European Markets Fall Amid Renewed U.S. Tariff Threats

Bridgette Randall
02 Jun, 2025
London

European stock market indexes turned lower amid renewed trade tensions with the U.S. 

Benchmark indexes in Frankfurt, Paris, Milan, and London decreased amid dimming prospects of a trade agreement in the near future. 

The U.S. president reignited trade tensions after Donald Trump announced he would impose a 50% duty on steel imports from key partners from June 4.  

The European Union criticized the proposed duty undermines the efforts to reach a "negotiated solution."  

In addition, the U.S. president accused China of violating a verbal agreement struck last month in Geneva without offering any concrete evidence.  

Constantly changing U.S. trade policy has disrupted global supply chains, and companies in Europe fear that the Chinese suppliers will accelerate dumping of unsold goods into world markets. 

Europe Indexes and Yields

The DAX index decreased by 0.1% to 23,978.66, the CAC-40 index edged lower 0.2% to 7,737.43, and the FTSE 100 index advanced 0.1% to 8,780.12.

The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.19%, UK gilts moved up to 4.68%, and Italian bonds edged higher to 3.53%.

The euro increased to $1.14; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.91 Swiss cents.

Brent crude increased $1.65 to $64.43 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.30 per MWh.

Europe Stock Movers 

Salzgitter AG declined 0.9% to €20.82, and ThyssenKrupp AG dropped 2.5% to €8.37. 

Defense and security-related stocks advanced for the ninth week in a row after Ukraine stepped up drone attacks deep inside Russia. 

Rheinmetall AG gained 0.8% to €1,922.0, MTU Aero Engines rose 0.3% to €350.20, Dassault Aviation SA added 1.4% to €323.40, and Rolls-Royce Holdings PLC added 0.2% to 868.60 pence. 

Europe Mar

Bridgette Randall
02 Jun, 2025
London

European stock market indexes turned lower amid renewed trade tensions with the U.S. 

Benchmark indexes in Frankfurt, Paris, Milan, and London decreased amid dimming prospects of a trade agreement in the near future. 

The U.S. president reignited trade tensions after Donald Trump announced he would impose a 50% duty on steel imports from key partners from June 4.  

The European Union criticized the proposed duty undermines the efforts to reach a "negotiated solution."  

In addition, the U.S. president accused China of violating a verbal agreement struck last month in Geneva without offering any concrete evidence.  

Constantly changing U.S. trade policy has disrupted global supply chains, and companies in Europe fear that the Chinese suppliers will accelerate dumping of unsold goods into world markets. 

Europe Indexes and Yields

The DAX index decreased by 0.1% to 23,978.66, the CAC-40 index edged lower 0.2% to 7,737.43, and the FTSE 100 index advanced 0.1% to 8,780.12.

The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.19%, UK gilts moved up to 4.68%, and Italian bonds edged higher to 3.53%.

The euro increased to $1.14; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.91 Swiss cents.

Brent crude increased $1.65 to $64.43 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.30 per MWh.

Europe Stock Movers 

Salzgitter AG declined 0.9% to €20.82, and ThyssenKrupp AG dropped 2.5% to €8.37. 

Defense and security-related stocks advanced for the ninth week in a row after Ukraine stepped up drone attacks deep inside Russia. 

Rheinmetall AG gained 0.8% to €1,922.0, MTU Aero Engines rose 0.3% to €350.20, Dassault Aviation SA added 1.4% to €323.40, and Rolls-Royce Holdings PLC added 0.2% to 868.60 pence. 

Hang Seng Index Dropped 2% Amid Renewed Trade Tensions and Weak New Home Sales In May

Li Chen
02 Jun, 2025
Hong Kong

Stock market indexes in Hong Kong dropped at the fastest pace in two months following the weaker-than-expected home sales and renewed trade tensions with the U.S. 

The Hang Seng index decreased 2% after the U.S. president accused China of violating a verbal agreement in Switzerland without offering any concrete evidence. 

Mainland China's financial markets were closed to celebrate the Dragon Boat Festival, and trading is scheduled to resume on Tuesday.

