- Barry Adams
- 28 Jul, 2025
- New York City
U.S. stocks traded sideways, and investors were lukewarm to the latest U.S.-EU trade pact.
This week investors are preparing to review quarterly earnings from more than 300 companies, as the earnings season picks up pace.
Apple, Amazon, Microsoft, Meta, Visa, MasterCard, PayPal, and Boeing are on tap to release their quarterly results.
On the economic front, investors are awaiting the release of the second quarter GDP growth update, and economists are anticipating the U.S. economy to expand at an annual pace of 2.2% compared to a decrease of 0.5%.
The labor market updates will also remain in investor focus this week; despite macroeconomic uncertainty, the U.S. labor market remains resilient.
On Friday, the nonfarm payrolls report is expected to show that the U.S. economy added at least 100,000 net new jobs in July, down from 147,000 in June.
On Wednesday, the Jobs and Labor Turnover Survey, the so-called JOLTS report, is expected to show job openings to remain above 7 million, despite the resilient but cooling jobs market.
The Federal Reserve is anticipated to hold its short-term interest rate range unrevised between 4.25% and 4.50%, and investors will be looking for clues if a rate cut is likely at the following policy meeting in September.
U.S. Stock Movers
Tesla Inc. rose 1.4% to $320.80, and the company's chief executive confirmed a $16.5 billion chips contract with the South Korea-based Samsung to supply advanced semiconductors.
Defense stocks rallied after the U.S. president claimed, without offering details or a timetable, that the European Union "would be purchasing hundreds of billions of dollars of military equipment."
L3Harris gained 0.3% to $270.25, RTX Corp. added 1.1% to $158.13, and Lockheed Martin jumped 1.1% to $158.13.
- Barry Adams
- 28 Jul, 2025
- New York City
U.S. stocks traded sideways, and investors were lukewarm to the latest U.S.-EU trade pact.
This week investors are preparing to review quarterly earnings from more than 300 companies, as the earnings season picks up pace.
Apple, Amazon, Microsoft, Meta, Visa, MasterCard, PayPal, and Boeing are on tap to release their quarterly results.
On the economic front, investors are awaiting the release of the second quarter GDP growth update, and economists are anticipating the U.S. economy to expand at an annual pace of 2.2% compared to a decrease of 0.5%.
The labor market updates will also remain in investor focus this week; despite macroeconomic uncertainty, the U.S. labor market remains resilient.
On Friday, the nonfarm payrolls report is expected to show that the U.S. economy added at least 100,000 net new jobs in July, down from 147,000 in June.
On Wednesday, the Jobs and Labor Turnover Survey, the so-called JOLTS report, is expected to show job openings to remain above 7 million, despite the resilient but cooling jobs market.
The Federal Reserve is anticipated to hold its short-term interest rate range unrevised between 4.25% and 4.50%, and investors will be looking for clues if a rate cut is likely at the following policy meeting in September.
U.S. Stock Movers
Tesla Inc. rose 1.4% to $320.80, and the company's chief executive confirmed a $16.5 billion chips contract with the South Korea-based Samsung to supply advanced semiconductors.
Defense stocks rallied after the U.S. president claimed, without offering details or a timetable, that the European Union "would be purchasing hundreds of billions of dollars of military equipment."
L3Harris gained 0.3% to $270.25, RTX Corp. added 1.1% to $158.13, and Lockheed Martin jumped 1.1% to $158.13.
- Akira Ito
- 28 Jul, 2025
- Tokyo
Stock market indexes in Tokyo closed down for the second consecutive session amid caution ahead of the BoJ's rate decisions and corporate earnings.
The Nikkei 225 Stock Average fell 0.9%, and the broader Topix decreased 0.6%, as investors assessed the impact of the latest Japan-U.S. trade deal on the export-reliant industries.
In a busy week of earnings, investors are looking forward to results from Tokyo Electron, Advantest Corp., Keyence, Nintendo, ANA Holdings, Japan Airlines, Toyota Motor, Marubeni, and Mitsui & Company.
