥7,506.0, Tokyo Electron gained 0.8% to ¥24,195.0, and Disco Corp. soared 11% to ¥37,000.0.
Marubeni Corp. decreased 0.7% to ¥2,770.50, Itochu Corp. fell 1.7% to ¥7,487.0, and Mitsui & Company fell 0.2% to ¥2,928.0.
Nippon Yusen KK fell 1.2% to ¥5,070.0, Mitsui O.S.K. Ltd. decreased 1.7% to ¥4,992.0, and Kawasaki Kisen Kaisha Ltd. declined 0.2% to ¥2,110.50.
Hong Kong Stocks Extend Rebound to 20% from Tariff Lows, JD.com's Earnings Lift Sentiment
Li Chen
14 May, 2025
Hong Kong
China and Hong Kong stock market indexes advanced to two-month highs as investors shifted their focus to corporate earnings.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index advanced 0.3% after JD.com reported a sharp jump in earnings and sales in the latest quarter.
The Hang Seng index has rebounded 20% from the April 7 low and reached the level last seen on March 28.
In 2025, the Hang Seng index has advanced 19.4%, and the mainland-focused CSI 300 index has gained 2.3%.
Investors are awaiting results from Alibaba Group Holding and Tencent Holdings later in the week.
Optimism returned in early trading on Wednesday, as investors remained confident about the earnings outlook for large technology companies.
The pause in tariffs for 90 days has swung the manufacturing sector back into full swing for now, but trade relations with the U.S. are likely to be rocky in the years ahead.
Manufacturers are ramping up production and are looking to warehouse goods in Vietnam and Mexico amid an uncertain tariff outlook and the turbulent policies of the Trump administration.
The makers of toys, consumer goods, office products, apparel and accessories, and electrical appliances are looking to reduce their reliance on the U.S. market.
The U.S. accounts for 14.5% of total Chinese exports, compared to 19% in 2020, as companies build sales in the ASEAN region, in the Middle East, and in South America.
China Indexes and Stocks
The Hang Seng index increased 1.4% to 23,425.47, and the mainland-focused CSI 300 index added 0.3% to 3,907.26.
JD.com jumped 2.9% to HK $140.70 after the e-commerce company reported a 16% increase in sales in the first quarter.
Tencent Holdings Ltd. advanced 2% to HK $516.0 ahead of the company's first-quarter results on Wednesday.
Alibaba Group Holding gained 1.6% to HK $128.10 ahead of the company's results on Thursday and extended its five-week advance to 32%.
Hong Kong Stocks Extend Rebound to 20% from Tariff Lows, JD.com's Earnings Lift Sentiment
Li Chen
14 May, 2025
Hong Kong
China and Hong Kong stock market indexes advanced to two-month highs as investors shifted their focus to corporate earnings.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index advanced 0.3% after JD.com reported a sharp jump in earnings and sales in the latest quarter.
The Hang Seng index has rebounded 20% from the April 7 low and reached the level last seen on March 28.
In 2025, the Hang Seng index has advanced 19.4%, and the mainland-focused CSI 300 index has gained 2.3%.
Investors are awaiting results from Alibaba Group Holding and Tencent Holdings later in the week.
Optimism returned in early trading on Wednesday, as investors remained confident about the earnings outlook for large technology companies.
The pause in tariffs for 90 days has swung the manufacturing sector back into full swing for now, but trade relations with the U.S. are likely to be rocky in the years ahead.
Manufacturers are ramping up production and are looking to warehouse goods in Vietnam and Mexico amid an uncertain tariff outlook and the turbulent policies of the Trump administration.
The makers of toys, consumer goods, office products, apparel and accessories, and electrical appliances are looking to reduce their reliance on the U.S. market.
The U.S. accounts for 14.5% of total Chinese exports, compared to 19% in 2020, as companies build sales in the ASEAN region, in the Middle East, and in South America.