Moreover, markets were on the defensive after residential property sales for the largest 100 developers rose 3.5% in May, according to data released by China Real Estate Information Corporation. 

Real estate sales generally pick up in May, but the increase was sharply lower than expected amid ongoing property market malaise and weak consumer sentiment.  

China Indexes and Stocks 

The Hang Seng index decreased 2.0% to 22,831.01, and the mainland China markets were closed for a holiday. 

The Dragon Boat Festival and Children's Day converged on the same weekend for the first time since 2014, lifting domestic travel by more than 100% for certain popular destinations. 

Sands China increased 2.6% to HK $15.82, and Galaxy Entertainment advanced 1.2% to HK $33.80. 

Gambling revenue in Macau jumped 5% in May to a record high since January 2020, according to local authorities. 

Hang Seng Index Dropped 2% Amid Renewed Trade Tensions and Weak New Home Sales In May

Li Chen
02 Jun, 2025
Hong Kong

Stock market indexes in Hong Kong dropped at the fastest pace in two months following the weaker-than-expected home sales and renewed trade tensions with the U.S. 

The Hang Seng index decreased 2% after the U.S. president accused China of violating a verbal agreement in Switzerland without offering any concrete evidence. 

Mainland China's financial markets were closed to celebrate the Dragon Boat Festival, and trading is scheduled to resume on Tuesday.

Moreover, markets were on the defensive after residential property sales for the largest 100 developers rose 3.5% in May, according to data released by China Real Estate Information Corporation. 

Real estate sales generally pick up in May, but the increase was sharply lower than expected amid ongoing property market malaise and weak consumer sentiment.  

China Indexes and Stocks 

The Hang Seng index decreased 2.0% to 22,831.01, and the mainland China markets were closed for a holiday. 

The Dragon Boat Festival and Children's Day converged on the same weekend for the first time since 2014, lifting domestic travel by more than 100% for certain popular destinations. 

Sands China increased 2.6% to HK $15.82, and Galaxy Entertainment advanced 1.2% to HK $33.80. 

Gambling revenue in Macau jumped 5% in May to a record high since January 2020, according to local authorities. 

S&P 500 and Nasdaq Face Headwinds as Tariff Uncertainty Weighs

Barry Adams
30 May, 2025
New York City

Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China. 

Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts. 

The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June. 

Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty. 

The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement. 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.4% to 5,888.56, the Nasdaq Composite edged down 0.6% to 19,067.13, and the Russell 2000 index declined 0.4% to 2,060.15.

The yield on 2-year Treasury notes edged higher to 3.95%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds advanced to 4.93%.

WTI crude oil decreased $0.11 to $60.83 a barrel, and natural gas prices edged higher by $0.02 to $3.54 a thermal unit.

Gold decreased by $19.04 to 3,299.01 an ounce, and silver edged down by $0.16 to $33.17.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.16 to 99.44 and traded at the lowest level since April 2022.

U.S. Stock Movers 

Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations. 

The specialty apparel retailer reported better-than-expected fiscal first  quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million. 

Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion. 

The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications. 

Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales. 

Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.

Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.

Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.

S&P 500 and Nasdaq Face Headwinds as Tariff Uncertainty Weighs

Barry Adams
30 May, 2025
New York City

Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China. 

Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts. 

The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June. 

Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty. 

The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement. 

U.S. Stock Movers 

Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations. 

The specialty apparel retailer reported better-than-expected fiscal first  quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million. 

Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion. 

The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications. 

Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales. 

Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.

Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.

Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.

Foot Locker Inc. traded flat at $23.93 after the footwear and apparel retailer swung to a loss in the fiscal first quarter of 2025.

Total sales were down 4.6% to $1.79 billion from $1.87 billion, net income swung to a loss of $363 million from a profit of $8 million, and diluted earnings per share swung to a loss of $3.81 from a profit of 9 cents a year ago.

Comparable sales decreased 2.6%, with comparable sales in the North American region declining 0.5% and in the international segment they were down 8.5%, led by softness in Foot Locker Europe.

