China FRIDAY

Stocks in Hong Kong and mainland China advanced on Friday, and extended weekly gains amid hopes of improved earnings and policy support. 

The Hang Seng index gained more than 1.5%, and the mainland-focused CSI 300 index advanced more than 1%, amid expectations of improving earnings in the manufacturing sector and Internet-based platform operators. 

For the week, the Hang Seng index and the CSI index advanced to new three-month highs as investors moved on from constantly changing U.S. trade policy and arbitrary threats from the U.S. president. 

The key U.S. trade partners - China, Japan, the European Union, Canada, and Mexico - have resisted aggressive import taxes announced by the Trump administration.

But the ensuing business uncertainty has disrupted international traded and roiled global financial markets. 

Investors in China are dialing down expectations for economic growth in the second half, as exporters face headwinds and reduced profitability.   

Investors are hoping that a Politburo meeting later in the month may provide additional fiscal stimulus, but for now policymakers are resisting the move. 

China Indexes and Stocks 

The Hang Seng index increased 1.6% to 24,408.41, and the CSI 300 index rose 1.1% to 4,053.58. 

China Mengniu Dairy Company Ltd. jumped 3.5% to HK $16.48 after the company confirmed it repurchased HK$6.35 million worth of its own shares on Thursday. 

Alibaba Group Holding advanced 3.3% to HK $106.70, Tencent Holding 1.5% to HK $505.00, and Meituan edged down 1.2% to HK $122.40. 

China

Traders In New York Overlook New and Expanding Tariff Threats

Stocks in New York fluctuated around the flatline, and investors awaited the start of earnings season next week. 

The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2%, following a rebound in the previous session.

Investors are increasingly looking beyond the ongoing Trump administration's efforts to prolong the trade negotiations with key trading partners. 

The latest combination of threats to Japan and South Korea and a new wave of sector-specific tariffs did little to sway the market's opinion about the U.S. president: "Trump always chickens out."

Trump announced a 50% tariff on imported copper and slapped a 50% tariff on Brazil, largely in retaliation for the current trial against the former president Jair Bolsonaro for his role in an alleged plot to overturn his loss in the 2022 presidential election.

U.S. Stock Movers 

Delta Air Lines jumped 13.1% to $57.33 after the company reinstated its 2025 earnings outlook.

The international carrier said full-year earnings per share are expected to range between $5.35 and $6.25, and estimated cash flow between $3 billion and $4 billion.

Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.

Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.

For the fiscal year 2025, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.

Delta Air Lines Inc. gained 12.4% to $56.81 after the international air carrier reported a 62% jump in its earnings in the fiscal second quarter ending in June.

Revenue decreased to $16.6 billion from $16.7 billion, net income jumped to $2.1 billion from $1.3 billion, and diluted earnings per share rose to $3.27 from $2.1 a year ago.

For the six-month period, revenue edged higher to $30.7 billion from $30.4 billion, net income soared to $2.4 billion from $1.3 billion, and diluted earnings per share advanced to $3.63 from $2.08 a year ago.

The Delta Air Lines estimated full-year earnings per share to range between $5.25 and $6.25 and free cash flow between $3 billion and $4 billion.

"For the September quarter, we expect total revenue to be flat to up 4% compared to the prior year, with unit revenue trends expected to improve through the second half of the year as we continue to adjust capacity and the industry further rationalizes supply," the company said in a statement to investors. 

Traders In New York Overlook New and Expanding Tariff Threats

Stocks in New York fluctuated around the flatline, and investors awaited the start of earnings season next week. 

The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2%, following a rebound in the previous session.

Investors are increasingly looking beyond the ongoing Trump administration's efforts to prolong the trade negotiations with key trading partners. 

The latest combination of threats to Japan and South Korea and a new wave of sector-specific tariffs did little to sway the market's opinion about the U.S. president: "Trump always chickens out."

Trump announced a 50% tariff on imported copper and slapped a 50% tariff on Brazil, largely in retaliation for the current trial against the former president Jair Bolsonaro for his role in an alleged plot to overturn his loss in the 2022 presidential election.

U.S. Stock Movers 

Delta Air Lines jumped 13.1% to $57.33 after the company reinstated its 2025 earnings outlook.