China Indexes and Stocks
The Hang Seng index increased 1.4% to 23,425.47, and the mainland-focused CSI 300 index added 0.3% to 3,907.26.
JD.com jumped 2.9% to HK $140.70 after the e-commerce company reported a 16% increase in sales in the first quarter.
Tencent Holdings Ltd. advanced 2% to HK $516.0 ahead of the company's first-quarter results on Wednesday.
Alibaba Group Holding gained 1.6% to HK $128.10 ahead of the company's results on Thursday and extended its five-week advance to 32%.
S&P 500 and Nasdaq Extend Rally After Consumer Inflation Unexpectedly Eased In April
Barry Adams
13 May, 2025
New York City
Wall Street indexes inched higher in early trading after consumer price inflation eased for the third consecutive month.
The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.6% after consumer price inflation unexpectedly fell in April.
The annual consumer price inflation in April edged lower to 2.3% from 2.4% in March, according to the latest data released by the U.S. Bureau of Labor Statistics.
The core rate of inflation, which excludes volatile food and energy prices, held steady at an annual pace of 2.8%.
The decline in overall inflation was driven by the 3.7% decrease in energy prices, but the food price index increased 2.8%, and the shelter index held steady at 4%.
Gasoline prices fell at a faster annual pace of 11.8% compared to the 9.8% decline in the previous month, but natural gas prices accelerated to 15.7% from the 9.4% annual pace in the previous month.
In Monday's trading, the S&P 500 index and the Nasdaq Composite indexes soared 4% after the U.S. backed down from its proposed sky-high tariffs in early April, and China agreed to lower its retaliatory tariffs.
The two sides agreed to pause tariffs for 90 days and search for a longer-term agreement.
Chinese negotiators held firm on their demands and forced the Trump administration to roll back the 145% proposed in early April to the 30% level announced on March 4.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.3% to 5,859.38, the Nasdaq Composite edged up 0.6% to 18,823.49, and the Russell 2000 index advanced 4.0% to 2,103.97.
The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 4.45%, and 30-year Treasury bonds declined to 4.90%.
WTI crude oil increased $0.78 to $62.73 a barrel, and natural gas prices edged higher by $0.04 to $3.69 a thermal unit. Gold increased by $4.32 to 3,240.35 an ounce, and silver edged up by $0.05 to $32.62.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.44 to 101.35 and traded at a two-year high.
U.S. Stock Movers
Coinbase Global Inc. soared 10% to 227.90, and the cryptocurrency trading platform operator was selected to be included in the S&P 500 index.
Discover Financial Services declined 2.6% to $197.24, and the credit card company was selected to be dropped from the S&P 500 index before the start of trading on May 19.
UnitedHealth Group plunged 9.5% to $343.80 after the company suspended its 2025 outlook because of the higher-than-expected medical expenditures.
Meanwhile, the company said Chief Executive Andrew Witty has decided to step down from the office, effective immediately, for personal reasons.
S&P 500 and Nasdaq Extend Rally After Consumer Inflation Unexpectedly Eased
Barry Adams
13 May, 2025
New York City
Wall Street indexes inched higher in early trading after consumer price inflation eased for the third consecutive month.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2% after consumer price inflation unexpectedly fell in April.
The annual consumer price inflation in April edged lower to 2.3% from 2.4% in March, according to the latest data released by the U.S. Bureau of Labor Statistics.
The core rate of inflation, which excludes volatile food and energy prices, held steady at an annual pace of 2.8%.
The decline in overall inflation was driven by the 3.7% decrease in energy prices, but the food price index increased 2.8%, and the shelter index held steady at 4%.
Gasoline prices fell at a faster annual pace of 11.8% compared to the 9.8% decline in the previous month, but natural gas prices accelerated to 15.7% from the 9.4% annual pace in the previous month.
In Monday's trading, the S&P 500 index and the Nasdaq Composite indexes soared 4% after the U.S. backed down from its proposed sky-high tariffs in early April, and China agreed to lower its retaliatory tariffs.