Dick's Sporting Goods Inc. has agreed to acquire Foot Locker for $2.4 billion.

30 May, 2025

GAP Inc. plunged 14.8% to $23.80 after the specialty apparel company failed to meet analyst expectations in the fiscal first quarter of 2025 and warned of tariff-related costs in the future.

Revenue increased to $3.46 billion from $3.39 billion, net income climbed to $193 million from $158 million, and diluted earnings per share rose to 51 cents from 41 cents a year ago.

Comparable sales were up 2% from a year earlier, and online sales increased 6%, representing 39% of total net sales.

Excluding the potential impact from imposed tariffs, the company guided full-year net sales to grow between 1% and 2% from $15.1 billion and net interest income to decline to $15 million from $25 million in the previous year, respectively.

Furthermore, GAP plans to close approximately 35 stores during 2025, after closing 56 stores last year.

For the second quarter, the retailer estimated net sales to remain flat year-over-year.

30 May, 2025

Burlington Stores Inc. traded flat at $227.80 after the off-price department store retailer reported strong results for the fiscal first quarter of 2025.

Revenue increased to $2.50 billion from $2.36 billion, net income jumped to $100.83 million from $78.51 million, and diluted earnings per share rose to $1.58 from $1.22 a year ago.

Comparable store sales were flat, at the midpoint of guidance, and on top of 2% last year.

The company repurchased 445,285 shares of its own stock for $105 million during the quarter, and $158 million remained under repurchase authorization.

In addition, the company’s board of directors authorized the repurchase of up to an additional $500 million, which is authorized to be executed through May 2027.

Burlington Stores guided second-quarter sales to increase between 5% and 7%, compared to $2.46 billion, assuming comparable store sales will be breakeven to up 2%, and adjusted earnings per share between $1.20 and $1.30, compared to $1.24 a year ago, respectively.

For the full year, the retailer estimated sales to grow between 6% and 8%, compared to $10.62 billion, assuming comparable store sales will be breakeven to up 2%, and adjusted earnings per share between $8.70 and $9.30, compared to $8.35 in the previous year, respectively.

30 May, 2025

Li Auto Inc. gained 0.7% to $28.70 despite the China-based electric vehicle maker reporting sharply lower net earnings in the fiscal first quarter 2025.

Revenue declined to 25.63 billion yuan from 44.27 billion yuan, net income slumped to 592.56 million yuan from 3.52 billion yuan, and diluted earnings per share fell to 0.28 yuan from 1.65 yuan a year ago.

The company delivered 92,864 vehicles in the quarter, an increase of 15.5% from 80,400 vehicles a year earlier.

Li Auto guided second-quarter revenue to be between 32.5 billion yuan and 33.8 billion yuan, an increase of 2.5% to 6.7% from 31.7 billion yuan a year earlier.

The company also expects to deliver between 123,000 and 128,000 vehicles during the second quarter, an increase of 13.3% to 17.9% from 108,581 vehicles in the previous year.

30 May, 2025

Zscaler Inc. surged 4.9% to $263.54 after the cloud security provider reported higher revenue in the fiscal third quarter of 2025, but net income swung to a loss.

Revenue edged up to $678.03 million from $553.20 million, net income swung to a loss of $4.12 million from a profit of $19.12 million, and diluted earnings per share swung to a loss of 3 cents from a profit of 12 cents a year ago.

The company guided fourth-quarter revenue to be between $705 million and $707 million, compared to $592.9 million, and non-GAAP net income per share between 79 cents and 80 cents, compared to 88 cents a year earlier, respectively.

For the full year, the cyber security company estimated revenue to be between $2.659 billion and $2.661 billion, compared to $2.168 billion, and non-GAAP net income per share between $3.18 and $3.19, compared to $3.19 a year ago, respectively.

The company expects non-GAAP income from operations in the fourth quarter to range between $152 million and $154 million, compared to $140.6 million, and for the full year, it will be between $573 million and $575 million, compared to $508.1 million in 2024, respectively.