The international carrier said full-year earnings per share are expected to range between $5.35 and $6.25, and estimated cash flow between $3 billion and $4 billion.

Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.

Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.

For the fiscal year 2025, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.

Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.

Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.

For the six-month period, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.

U.S. Movers: Bassett Furniture, Delta Air Lines

Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter ending in May. 

Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.

For the six-month period ending in May, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.

Delta Air Lines Inc. gained 12.4% to $56.81 after the international air carrier reported a 62% jump in its earnings in the fiscal second quarter ending in June.

Revenue decreased to $16.6 billion from $16.7 billion, net income jumped to $2.1 billion from $1.3 billion, and diluted earnings per share rose to $3.27 from $2.1 a year ago.

For the six-month period, revenue edged higher to $30.7 billion from $30.4 billion, net income soared to $2.4 billion from $1.3 billion, and diluted earnings per share advanced to $3.63 from $2.08 a year ago.

The Delta Air Lines estimated full-year earnings per share to range between $5.25 and $6.25 and free cash flow between $3 billion and $4 billion.

"For the September quarter, we expect total revenue to be flat to up 4% compared to the prior year, with unit revenue trends expected to improve through the second half of the year as we continue to adjust capacity and the industry further rationalizes supply," the company said in a statement to investors. 

U.S. Movers: Bassett Furniture

Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.

Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.

For the fiscal year 2025, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.

China Deflation and Volatile U.S. Trade Policy Keep China Markets In Check

China's stock market indexes fluctuated on Thursday as investors reviewed the latest inflation reports and awaited the progress on tariff negotiations. 

The Hang Seng index edged up 0.1%, and the CSI 300 index decreased 0.3%, ahead of the fast-approaching deadline for the U.S. tariffs.

The producer and consumer inflation reports confirmed the persistent deflation trend for the last three years, and investors lowered economic growth expectations for the second half. 

Moreover, the U.S. and China remain far from an agreement on the additional tariffs on Chinese goods. 

The Trump administration is looking to impose at least 40% additional duty on Chinese goods and seeking duty-free access for agricultural exports from the U.S. 

Chinese consumer and industrial goods makers are expanding overseas and seeking new markets in the ASEAN region, South America, and the Middle East.

The volatile and disruptive U.S. trade policy has pushed thousands of small and medium-sized businesses on the brink of closure. 

China Indexes and Stocks 

The Hang Seng Index increased 0.1% to 23,918.76, and the mainland-focused CSI 300 index decreased 0.3% to 4,003.32. 

Sunny Optical Technology Group advanced 6.5% to HK $75.55, Baidu Inc. decreased 1.4% to HK $86.70, and Xiaomi Corp. fell 1% to HK $56.85. 

Alibaba Group Holding fell 0.9% to HK $102.0, Meituan decreased 0.8% to HK $118.30, and Tencent Holdings eased 0.4% to HK $495.40. 

China Deflation and Volatile U.S. Trade Policy Keep China Markets In

China's stock market indexes fluctuated on Thursday as investors reviewed the latest inflation reports and awaited the progress on tariff negotiations. 

The Hang Seng index edged up 0.1%, and the CSI 300 index decreased 0.3%, ahead of the fast-approaching deadline for the U.S. tariffs.

The producer and consumer inflation reports confirmed the persistent deflation trend for the last three years, and investors lowered economic growth expectations for the second half. 

Moreover, the U.S. and China remain far from an agreement on the additional tariffs on Chinese goods. 

The Trump administration is looking to impose at least 40% additional duty on Chinese goods and seeking duty-free access for agricultural exports from the U.S. 

Chinese consumer and industrial goods makers are expanding overseas and seeking new markets in the ASEAN region, South America, and the Middle East.

The volatile and disruptive U.S. trade policy has pushed thousands of small and medium-sized businesses on the brink of closure. 

China Indexes and Stocks 

The Hang Seng Index increased 0.1% to 23,918.76, and the mainland-focused CSI 300 index decreased 0.3% to 4,003.32. 

Sunny Optical Technology Group advanced 6.5% to HK $75.55, Baidu Inc. decreased 1.4% to HK $86.70, and Xiaomi Corp. fell 1% to HK $56.85. 