The two sides agreed to pause tariffs for 90 days and search for a longer-term agreement.
Chinese negotiators held firm on their demands and forced the Trump administration to roll back the 145% proposed in early April to the 30% level announced on March 4.
U.S. Stock Movers
Coinbase Global Inc. soared 10% to 227.90, and the cryptocurrency trading platform operator was selected to be included in the S&P 500 index.
Discover Financial Services declined 2.6% to $197.24, and the credit card company was selected to be dropped from the S&P 500 index before the start of trading on May 19.
UnitedHealth Group plunged 9.5% to $343.80 after the company suspended its 2025 outlook because of the higher-than-expected medical expenditures.
Meanwhile, the company said Chief Executive Andrew Witty has decided to step down from the office, effective immediately, for personal reasons.
European Markets Lack Direction, Bond Yields Hold Firm
Bridgette Randall
13 May, 2025
London
European markets lacked direction on Tuesday, and investor enthusiasm waned amid worries of prolonged uncertainty about the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, London, and Milan traded in a tight range as investors awaited earnings from leading chemical and pharmaceutical companies.
Investors turned cautious a day after the U.S. and China announced a preliminary trade negotiation framework and paused the previously announced excessive tariffs for 90 days.
The de-escalation of tensions between China and the U.S. raised hopes that the two largest economies in the world may avert a wider trade war, but investors in Europe remained skeptical.
Between April 2 and 9, the U.S. president announced several tariffs, or import taxes, on all shipments but kept the highest rates for China.
Donald Trump repeatedly threatened to keep sky-high tariffs of as much as 145% on Chinese goods unless China buys more goods from the U.S. and lowers import duties.
Over the weekend, the U.S. backed down from its aggressive stance and agreed to pause the previously announced, but not implemented, for 90 days and keep tariff rates at 30%, as declared on March 4.
European investors worried that incoherent policies and the chaotic nature of the Trump administration may send another shock wave to global financial markets in the months ahead.
In addition, Donald Trump said on Monday he plans to sign an executive order demanding pharmaceutical companies lower drug prices between 30% and 80%.
Europe Indexes and Yields
The DAX index increased by 0.03% to 23,572.57, the CAC-40 index edged lower 0.1% to 7,840.93, and the FTSE 100 index advanced 0.1% to 8,617.76.
The yield on 10-year German bonds inched higher to 2.66%, French bonds increased to 3.33%, UK gilts moved up to 4.66%, and Italian bonds edged higher to 3.68%.
The euro increased to $1.11; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 84.26 Swiss cents.
Brent crude increased $0.11 to $65.07 a barrel, and the Dutch TTF natural gas was lower by €0.10 to €35.04 per MWh.
Europe Movers
Jenoptik AG dropped 3.7% to €18.74, and the Germany-based photonics company reported weaker-than-expected quarterly results.
The photonics company said profit in the first quarter plunged 35%, and the company guided flat revenue in the current year.
Carl Zeiss Meditec AG increased 0.7% to €62.95, and the German medical technology company reported stable earnings in the first half.
The company reiterated its stable earnings outlook for the fiscal second half but warned of market uncertainty rooted in the U.S. trade policy.
Bayer AG rose 9.6% to €26.38, and the German chemical and crop fertilizer company reported a smaller than expected decline in earnings.
Sales in the first quarter eased 0.2% to €13.74 billion from €13.77 billion, and net income fell to €1.3 billion from €2 billion, and diluted earnings per share declined to €1.32 from €2.04 a year ago.
"We are continuously evaluating the impacts of the current geopolitical developments, especially in relation to potential tariffs from the US government. Based on current calculations of the financial effects, we do not see a need to revise our full-year guidance.
However, there is considerable uncertainty concerning the future impacts of any potential further developments in relation to this issue, as well as with respect to exchange-rate developments," the company said in a statement to investors.