30 May, 2025

Costco Wholesale Corp. eased 0.4% to $1,004.99 despite the wholesale retailer reporting strong results for the fiscal third quarter of 2025.

Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.

Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.

Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.

30 May, 2025

Best Buy Co. Inc. inched up 0.01% to $66.33 after the consumer electronics retailer reported lower sales in the fiscal first quarter of 2026.

Revenue edged down to $8.77 billion from $8.85 billion, net earnings dropped to $202 million from $246 million, and diluted earnings per share fell to 95 cents from $1.13 a year ago.

The company guided full-year revenue to be between $41.1 billion and $41.9 billion, compared to $41.5 billion, and adjusted diluted earnings per share between $6.15 and $6.30, compared to $6.37 a year earlier, respectively.

During the first quarter, the retailer returned $302 million to shareholders through dividends of $202 million and share repurchases of $100 million, and the company expects to spend approximately $300 million on share repurchases during fiscal year 2026.

Best Buy will pay its next quarterly cash dividend of 95 cents per share on July 10 to shareholders on record on June 19.

30 May, 2025

Bath & Body Works Inc. gained 0.3% to $28.68 after the personal care products retailer reported strong results in the fiscal first quarter of 2025.

Net sales climbed to $1.42 billion from $1.38 billion, net income jumped to $105 million from $87 million, and diluted earnings per share rose to 49 cents from 38 cents a year ago.

The company maintained its full-year guidance of 1% to 3% growth, compared to $7.31 billion, and diluted earnings per share between $3.25 and $3.60, compared to $3.61 a year earlier, respectively, inclusive of current tariff rates.

For the second quarter, the retailer estimated net sales to be flat to up 2%, compared to $1.53 billion, and diluted earnings per share between 33 cents and 38 cents, compared to 68 cents a year ago, respectively.

30 May, 2025

U.S. Stocks Face Headwinds Amid Botched Tariff Pl

Barry Adams
30 May, 2025
New York City

Wall Street indexes wavered on the final day of the month amid Trump tariff uncertainty and lack of progress on the promised "hundreds of deals by June."

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2%, as Treasury Secretary Scott Bessant confirmed a lack of progress in convincing China. 

Moreover, Japanese negotiators are sending signals about the lack of priorities or a framework for trade negotiations, as Japanese vehicle makers resist 25% tariffs on passenger cars and parts. 

The Trump administration's botched import tax launch is beginning to show in earnings calls, and leading retailers confirmed stalled sales growth, higher costs from tariffs, and plans to increase retail prices as early as June. 

Burlington Stores, Macy's, Ross Stores, Best Buy, Gap, Target, and Walmart have withdrawn or lowered their annual outlook, citing tariffs and macroeconomic uncertainty. 

The Trump administration is forced to use presidential powers available through the Trade Act of 1974, but sector-specific tariffs for durations longer than six months are hard to implement. 

U.S. Stock Movers 

Gap Inc. dropped 14.5% to $23.83 after the company's fiscal second quarter flat revenue outlook fell short of market expectations. 

The specialty apparel retailer reported better-than-expected fiscal first  quarter revenue and earnings, and the company warned that tariff-related hits may cost between $100 million and $150 million. 

Dell Technologies advanced 0.9% to $114.58 after the computing device maker reported better-than-expected fiscal first quarter revenue of $23.38 billion. 

The company also lifted its annual earnings outlook, citing demand for its advanced servers for artificial intelligence applications. 

Costco Wholesale Corp. decreased 0.4% to $1,004.99, and the membership warehouse retailer operator reported better-than-expected revenue, earnings, and same-store sales. 

Revenue increased to $63.20 billion from $58.51 billion, net income jumped to $1.90 billion from $1.68 billion, and diluted earnings per share rose to $4.28 from $3.78 a year ago.

Comparable sales edged up 5.7% in the quarter, and e-commerce sales surged 14.8%.

Excluding the impacts from changes in gasoline prices and foreign exchange, comparable sales increased 8%, and e-commerce sales were up 15.7%.