Market Update
European Markets Hover Near Record Highs, Euro Edges Higher After U.S. Debt Rating Downgrade
Bridgette Randall
19 May, 2025
London
Stock market indexes in Europe declined as investors reviewed a flood of economic releases from China, and trade tensions rose after China slapped on new tariffs.
Benchmark indexes in Frankfurt, Paris, Milan, and London turned lower, bond yields inched higher, and the euro and the pound strengthened.
U.S. debt level and the persistent widening federal government budget deficits were in focus after Moody's Ratings lowered its credit rating on the U.S. debt.
Moody's lowered its rating by one notch to Aa1 from its top rating of Aaa, citing deteriorating U.S. fiscal governance and the lack of near-term downward trajectory of U.S. budget deficits.
Moody's is the last of the three major rating agencies to lower its U.S. debt rating, and S&P Global trimmed its rating in 2011, followed by Fitch Ratings in 2023.
Separately, China slapped up to 75% tariffs on plastic imports from the U.S., EU, Taiwan, and Japan, confirming that trade tensions are far from settled.
The new ruling imposes a 34.5% tariff on the EU plastic suppliers and places a 74.5% tariff on supplies from the U.S.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 23,746.22, the CAC-40 index edged lower 0.4% to 7,857.99, and the FTSE 100 index declined 0.4% to 8,647.86.
The yield on 10-year German bonds inched higher to 2.60%, French bonds increased to 3.28%, UK gilts moved up to 4.69%, and Italian bonds edged higher to 3.62%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.38 Swiss cents.
Brent crude decreased $0.30 to $65.11 a barrel, and the Dutch TTF natural gas was lower by €0.24 to €34.90 per MWh.
Europe Movers
Diageo plc advanced 1.4% to 2,183.0 pence after the alcoholic beverage maker reaffirmed its annual outlook, and net sales in the fiscal third quarter ending in March increased 2.9%.
The company estimated a tariff-related annual hit of £150 million if the current level of 10% U.S. tariffs remains in place on imports from the UK and the European Union.
BNP Paribas gained 1.7% to €76.06, and the French bank announced the launch of a €1.08 billion stock buyback program for 2025.
Ryanair Holdings plc jumped 6.8% to €23.25 after the Ireland-based discount airline reported mixed financial results and a rise in passenger traffic.
European Markets Hover Near Record Highs, Euro Edges Higher After U.S. Debt Rating Downgrade
Bridgette Randall
19 May, 2025
London
Stock market indexes in Europe declined as investors reviewed a flood of economic releases from China, and trade tensions rose after China slapped on new tariffs.
Benchmark indexes in Frankfurt, Paris, Milan, and London turned lower, bond yields inched higher, and the euro and the pound strengthened.
U.S. debt level and the persistent widening federal government budget deficits were in focus after Moody's Ratings lowered its credit rating on the U.S. debt.
Moody's lowered its rating by one notch to Aa1 from its top rating of Aaa, citing deteriorating U.S. fiscal governance and the lack of near-term downward trajectory of U.S. budget deficits.
Moody's is the last of the three major rating agencies to lower its U.S. debt rating, and S&P Global trimmed its rating in 2011, followed by Fitch Ratings in 2023.
Separately, China slapped up to 75% tariffs on plastic imports from the U.S., EU, Taiwan, and Japan, confirming that trade tensions are far from settled.
The new ruling imposes a 34.5% tariff on the EU plastic suppliers and places a 74.5% tariff on supplies from the U.S.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 23,746.22, the CAC-40 index edged lower 0.4% to 7,857.99, and the FTSE 100 index declined 0.4% to 8,647.86.
The yield on 10-year German bonds inched higher to 2.60%, French bonds increased to 3.28%, UK gilts moved up to 4.69%, and Italian bonds edged higher to 3.62%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.38 Swiss cents.
Brent crude decreased $0.30 to $65.11 a barrel, and the Dutch TTF natural gas was lower by €0.24 to €34.90 per MWh.
Europe Movers
Diageo plc advanced 1.4% to 2,183.0 pence after the alcoholic beverage maker reaffirmed its annual outlook, and net sales in the fiscal third quarter ending in March increased 2.9%.
The company estimated a tariff-related annual hit of £150 million if the current level of 10% U.S. tariffs remains in place on imports from the UK and the European Union.
BNP Paribas gained 1.7% to €76.06, and the French bank announced the launch of a €1.08 billion stock buyback program for 2025.
Ryanair Holdings plc jumped 6.8% to €23.25 after the Ireland-based discount airline reported mixed financial results and a rise in passenger traffic.