However, investors were less than enthusiastic about a deal between the U.S. and China, as negotiators meet in Sweden ahead of the August 12 deadline set by the U.S.
The U.S. president announced a "trade deal" with the European Union that will limit the additional tariffs on goods to 15%, higher than the current rate of about 2.5%.
The Japanese yen traded at 147.85 against the U.S. dollar amid worries about the near-term future of Prime Minister Shigeru Ishiba after the recent losses in the Upper House elections.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,075.83, and the Topix fell 0.6% to 2,933.74.
Tokyo Electron decreased 2.2% to ¥27,330.0, Advantest Corp. plunged 8% to ¥10,465.0, and Keyence Corp. increased 0.9% to ¥58,110.0.
Ahead of corporate results, Toyota Motor advanced 0.7% to ¥58,110.0, Marubeni Corp. decreased 0.8% to ¥3,064.0, Mitsui & Company dropped 1.4% to ¥3,095.0, Japan Airlines fell 0.9% to ¥2,926.50, and ANA Holdings added 0.2% to ¥2,945.0.
- Akira Ito
- 28 Jul, 2025
- Tokyo
Stock market indexes in Tokyo closed down for the second consecutive session amid caution ahead of the BoJ's rate decisions and corporate earnings.
The Nikkei 225 Stock Average fell 0.9%, and the broader Topix decreased 0.6%, as investors assessed the impact of the latest Japan-U.S. trade deal on the export-reliant industries.
In a busy week of earnings, investors are looking forward to results from Tokyo Electron, Advantest Corp., Keyence, Nintendo, ANA Holdings, Japan Airlines, Toyota Motor, Marubeni, and Mitsui & Company.
However, investors were less than enthusiastic about a deal between the U.S. and China, as negotiators meet in Sweden ahead of the August 12 deadline set by the U.S.
The U.S. president announced a "trade deal" with the European Union that will limit the additional tariffs on goods to 15%, higher than the current rate of about 2.5%.
The Japanese yen traded at 147.85 against the U.S. dollar amid worries about the near-term future of Prime Minister Shigeru Ishiba after the recent losses in the Upper House elections.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,075.83, and the Topix fell 0.6% to 2,933.74.
Tokyo Electron decreased 2.2% to ¥27,330.0, Advantest Corp. plunged 8% to ¥10,465.0, and Keyence Corp. increased 0.9% to ¥58,110.0.
Ahead of corporate results, Toyota Motor advanced 0.7% to ¥58,110.0, Marubeni Corp. decreased 0.8% to ¥3,064.0, Mitsui & Company dropped 1.4% to ¥3,095.0, Japan Airlines fell 0.9% to ¥2,926.50, and ANA Holdings added 0.2% to ¥2,945.0.
- Li Chen
- 28 Jul, 2025
- Hong Kong
Stocks in China and Hong Kong diverged as investors reviewed and prepared for a busy week of earnings and rate decisions.
The Hang Seng index edged up 0.4%, and the mainland-focused CSI 300 index declined 0.2% amid rising hopes that a U.S.-China trade deal could avert excessive tariffs.
Trade negotiators are scheduled to meet in Sweden later today amid a weak outlook for an agreement ahead of the U.S.-imposed August 12 deadline.
Investors are hoping that the U.S. will extend the deadline for an agreement by another 90 days, as both sides struggle to agree on tariff rates, exclusion lists, and timetables.
For now, the current average tariff rate on the U.S. goods is just above 50%, sharply higher than 25% in 2024, and significantly above 10% only a decade ago.
Despite the rise in U.S. tariffs, China's exports continue to climb at a steady pace, as U.S. consumers rely on Chinese consumer and electrical goods, apparel and accessories, toys, and solar panels.
China's direct exports have jumped more than four-fold in two decades to $440 billion in 2024, despite the growing U.S. trade hurdles and tariffs.