Alibaba Group Holding fell 0.9% to HK $102.0, Meituan decreased 0.8% to HK $118.30, and Tencent Holdings eased 0.4% to HK $495.40. 

S&P 500 and Nasdaq Scale New Highs, Trump's Tariffs Expand to Sectors

Wall Street indexes hugged the flatline, and investors fear tariff talks are likely to drag on with key trading partners with no hard deadline. 

The S&P 500 index edged up 0.5%, and the tech-heavy Nasdaq Composite edged up 0.6%, as investors fear the next wave of Trump tariff threats are likely to focus on sectors. 

Trump imposed a 50% tariff on imported copper without specifying timing and grades of metal and announced his plan to impose an additional tariff of 200% on pharmaceuticals. 

The Trump administration's arbitrary and reckless approach to import taxes has severely impacted businesses of all sizes, and most retailers, wholesalers, and manufacturers are passing on higher tariffs to consumers. 

Moreover, the constant changes in import taxes have forced businesses to halt shipments or avoid international purchases until trade agreements are finalized, which could take several more months. 

U.S. Stock Movers 

Verona Pharma PLC jumped 20% to $104.92, and the UK-based lung therapy company agreed to be acquired by Merck for $10 billion. 

Merck & Co. edged up 0.9% to $81.86. 

Mining companies were in focus after the U.S. president slapped a 50% tariff on copper imports. 

BHP Group added 1.2% to $49.96, Rio Tinto plc decreased 0.6% to $58.40, Newmont Corporation edged up 0.1% to $57.68, and Freeport-McMoRan Inc. gained 1.1% to $46.80.

AES Corp. jumped 16.5% to $12.90 on a report that the company is exploring a potential sale, according to Bloomberg News. 

Starbucks Corp. jumped 2.3% to $97.60 after a CNBC report suggested that the company's China subsidiary sale was valued as high as $10 billion in preliminary bids.

S&P 500 and Nasdaq Scale New Highs, Trump's Tariffs Expand to Sectors

Wall Street indexes hugged the flatline, and investors fear tariff talks are likely to drag on with key trading partners with no hard deadline. 

The S&P 500 index edged up 0.5%, and the tech-heavy Nasdaq Composite edged up 0.6%, as investors fear the next wave of Trump tariff threats are likely to focus on sectors. 

Trump imposed a 50% tariff on imported copper without specifying timing and grades of metal and announced his plan to impose an additional tariff of 200% on pharmaceuticals. 

The Trump administration's arbitrary and reckless approach to import taxes has severely impacted businesses of all sizes, and most retailers, wholesalers, and manufacturers are passing on higher tariffs to consumers. 

Moreover, the constant changes in import taxes have forced businesses to halt shipments or avoid international purchases until trade agreements are finalized, which could take several more months. 

U.S. Stock Movers 

Verona Pharma PLC jumped 20% to $104.92, and the UK-based lung therapy company agreed to be acquired by Merck for $10 billion. 

Merck & Co. edged up 0.9% to $81.86. 

Mining companies were in focus after the U.S. president slapped a 50% tariff on copper imports. 

BHP Group added 1.2% to $49.96, Rio Tinto plc decreased 0.6% to $58.40, Newmont Corporation edged up 0.1% to $57.68, and Freeport-McMoRan Inc. gained 1.1% to $46.80.

AES Corp. jumped 16.5% to $12.90 on a report that the company is exploring a potential sale, according to Bloomberg News. 

Starbucks Corp. jumped 2.3% to $97.60 after a CNBC report suggested that the company's China subsidiary sale was valued as high as $10 billion in preliminary bids.

European Markets Overlooked Latest U.S. Tariff Threats; Copper Hits New Record High

European markets advanced on Wednesday, and investors ignored the new U.S. tariff threats. 

Benchmark indexes in Frankfurt, Paris, Milan, and London headed higher in cautious trading ahead of the start of the earnings season this week. 

Investors turned cautious and refrained from making larger bets amid heightened trade tensions with the U.S. after the U.S. president said he plans to announce additional import duties on the EU in retaliation to duties on U.S. technology firms.