U.S.-Japan Trade Tensions Weighed On Stocks In Tokyo Trading
Akira Ito
19 May, 2025
Tokyo
Japan's stock market indexes turned lower in Monday's trading amid lingering U.S. trade policy uncertainties and renewed worries about the U.S. debt profile.
The Nikkei 225 Stock Average decreased 0.7%, and the broader Topix fell 0.1% after Moody's Ratings downgraded the U.S. debt rating.
Moody's lowered its credit rating by one notch from the top notch Aaa to Aa1 and changed the outlook to stable from negative.
"Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs," the rating agency noted in its update.
The latest budget proposal prompted the rating agency to revise its outlook, as budget analysts across all political ideologies raised concerns.
"We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration.
Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat. In turn, persistent, large fiscal deficits will drive the government's debt and interest burden higher," the rating agency added in its note.
The agency estimated federal debt to increase to around 134% of GDP and 9% of GDP by 2035, up from 98% and 6.4% in 2024, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.7% to 37,498.63, and the broader Topix index dropped 0.1% to 2,738.39.
Chipmakers led the decliners in Tokyo, tracking losses in Friday's trading on Wall Street in New York.
Advantest Corp. declined 2.9% to ¥7,066.0, Tokyo Electron decreased 1.7% to ¥23,065.0, and Disco Corp. fell 1.5% to ¥34,610.0.
Daiichi Sankyo Co. Ltd. surged 7.5% to ¥3,698.0, and the company's stock was the best performer in the benchmark index, arresting the broader decline in the Nikkei 225 Stock Average.
U.S.-Japan Trade Tensions Weighed On Stocks In Tokyo Trading
Akira Ito
19 May, 2025
Tokyo
Japan's stock market indexes turned lower in Monday's trading amid lingering U.S. trade policy uncertainties and renewed worries about the U.S. debt profile.
The Nikkei 225 Stock Average decreased 0.7%, and the broader Topix fell 0.1% after Moody's Ratings downgraded the U.S. debt rating.
Moody's lowered its credit rating by one notch from the top notch Aaa to Aa1 and changed the outlook to stable from negative.
"Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs," the rating agency noted in its update.
The latest budget proposal prompted the rating agency to revise its outlook, as budget analysts across all political ideologies raised concerns.
"We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration.
Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat. In turn, persistent, large fiscal deficits will drive the government's debt and interest burden higher," the rating agencies added in their note.
The agency estimated federal debt to increase to around 134% of GDP and 9% of GDP by 2035, up from 98% and 6.4% in 2024, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.7% to 37,498.63, and the broader Topix index dropped 0.1% to 2,738.39.
Chipmakers led the decliners in Tokyo, tracking losses in Friday's trading on Wall Street in New York.
Advantest Corp. declined 2.9% to ¥7,066.0, Tokyo Electron decreased 1.7% to ¥23,065.0, and Disco Corp. fell 1.5% to ¥34,610.0.
Daiichi Sankyo Co. Ltd. surged 7.5% to ¥3,698.0, and the company's stock was the best performer in the benchmark index, arresting the broader decline in the Nikkei 225 Stock Average.
Europe Movers: Engie, National Grid, Ryanair
Inga Muller
19 May, 2025
Frankfurt
Engie SA gained 0.4% to €18.37 after the French energy company reported first-quarter 2025 results.
Revenue climbed to €23.25 billion from €22.02 billion, and EBIT declined to €4.13 billion from €4.17 billion.
The company guided full-year net income to be between €4.4 billion and €5.0 billion, with EBIT excluding nuclear in the range of €8.0 billion to €9.0 billion.
In comparison, net income in 2024 was €5.5 billion, and EBIT excluding the nuclear segment was €8.9 billion.
During the first quarter, the energy company acquired two hydropower plants in Brazil and a portfolio of renewable assets in the U.K. and closed the nuclear transaction in Belgium.
The company reported strong activity in the renewables and battery energy storage system segment, with 8.5 GW under construction across more than 100 projects at the end of March.
National Grid plc gained 0.7% to 1,053.50 pence after the U.K. electricity and gas utility company reported fiscal 2025 results ending in March.
Revenue declined 7% to £18.38 billion from £19.85 billion, earnings climbed 20% to £3.45 billion from £2.88 billion, and earnings per share jumped 2% to 73.3 pence from 72.1 pence a year ago.
The dividend in 2025 was 46.72 pence per share, down 20% from 58.52 pence per share a year earlier.
The company guided fiscal 2026 earnings per share to be in line with the 6% to 8% compound annual growth range from the previous year’s baseline.
Ryanair Holdings plc dropped 5.3% to €21.78 after the U.K.-based airline company reported fiscal year 2025 results.
