US stock markets extended their rally on Monday, supported by easing trade tensions between the US and Canada and growing speculation of earlier interest rate cuts by the Federal Reserve. Technology stocks led the gains. In Asia, markets traded mixed on Tuesday as manufacturing data reflected uneven recovery across the region. Gold surged, trading around USD 3330 per ounce. On Tuesday, markets will monitor comments from the leaders of many of the world’s largest central banks at the European Central Bank’s annual forum in Sintra, Portugal.
US stock markets extended their rally on Monday, with the Nasdaq 100 rising 0.6% to 22,679.01 points and the S&P 500 gaining 0.5% to 6204.95 points, both reaching new highs. Apple shares rebounded 2% following reports of potential AI integration for Siri, while Oracle surged 4% on a new cloud deal.
Asia-Pacific markets were trading with mixed performance on Tuesday as factory activity across Asia showed mixed results in June. Hong Kong’s Hang Seng Index dropped 0.9% and mainland China’s CSI 300 edged up 0.1% after China's private Manufacturing Purchasing Managers’ Index (PMI) expanded to 50.4. Japan’s Nikkei 225 was down 1% even after the country’s manufacturing activity grew for the first time in 13 months. South Korea's recent PMI contraction eased slightly and the Kospi surged 0.9%. Australia’s S&P/ASX 200 was trading essentially flat. Uncertainty over US tariffs and weak global demand continue to weigh on the region's economic recovery. While India stood out with a 14-month high PMI of 58.4, most other Asian economies, including Indonesia, Vietnam, and Taiwan, reported contractions.
The KOF Economic Barometer, a key indicator of Switzerland's economic outlook, declined by 2.5 points in June to 96.1, marking its lowest level this year after a revised figure of 98.6 in May. The manufacturing sector faced significant pressure, with negative trends observed in business conditions, production activity, and order backlogs. However, improved prospects in foreign demand slightly mitigated the overall decline. Sub-sectors such as chemicals, metals, and construction showed pronounced weakness, while the textile industry remained stable. The Swiss Market Index (SMI) fell 0.6% on Monday.
Germany’s annual inflation rate fell to 2% in June, down from 2.1% in May, according to preliminary data released on Monday. The unexpected decline aligns with the European Central Bank's target and contrasts with the market’s expectation of 2.2%. The euro area’s disinflation is largely driven by external factors such as falling oil prices and a stronger euro, though elevated service inflation remains a concern. European stock markets closed lower on Monday, with the Euro Stoxx 50 slipping 0.4%. Germany’s DAX dropped 0.5% to 23,909.61 points, while France’s CAC 40 declined 0.3%.
UK gross domestic product increased by 0.7% in the first quarter of 2025, marking a 1.3% rise year-on-year, according to data released on Monday by the Office for National Statistics. This rebound follows stagnation in the latter half of 2024, driven by a 0.8% rise in manufacturing, particularly exports of transport equipment to the US. However, April saw a 0.3% contraction in monthly GDP, attributed to declining goods exports after US tariff policies took effect. While employer confidence reached a nine-year high, the OECD downgraded UK growth forecasts for 2025 and 2026, citing trade tensions and policy uncertainty.
Corporate news in focus: There is no major corporate news scheduled today.
Economic data in focus: Swiss real retail sales (08:30), German unemployment rate (09:55), euro-area Harmonised Index of Consumer Prices (11:00), Federal Reserve Chair Jerome Powell speaks (15:30), European Central Bank President Christine Lagarde speaks (15:30), US JOLTS job openings (16:00), US ISM Manufacturing Purchasing Managers’ Index (16:00).
Global economic and market trends at a glance
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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.