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Stocks rebound as oil eases

Asian equities were mostly higher on Tuesday as technology shares recovered from the previous session’s sharp sell-off and oil prices fell after Israel and Iran appeared to step back from further escalation. South Korea and Japan led gains, supported by chipmakers, while Chinese shares were underpinned by stronger-than-expected trade data for May. US stocks ended mixed on Monday, with the Nasdaq rebounding strongly, while European equities were mostly weaker.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Oil
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Asian equities traded mostly higher on Tuesday as technology shares recovered after recent heavy losses and tensions between Israel and Iran appeared to ease. South Korea’s Kospi rose 7.4%, rebounding from a more than 8% drop on Monday, while Japan’s Nikkei 225 gained 1.9% after falling more than 4% in the previous session. Chipmakers drove the rally. Oil prices fell on Tuesday after Israel and Iran agreed to stop attacking each other, easing immediate fears that the conflict would further disrupt Middle East supply. Brent crude slipped towards USD 93 a barrel after ending slightly higher on Monday, while West Texas Intermediate traded near USD 90, although markets remained sensitive to risks as the Strait of Hormuz stayed effectively closed. Gold and bitcoin reovered slightly from recent drops, trading around USD 4340 per ounce and USD 63,500, respectively.

China exports accelerate in May

Mainland China’s CSI 300 was up 0.9% and Hong Kong’s Hang Seng Index slipped 0.2% after customs data released Tuesday showed China’s exports rose 19.4% year-on-year in May, up from 14.1% in April and faster than the market had expected, while imports increased 27.4% after a 25.3% rise in April. Shipments to the US surged 35.4%, the strongest increase since March 2021, helped by robust demand for artificial intelligence-related products and green technologies, while integrated circuit exports climbed 32% to 39.7 billion units. The stronger trade data suggested external demand remained a key support for China’s economy even as domestic consumption stayed weak and policymakers faced less pressure to deliver major stimulus. However, export momentum may prove temporary if overseas stockpiling fades and higher energy costs linked to the Middle East conflict begin to weigh more heavily on growth.

Australian consumer sentiment weakens

Australia’s S&P/ASX 200 was trading 0.2% lower after consumer sentiment fell to 80.6 in June, down 2.9% from May, according to survey data released on Tuesday, leaving the index among the weakest readings in its 50-year history. Confidence was weighed down by higher borrowing costs, rising petrol prices and concerns about newly announced tax changes affecting the housing market. Expectations for household finances and the broader economy deteriorated, while the gauge of whether it was a good time to buy a major item edged up but remained well below its long-run average at 86.4 versus 123.0. The figures add to signs that cost-of-living pressures and this year’s Reserve Bank of Australia rate increases are continuing to restrain demand.

Nasdaq rebounds

US stocks finished mixed on Monday as investors returned to technology shares after Friday’s sell-off, with the Nasdaq 100 rising 1.6% to 29,414.26 points after dropping almost 5% in the previous session. The S&P 500 gained 0.3% to 7405.73, while the Dow Jones Industrial Average slipped 0.2% to 50,786.01, even as renewed strikes between Israel and Iran and higher oil prices kept geopolitical risks in focus. Semiconductor shares led the recovery, with Intel jumping 11.2% after a report that Google parent company Alphabet had ordered more than three million artificial intelligence chips, while Marvell Technology rose 9.6% on news it will join the S&P 500 on 22 June.

Euro-area sentiment improves in June

Euro-area investor sentiment improved for a second straight month, Sentix data showed on Monday, with the overall index rising to -13.4 points in June from -16.4 in May as expectations climbed to -6.5 from -11.3, while the current situation gauge remained weak at -20.0 versus -21.5. The report said the rebound followed the sharp deterioration in March and April caused by the Iran conflict and higher oil prices, although sentiment has only partly recovered. Germany remained the main laggard, with its overall index improving to -13.3 from -18.8 but the current situation measure slipping to -42.5 from -42.3, its lowest level since February 2025. European stock markets were mostly lower on Monday, although the Euro Stoxx 50 was little changed. Germany’s DAX fell 0.6%, France’s CAC 40 lost 0.2%, and Switzerland’s Swiss Market Index declined 0.5%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: German trade balance (08:00), Canadian trade balance (14:30), US trade balance (14:30), US existing home sales (16:00), ECB President Christine Lagarde speaks (18:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.