Revenue climbed 4% to €13.95 billion from €13.44 billion, profit declined 16% to €1.61 billion from €1.92 billion, and diluted earnings per share fell to €1.4549 from €1.6743 a year ago.
Traffic increased 9% to a record 200.2 million passengers from 183.7 million passengers a year earlier, supported by a 7% decline in fares and despite Boeing delivery delays.
The company guided fiscal year 2026 traffic to grow 3% to 206 million passengers.
During fiscal 2025, the company bought back over 77 million ordinary shares for a total of approximately €1.5 billion.
Stock Movers: Emami, Nesco, GIC Housing, BHEL, Galaxy Surfactants, Gujarat Alkalies, IOL Chemicals, Entertainment Network
Arun Goswami
19 May, 2025
Mumbai
Emami Limited increased 6% to ₹639.85 after the personal care and healthcare company reported an 18% rise in its earnings in the latest quarter.
Consolidated revenue in the March quarter increased to ₹984.2 crore from ₹901.9 crore, and after-tax profit rose to ₹162.2 crore from ₹146.8 crore, and diluted earnings per share soared to ₹3.72 from ₹3.41 a year ago.
For the fiscal year 2025, revenue advanced to ₹3,877.3 crore from ₹3,624.9 crore, after-tax profit inched higher to ₹802.7 crore from ₹724.1 crore, and diluted earnings per share edged up to ₹18.48 from ₹16.55 a year ago.
The company's board declared a 3rd interim dividend of ₹2 per share.
Nesco Ltd. dropped 18.7% to ₹800 after the exhibition venue company and engineering service providers reported a 19% plunge in quarterly profit from a year ago.
Consolidated revenue in the March quarter inched down to ₹211.6 crore from ₹219.9 crore, and after-tax profit declined to ₹88.6 crore from ₹105.1 crore, and diluted earnings per share fell to ₹12.58 from ₹14.92 a year ago.
For the fiscal year 2025, revenue edged higher to ₹845.7 crore from ₹783.1 crore, after-tax profit increased to ₹375.2 crore from ₹363.7 crore, and diluted earnings per share soared to ₹53.25 from ₹51.49 a year ago.
The company's board recommended a final dividend of ₹6.50 per share.
GIC Housing Finance Ltd. increased 0.3% to ₹190 after the housing finance company reported a slight increase in revenue and a 35% decline in profit in the March quarter.
Consolidated revenue in the March quarter advanced to ₹275.8 crore from ₹265.5 crore, and after-tax profit inched down to ₹35.1 crore from ₹53.6 crore, and diluted earnings per share declined to ₹6.52 from ₹9.95 a year ago.
For the fiscal year 2025, revenue edged higher to ₹1,088.9 crore from ₹1,069.7 crore, after-tax profit soared to ₹160.2 crore from ₹151.2 crore, and diluted earnings per share increased to ₹29.74 from ₹28.07 a year ago.
The company's board recommended a dividend of ₹4.50 per share.
Bharat Heavy Electricals Limited gained 0.3% to ₹251.15 after the power generation equipment maker reported a two-fold increase in earnings in the March quarter.
Consolidated revenue in the March quarter edged up to ₹9,152.2 crore from ₹8,425.2 crore, and after-tax profit inched higher to ₹504.1 crore from ₹484.4 crore, and diluted earnings per share rose to ₹1.45 from ₹1.39 a year ago.
For the fiscal year 2025, revenue edged higher to ₹20,387.5 crore from ₹17,243.9 crore, after-tax profit jumped to ₹513 crore from ₹260.9 crore, and diluted earnings per share soared to ₹1.47 from 75 paise a year ago.
The company's board recommended a dividend of 50 paise per share.
Galaxy Surfactants Limited jumped 2.5% to ₹2,303 after the home and personal care chemical maker reported a slight increase in revenue and net income in the latest quarter.
Consolidated revenue increased to ₹820.9 crore from ₹710.1 crore, net income rose to ₹44 crore from ₹42 crore, and diluted earnings per share advanced to ₹12.42 from ₹11.86 a year ago.
For the fiscal year 2025, revenue edged higher to ₹3,027.7 crore from ₹2,769.2 crore, after-tax profit declined to ₹173.8 crore from ₹200.3 crore, and diluted earnings per share fell to ₹49.03 from ₹56.51 a year ago.
The company's board recommended a dividend of ₹4 per share.
Gujarat Alkalies and Chemicals Ltd. soared 2% to ₹665 after the chemical manufacturing company’s net income swung to a profit from a year ago in the March quarter.