The Trump administration's threats are increasingly ignored by the European investors, because Donald Trump always backs down at the last minute and lowers the previously announced arbitrary tariffs.

Banks traded higher after UniCredit SpA increased its direct equity stake in the Germany-based Commerzbank and signaled its intention is for passive investment only. 

Europe Stock Movers 

Mining companies declined amid a drop in copper prices after the U.S. president proposed to levy a 50% tariff on the industrial metal. 

Glencore PLC decreased 2.9% to 299.70 pence, Antofagasta plc dropped 1.9% to 1,885.0 pence, and Anglo American plc fell 1.8% to 2,183.95 pence. 

Italy-based UniCredit SpA increased its stake in Germany's Commerzbank to 20% from 10%, and following the conversion to an equity stake after winning the approval from the European Central Bank, the Federal Reserve Bank, and German regulators. 

The Italian bank reiterated its passive investment in the bank is for financial interest and added it plans to convert its derivative stake and increase its equity holding to 29%. 

UniCredit SpA advanced 3.3% to €60.37, and Commerzbank AG gained 0.6% to €30.14. 

European Markets Overlooked Latest U.S. Tariff Threats; Copper Hits New Record High

European markets advanced on Wednesday, and investors ignored the new U.S. tariff threats. 

Benchmark indexes in Frankfurt, Paris, Milan, and London headed higher in cautious trading ahead of the start of the earnings season this week. 

Investors turned cautious and refrained from making larger bets amid heightened trade tensions with the U.S. after the U.S. president said he plans to announce additional import duties on the EU in retaliation to duties on U.S. technology firms.

The Trump administration's threats are increasingly ignored by the European investors, because Donald Trump always backs down at the last minute and lowers the previously announced arbitrary tariffs.

Banks traded higher after UniCredit SpA increased its direct equity stake in the Germany-based Commerzbank and signaled its intention is for passive investment only. 

Europe Stock Movers 

Mining companies declined amid a drop in copper prices after the U.S. president proposed to levy a 50% tariff on the industrial metal. 

Glencore PLC decreased 2.9% to 299.70 pence, Antofagasta plc dropped 1.9% to 1,885.0 pence, and Anglo American plc fell 1.8% to 2,183.95 pence. 

Italy-based UniCredit SpA increased its stake in Germany's Commerzbank to 20% from 10%, and following the conversion to an equity stake after winning the approval from the European Central Bank, the Federal Reserve Bank, and German regulators. 

The Italian bank reiterated its passive investment in the bank is for financial interest and added it plans to convert its derivative stake and increase its equity holding to 29%. 

UniCredit SpA advanced 3.3% to €60.37, and Commerzbank AG gained 0.6% to €30.14. 

Europe Wednesday

European markets advanced on Wednesday, and investors ignored the new U.S. tariff threats. 

Benchmark indexes in Frankfurt, Paris, Milan, and London headed higher in cautious trading ahead of the start of the earnings season this week. 

Investors turned cautious and refrained from making larger bets amid heightened trade tensions with the U.S. after the U.S. president said he plans to announce additional import duties on the EU in retaliation to duties on U.S. technology firms.

The Trump administration's threats are increasingly ignored by the European investors, because Donald Trump always backs down at the last minute and lowers the previously announced arbitrary tariffs.

Banks traded higher after UniCredit SpA increased its direct equity stake in the Germany-based Commerzbank and signaled its intention is for passive investment only. 

Europe Stock Movers 

Mining companies declined amid a drop in copper prices after the U.S. president proposed to levy a 50% tariff on the industrial metal. 

Glencore PLC decreased 2.9% to 299.70 pence, Antofagasta plc dropped 1.9% to 1,885.0 pence, and Anglo American plc fell 1.8% to 2,183.95 pence. 

Italy-based UniCredit SpA increased its stake in Germany's Commerzbank to 20% from 10%, and following the conversion to an equity stake after winning the approval from the European Central Bank, the Federal Reserve Bank, and German regulators. 

The Italian bank reiterated its passive investment in the bank is for financial interest and added it plans to convert its derivative stake and increase its equity holding to 29%. 

UniCredit SpA advanced 3.3% to €60.37, and Commerzbank AG gained 0.6% to €30.14.