The U.S. and the European Union agreed on a trade framework deal that will limit the U.S. import tax to 15%, according to the Trump administration.
The announcement lacked a specific timetable and critical details but reflected a tone similar to a broad agreement between the U.S. and Japan.
The trade agreement increases U.S. import tariffs to 15% from the current average of less than 3%, but it is lower than the threatened 25% tariffs by the U.S. president.
Trump's tariffs are expected to increase U.S. inflation and alter supply chains but not achieve the reshoring of manufacturing to the U.S. and increase foreign direct investments.
Meanwhile, tariff-related uncertainty and higher goods prices are likely to force the Federal Reserve to keep higher rates for longer.
The Federal Reserve is set to announce its rate decisions this week, and investors are anticipating the central bank to hold rates steady.
The Bank of Japan is expected to leave its benchmark rates steady but signal higher rates amid rising inflationary pressures in the economy.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,480.53, and the mainland-focused CI 300 index decreased 0.2% to 4,119.24.
CK Hutchison Holdings Ltd. decreased 0.6% to HK $53.15, and the company said it plans to invite investment from a China-based company in a consortium to purchase its stake in ports.
The company's $23 billion deal to sell its global shipping ports, including in Panama, has faced stiff headwinds from China and the U.S.
The U.S.-based consortium and CK Hutchison had set the deadline to finalize the deal on July 27; however the deal is facing significant regulatory hurdles in Beijing.
The governments of the U.S. and China are maneuvering to retain an upper hand in controlling the flow of goods through the Panama Canal.
Insurance companies advanced after Morgan Stanley issued positive comments on AIA Group.
AIA Group rose 4.4% to HK $73.70, Ping An Insurance advanced 2.4% to HK ¥51.30, and China Life Insurance edged up 3.5% to HK $23.55.
- Li Chen
- 28 Jul, 2025
- Hong Kong
Stocks in China and Hong Kong diverged as investors reviewed and prepared for a busy week of earnings and rate decisions.
The Hang Seng index edged up 0.4%, and the mainland-focused CSI 300 index declined 0.2% amid rising hopes that a U.S.-China trade deal could avert excessive tariffs.
Trade negotiators are scheduled to meet in Sweden later today amid a weak outlook for an agreement ahead of the U.S.-imposed August 12 deadline.
Investors are hoping that the U.S. will extend the deadline for an agreement by another 90 days, as both sides struggle to agree on tariff rates, exclusion lists, and timetables.
For now, the current average tariff rate on the U.S. goods is just above 50%, sharply higher than 25% in 2024, and significantly above 10% only a decade ago.
Despite the rise in U.S. tariffs, China's exports continue to climb at a steady pace, as U.S. consumers rely on Chinese consumer and electrical goods, apparel and accessories, toys, and solar panels.
The U.S. and the European Union agreed on a trade framework deal that will limit the U.S. import tax to 15%, according to the Trump administration.
The announcement lacked a specific timetable and critical details but reflected a tone similar to a broad agreement between the U.S. and Japan.
The trade agreement increases U.S. import tariffs to 15% from the current average of less than 3%, but it is lower than the threatened 25% tariffs by the U.S. president.
Trump's tariffs are expected to increase U.S. inflation and alter supply chains but not achieve the reshoring of manufacturing to the U.S. and increase foreign direct investments.
Meanwhile, tariff-related uncertainty and higher goods prices are likely to force the Federal Reserve to keep higher rates for longer.
The Federal Reserve is set to announce its rate decisions this week, and investors are anticipating the central bank to hold rates steady.
The Bank of Japan is expected to leave its benchmark rates steady but signal higher rates amid rising inflationary pressures in the economy.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,480.53, and the mainland-focused CI 300 index decreased 0.2% to 4,119.24.
Insurance companies advanced after Morgan Stanley issued positive comments on AIA Group.
AIA Group rose 4.4% to HK $73.70, Ping An Insurance advanced 2.4% to HK ¥51.30, and China Life Insurance edged up 3.5% to HK $23.55.