Consolidated revenue in the March quarter increased to ₹1,099.9 crore from ₹1,004.2 crore, and net income swung to a profit of ₹8.8 crore from a loss of ₹46.2 crore, and diluted earnings per share rose to an income of ₹1.20 from a loss of ₹6.29 a year ago.
For the fiscal year 2025, revenue edged higher to ₹4,165.1 crore from ₹3,896.7 crore, after-tax loss declined to ₹65.1 crore from ₹236.8 crore, and diluted losses per share shrank to ₹8.87 from ₹32.25 a year ago.
The company's board recommended a final dividend of ₹15.80 per share.
IOL Chemicals and Pharmaceuticals Ltd. rose 0.5% to ₹80.60 after the active pharmaceutical ingredient manufacturer reported a 14% rise in net income in the latest quarter.
Consolidated revenue in the March quarter inched higher to ₹532.3 crore from ₹511.4 crore, after-tax profit advanced to ₹31.4 crore from ₹27.6 crore, and diluted earnings per share rose to ₹1.07 from 94 paise a year ago.
For the fiscal year 2025, revenue edged down to ₹2,101.6 crore from ₹2,162.9 crore, after-tax profit decreased to ₹101.1 crore from ₹134.4 crore, and diluted earnings per share fell to ₹3.44 from ₹4.58 a year ago.
Entertainment Network (India) Ltd. advanced 2.7% to ₹148.85 after the radio station operator and a streaming service provider reported a profit increase of 37% in the fiscal fourth quarter.
Consolidated revenue in the March quarter inched higher to ₹169.8 crore from ₹158.4 crore, and after-tax profit advanced to ₹12.2 crore from ₹8.9 crore, and diluted earnings per share rose to ₹2.55 from ₹1.85 a year ago.
For the fiscal year 2025, revenue edged higher to ₹582.6 crore from ₹566.1 crore, after-tax profit decreased to ₹12 crore from ₹33 crore, and diluted earnings per share declined to ₹2.51 from ₹6.92 a year ago.
The company's board recommended a dividend of ₹2 per share.
Stock Movers: Emami, Nesco, GIC Housing, BHEL, Galaxy Surfactants, Gujarat Alkalies, IOL Chemicals, Entertainment Network
Arun Goswami
19 May, 2025
Mumbai
Emami Limited increased 6% to ₹639.85 after the personal care and healthcare company reported an 18% rise in its earnings in the latest quarter.
Consolidated revenue in the March quarter increased to ₹984.2 crore from ₹901.9 crore, and after-tax profit rose to ₹162.2 crore from ₹146.8 crore, and diluted earnings per share soared to ₹3.72 from ₹3.41 a year ago.
For the fiscal year 2025, revenue advanced to ₹3,877.3 crore from ₹3,624.9 crore, after-tax profit inched higher to ₹802.7 crore from ₹724.1 crore, and diluted earnings per share edged up to ₹18.48 from ₹16.55 a year ago.
The company's board declared a 3rd interim dividend of ₹2 per share.
Nesco Ltd. dropped 18.7% to ₹800 after the exhibition venue company and engineering service providers reported a 19% plunge in quarterly profit from a year ago.
Consolidated revenue in the March quarter inched down to ₹211.6 crore from ₹219.9 crore, and after-tax profit declined to ₹88.6 crore from ₹105.1 crore, and diluted earnings per share fell to ₹12.58 from ₹14.92 a year ago.
For the fiscal year 2025, revenue edged higher to ₹845.7 crore from ₹783.1 crore, after-tax profit increased to ₹375.2 crore from ₹363.7 crore, and diluted earnings per share soared to ₹53.25 from ₹51.49 a year ago.
The company's board recommended a final dividend of ₹6.50 per share.
GIC Housing Finance Ltd. increased 0.3% to ₹190 after the housing finance company reported a slight increase in revenue and a 35% decline in profit in the March quarter.
Consolidated revenue in the March quarter advanced to ₹275.8 crore from ₹265.5 crore, and after-tax profit inched down to ₹35.1 crore from ₹53.6 crore, and diluted earnings per share declined to ₹6.52 from ₹9.95 a year ago.
For the fiscal year 2025, revenue edged higher to ₹1,088.9 crore from ₹1,069.7 crore, after-tax profit soared to ₹160.2 crore from ₹151.2 crore, and diluted earnings per share increased to ₹29.74 from ₹28.07 a year ago.
The company's board recommended a dividend of ₹4.50 per share.
Bharat Heavy Electricals Limited gained 0.3% to ₹251.15 after the power generation equipment maker reported a two-fold increase in earnings in the March quarter.
Consolidated revenue in the March quarter edged up to ₹9,152.2 crore from ₹8,425.2 crore, and after-tax profit inched higher to ₹504.1 crore from ₹484.4 crore, and diluted earnings per share rose to ₹1.45 from ₹1.39 a year ago.
For the fiscal year 2025, revenue edged higher to ₹20,387.5 crore from ₹17,243.9 crore, after-tax profit jumped to ₹513 crore from ₹260.9 crore, and diluted earnings per share soared to ₹1.47 from 75 paise a year ago.
The company's board recommended a dividend of 50 paise per share.
Galaxy Surfactants Limited jumped 2.5% to ₹2,303 after the home and personal care chemical maker reported a slight increase in revenue and net income in the latest quarter.
Consolidated revenue increased to ₹820.9 crore from ₹710.1 crore, net income rose to ₹44 crore from ₹42 crore, and diluted earnings per share advanced to ₹12.42 from ₹11.86 a year ago.
For the fiscal year 2025, revenue edged higher to ₹3,027.7 crore from ₹2,769.2 crore, after-tax profit declined to ₹173.8 crore from ₹200.3 crore, and diluted earnings per share fell to ₹49.03 from ₹56.51 a year ago.
The company's board recommended a dividend of ₹4 per share.
Gujarat Alkalies and Chemicals Ltd. soared 2% to ₹665 after the chemical manufacturing company’s net income swung to a profit from a year ago in the March quarter.
Consolidated revenue in the March quarter increased to ₹1,099.9 crore from ₹1,004.2 crore, and net income swung to a profit of ₹8.8 crore from a loss of ₹46.2 crore, and diluted earnings per share rose to an income of ₹1.20 from a loss of ₹6.29 a year ago.
For the fiscal year 2025, revenue edged higher to ₹4,165.1 crore from ₹3,896.7 crore, after-tax loss declined to ₹65.1 crore from ₹236.8 crore, and diluted losses per share shrank to ₹8.87 from ₹32.25 a year ago.
The company's board recommended a final dividend of ₹15.80 per share.
IOL Chemicals and Pharmaceuticals Ltd. rose 0.5% to ₹80.60 after the active pharmaceutical ingredient manufacturer reported a 14% rise in net income in the latest quarter.
Consolidated revenue in the March quarter inched higher to ₹532.3 crore from ₹511.4 crore, after-tax profit advanced to ₹31.4 crore from ₹27.6 crore, and diluted earnings per share rose to ₹1.07 from 94 paise a year ago.
For the fiscal year 2025, revenue edged down to ₹2,101.6 crore from ₹2,162.9 crore, after-tax profit decreased to ₹101.1 crore from ₹134.4 crore, and diluted earnings per share fell to ₹3.44 from ₹4.58 a year ago.
Entertainment Network (India) Ltd. advanced 2.7% to ₹148.85 after the radio station operator and a streaming service provider reported a profit increase of 37% in the fiscal fourth quarter.
Consolidated revenue in the March quarter inched higher to ₹169.8 crore from ₹158.4 crore, and after-tax profit advanced to ₹12.2 crore from ₹8.9 crore, and diluted earnings per share rose to ₹2.55 from ₹1.85 a year ago.
For the fiscal year 2025, revenue edged higher to ₹582.6 crore from ₹566.1 crore, after-tax profit decreased to ₹12 crore from ₹33 crore, and diluted earnings per share declined to ₹2.51 from ₹6.92 a year ago.
The company's board recommended a dividend of ₹2 per share.
China New Home Price Decline, Industrial Production, and Retail Sales Growth Slow
Li Chen
19 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower in Monday's trading, and investors reviewed the latest flood of economic releases.
The Hang Seng Index declined 0.5%, and the Nasdaq Composite decreased 0.4%, as investors hoped for the GDP growth to meet the target rate after the release of mixed economic updates.
Retail sales in April advanced 5.1% from a year ago compared to a one-year high rate of 5.9% in the previous month, the National Bureau of Statistics reported on Monday.
For the first four months of the year, retail sales expanded 4.7%, amid weak economic consumption as households remained cautious due to weak consumer confidence and a prolonged property market slump.
China's new home prices declined for the 22nd consecutive month in April, but the decline was the slowest since May 2024, the statistical agency reported.
New home prices across the 70 largest cities decreased 4.0% from a year ago amid the central government's efforts to stabilize the residential property market.
New home prices in Beijing dropped 5.0% compared to 5.7%, in Guangzhou declined 6.3% compared to 7.2%, and in Shenzhen eased 3.0% compared to 3.9% in the previous month.
Meanwhile, prices in Shanghai advanced at a slightly faster pace of 5.9% compared to 5.7% in the previous month.
Industrial production expanded at a slower pace of 6.1% in April compared to a three-year high rate of 7.7% in March, the statistical bureau said in a separate report.
Factories expanded operations as U.S. importers and retailers front-loaded ahead of the looming tariffs and trade policy uncertainties.
Fixed asset investment increased at an annual pace of 4% in the first four months of April, the statistical agency reported.
April's data provided an early glimpse of the impact of the sharply higher U.S. tariffs on Chinese goods, destabilizing financial markets and bringing trade between the world's largest economies to a near halt.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,230.95, and the CSI 300 index dropped 0.4% to 3,874.40.
Midea Group increased 1.7% to HK $79.25, and ZTO Express advanced 4% to HK $149.60 after the two companies were selected to be included in the Hang Seng Index on June 6.
China New Home Price Decline, Industrial Production, and Retail Sales Growth Slow
Li Chen
19 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower in Monday's trading, and investors reviewed the latest flood of economic releases.
The Hang Seng Index declined 0.5%, and the Nasdaq Composite decreased 0.4%, as investors hoped for the GDP growth to meet the target rate after the release of mixed economic updates.
Retail sales in April advanced 5.1% from a year ago compared to a one-year high rate of 5.9% in the previous month, the National Bureau of Statistics reported on Monday.
For the first four months of the year, retail sales expanded 4.7%, amid weak economic consumption as households remained cautious due to weak consumer confidence and a prolonged property market slump.
China's new home prices declined for the 22nd consecutive month in April, but the decline was the slowest since May 2024, the statistical agency reported.
New home prices across the 70 largest cities decreased 4.0% from a year ago amid the central government's efforts to stabilize the residential property market.
New home prices in Beijing dropped 5.0% compared to 5.7%, in Guangzhou declined 6.3% compared to 7.2%, and in Shenzhen eased 3.0% compared to 3.9% in the previous month.
Meanwhile, prices in Shanghai advanced at a slightly faster pace of 5.9% compared to 5.7% in the previous month.
Industrial production expanded at a slower pace of 6.1% in April compared to a three-year high rate of 7.7% in March, the statistical bureau said in a separate report.
Factories expanded operations as U.S. importers and retailers front-loaded ahead of the looming tariffs and trade policy uncertainties.
Fixed asset investment increased at an annual pace of 4% in the first four months of April, the statistical agency reported.
April's data provided an early glimpse of the impact of the sharply higher U.S. tariffs on Chinese goods, destabilizing financial markets and bringing trade between the world's largest economies to a near halt.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,230.95, and the CSI 300 index dropped 0.4% to 3,874.40.
Midea Group increased 1.7% to HK $79.25, and ZTO Express advanced 4% to HK $149.60 after the two companies were selected to be included in the Hang Seng Index on June 6.
U.S. Stocks Extend Gains Amid Lack of Visible Signs of Tariffs On Inflation
Barry Adams
16 May, 2025
New York City
Wall Street indexes looked higher in early trading as investors looked to add exposure to riskier assets following two inflation reports and retail sales data.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2%, and the two widely followed benchmark indexes are set to extend gains for the fourth consecutive week.
In the week to Thursday, the S&P 500 index advanced 4.5%, and the Nasdaq Composite jumped 6%, after the U.S. and China agreed to lower tariffs over the weekend.
Market sentiment further improved after the U.S. rolled back additional tariffs on parcels arriving from China under the de minimis program, and China removed the ban on the purchase of Boeing aircraft.
Despite the cooling of tensions, the two sides are far apart, and tensions could easily flare up in the weeks ahead.
Two latest inflation reports also supported the market rebound, after the annual consumer price inflation eased to 2.3% and the producer price inflation declined 0.5% in April from the previous month.
Over the last five weeks, market recovery has been halting amid worries that higher tariffs on foreign goods will eventually show up in macroeconomic data, but the steady decline in gasoline prices could soften the blow to consumers.
Shipments from China are expected to rebound in early June as businesses scramble to make the most of the 90-day pause on punitive tariffs and restock warehouses.
Housing Activities Contracted In April
Closer to home on the economic front, housing activities fell in April from a year ago, according to the preliminary data released by the U.S. Census Bureau.
Building permits declined by 3.2% to an annual pace of 1.41 million, housing starts fell by 1.7% to 1.37 million, and housing completions dropped by 12.3% to 1.45 million from a year ago, respectively.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.04% to 5,919.48, the Nasdaq Composite edged up 0.2% to 19,147.60, and the Russell 2000 index advanced 0.6% to 2,097.02.
The yield on 2-year Treasury notes edged lower to 3.95%, 10-year Treasury notes decreased to 4.40%, and 30-year Treasury bonds declined to 4.86%.
WTI crude oil increased $0.41 to $62.03 a barrel, and natural gas prices edged lower by $0.02 to $3.38 a thermal unit.
Gold decreased by $62.48 to 3,174.20 an ounce, and silver edged down by $0.52 to $32.11.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.09 to 100.79 and traded at a two-year high.
U.S. Movers
Charter Communications Inc. soared 9.4% to $459.0 after the cable television service provider agreed to merge with the privately held Cox Communications.
The deal values Cox at an enterprise value of $34.5 billion, including $21.9 billion in equity and $12.6 net of all liabilities.
After the merger, Cox Enterprises will own 23% of the fully diluted outstanding shares, according to the merger announcement by the two companies.
Charter CEO Chris Winfrey will lead the combined company, and Alex Taylor, chairman and CEO of Cox Enterprises, will assume the role of chairman of the combined company's board.
Microsoft Corp. edged down 0.03% to $452.98, and the software company said it plans to eliminate 3% of its worldwide staff across all levels of management and geographies.
Microsoft employs about 228,000 staff around the world, according to the latest data available in the company's annual report.
The current round of layoffs is the largest for the Redmond, Washington-based software company following the elimination of 10,000 positions in 2023.
U.S. Stocks Extend Gains Amid Lack of Visible Signs of Tariffs On Inflation
Barry Adams
16 May, 2025
New York City
Wall Street indexes looked higher in early trading as investors looked to add exposure to riskier assets following two inflation reports and retail sales data.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2%, and the two widely followed benchmark indexes are set to extend gains for the fourth consecutive week.
In the week to Thursday, the S&P 500 index advanced 4.5%, and the Nasdaq Composite jumped 6%, after the U.S. and China agreed to lower tariffs over the weekend.
Market sentiment further improved after the U.S. rolled back additional tariffs on parcels arriving from China under the de minimis program, and China removed the ban on the purchase of Boeing aircraft.
Despite the cooling of tensions, the two sides are far apart, and tensions could easily flare up in the weeks ahead.
Two latest inflation reports also supported the market rebound, after the annual consumer price inflation eased to 2.3% and the producer price inflation declined 0.5% in April from the previous month.
Over the last five weeks, market recovery has been halting amid worries that higher tariffs on foreign goods will eventually show up in macroeconomic data, but the steady decline in gasoline prices could soften the blow to consumers.
Shipments from China are expected to rebound in early June as businesses scramble to make the most of the 90-day pause on punitive tariffs and restock warehouses.
Housing Activities Contracted In April
Closer to home on the economic front, housing activities fell in April from a year ago, according to the preliminary data released by the U.S. Census Bureau.
Building permits declined by 3.2% to an annual pace of 1.41 million, housing starts fell by 1.7% to 1.37 million, and housing completions dropped by 12.3% to 1.45 million from a year ago, respectively.
U.S. Movers
Charter Communications Inc. soared 9.4% to $459.0 after the cable television service provider agreed to merge with the privately held Cox Communications.
The deal values Cox at an enterprise value of $34.5 billion, including $21.9 billion in equity and $12.6 net of all liabilities.
After the merger, Cox Enterprises will own 23% of the fully diluted outstanding shares, according to the merger announcement by the two companies.
Charter CEO Chris Winfrey will lead the combined company, and Alex Taylor, chairman and CEO of Cox Enterprises, will assume the role of chairman of the combined company's board.
Microsoft Corp. edged down 0.03% to $452.98, and the software company said it plans to eliminate 3% of its worldwide staff across all levels of management and geographies.
Microsoft employs about 228,000 staff around the world, according to the latest data available in the company's annual report.
The current round of layoffs is the largest for the Redmond, Washington-based software company following the elimination of 10,000 positions in 2023.
European Markets Extend Weekly Gains to Fifth Consecutive Week, Richemont In Focus
Bridgette Randall
16 May, 2025
London
European markets advanced in Friday's trading, and benchmark indexes are set to extend their advance to the fifth consecutive week.
Market sentiment wavered in a choppy week of trading, but benchmarks across Europe hovered near their six-week highs amid de-escalating trade tensions with the U.S.
Investors are hoping that the European Union will be able to strike a deal with the U.S. as early as next month and avoid sky-high import taxes on automobiles, vehicle parts, steel, and aluminum.
On the earnings front, France's jobless rate edged up to 7.4% in the first quarter from 7.3% in the previous quarter, according to data released by the INSEE.
The labor participation rate increased to 75.1% from 74.6% in the previous quarter, but the number of unemployed persons increased by 64,000 to 2.4 million.
However, the youth jobless rate for those aged between 15 and 24 was virtually unchanged at 19.2%; for individuals between 25 and 49 edged up a fraction to 6.7%, and for individuals above 50 and over held steady at 4.7%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 23,786.26, the CAC-40 index edged higher by 0.2% to 7,853.47, and the FTSE 100 index advanced 0.5% to 8,675.90.
The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.27%, UK gilts moved down to 4.62%, and Italian bonds edged lower to 3.59%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.34 Swiss cents.
Brent crude decreased $0.06 to $64.46 a barrel, and the Dutch TTF natural gas was lower by €0.20 to €35.16 per MWh.
Europe Movers
Richemont SA gained 5.3% to CHF 163.15, and the luxury goods group reported a better-than-expected 7% increase in the first quarter.
Swiss Re AG increased 1.3% to CHF 151.65, and the reinsurance group reported a 16% increase in profit in the first quarter.
The company delivered higher earnings despite $587 million of losses linked to wildfires in Los Angeles, California.
Aegon Ltd. declined 0.4% to €6.19, and the Dutch insurance company reported weak results in the first quarter.
Despite the weak quarterly results, the insurance company reiterated its full-year estimate of €800 million in free cash flow and a dividend per share of €0.40.
European Markets Extend Weekly Gains to Fifth Consecutive Week, Richemont In Focus
Bridgette Randall
16 May, 2025
London
European markets advanced in Friday's trading, and benchmark indexes are set to extend their advance to the fifth consecutive week.
Market sentiment wavered in a choppy week of trading, but benchmarks across Europe hovered near their six-week highs amid de-escalating trade tensions with the U.S.
Investors are hoping that the European Union will be able to strike a deal with the U.S. as early as next month and avoid sky-high import taxes on automobiles, vehicle parts, steel, and aluminum.
On the earnings front, France's jobless rate edged up to 7.4% in the first quarter from 7.3% in the previous quarter, according to data released by the INSEE.
The labor participation rate increased to 75.1% from 74.6% in the previous quarter, but the number of unemployed persons increased by 64,000 to 2.4 million.
However, the youth jobless rate for those aged between 15 and 24 was virtually unchanged at 19.2%; for individuals between 25 and 49 edged up a fraction to 6.7%, and for individuals above 50 and over held steady at 4.7%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 23,786.26, the CAC-40 index edged higher by 0.2% to 7,853.47, and the FTSE 100 index advanced 0.5% to 8,675.90.
The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.27%, UK gilts moved down to 4.62%, and Italian bonds edged lower to 3.59%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.34 Swiss cents.
Brent crude decreased $0.06 to $64.46 a barrel, and the Dutch TTF natural gas was lower by €0.20 to €35.16 per MWh.
Europe Movers
Richemont SA gained 5.3% to CHF 163.15, and the luxury goods group reported a better-than-expected 7% increase in the first quarter.
Swiss Re AG increased 1.3% to CHF 151.65, and the reinsurance group reported a 16% increase in profit in the first quarter.
The company delivered higher earnings despite $587 million of losses linked to wildfires in Los Angeles, California.
Aegon Ltd. declined 0.4% to €6.19, and the Dutch insurance company reported weak results in the first quarter.
Despite the weak quarterly results, the insurance company reiterated its full-year estimate of €800 million in free cash flow and a dividend per share of €0.40.
Europe Movers: Aegon, Swiss Re
Inga Muller
16 May, 2025
Frankfurt
Swiss Re AG dropped 2% to CHF 146.65 after the Swiss reinsurance company reported lower revenue in the first quarter.
Insurance revenue declined 11% to $10.40 billion from $11.68 billion, and net income jumped 16% to $1.27 billion from $1.10 billion a year ago.
The company has proposed a dividend of $7.35 per share, an increase of 8% over the previous year.
Aegon Ltd. eased 0.8% to €6.16 after the Dutch financial services company reported first-quarter 2025 results.
Net deposits declined 72% to €767 million from €2.73 billion, and assets under management increased 3% to €324.62 billion from €314.05 billion a year ago.
“Third-party net deposits in Global Platforms were mostly driven by inflows in alternative fixed income products and fixed income products in the UK and the Netherlands,” the company said in a release to investors.
Net outflows from Affiliate resulted mainly from net outflows in UK and US retirement funds and the gradual run-off of the traditional insurance book in the UK, the company added in the statement.
New life sales in the international segment rose 11% in the quarter from a year ago, mainly driven by Brazil due to higher credit life sales.