European Markets Advanced Amid Receding Global Trade Tensions

European markets edged higher on Friday and extended weekly gains amid improving global market sentiment. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after worries about the looming U.S. tariff threats eased. 

Market sentiment got an additional boost after the White House spokesperson confirmed the Trump administration is flexible with the upcoming deadline on July 9 for additional tariffs. 

Moreover, the ceasefire between Iran and Israel held for the third day in a row, calming market anxieties about the global crude oil supply disruptions through the Strait of Hormuz.

On the economic front, France's overall consumer price inflation eased to an annual pace of 0.9% in June, the INSEE reported Friday. 

The uptick in inflation was driven by a higher services inflation of 2.4% compared to 2.1% in the previous month. 

Spain's consumer price inflation increased more than expected to an annual pace of 2.2% in June, but the core rate of inflation held steady at 2.2%.

Europe Indexes and Yields

The DAX index increased by 0.8% to 23,842.37, the CAC-40 index edged higher by 0.8% to 7,618.02, and the FTSE 100 index advanced 0.3% to 8,759.53.

For the week, the DAX increased 2.2%, the CAC-40 increased 1.1%, and the FTSE 100 index edged up 0.5%. 

The yield on 10-year German bonds inched higher to 2.58%, French bonds increased to 3.26%, the UK gilts moved down to 4.47%, and Italian bonds edged higher to 3.50%.

The euro increased to $1.17; the British pound was higher at $1.37; and the U.S. dollar was lower and traded at 79.93 Swiss cents.

Brent crude increased $0.47 to $68.20 a barrel, and the Dutch TTF natural gas was higher by €0.79 to €34.29 per MWh.

U.S. Movers: Nike

Nike Inc. gained 10.7% to $69.25 despite the sporting goods retailer reporting weak results for the fiscal fourth quarter of 2025 ending on May 31.

Revenue edged down to $11.10 billion from $12.61 billion, net income dropped to $211 million from $1.50 billion, and diluted earnings per share fell to 14 cents from 99 cents a year ago.

Direct revenue was down 14% to $4.4 billion, wholesale revenue declined 9% to $6.4 billion, and revenue for Converse was down 26% to $357 million from a year earlier, respectively.

Inventories for the company were $7.5 billion, flat compared to the prior year.

During the fourth quarter, Nike returned approximately $0.8 billion to shareholders in the form of dividends of $591 million, up 6% from the previous year, and share repurchases of $202 million.

As of May 31, a total of $6.0 billion remained under the company’s repurchase authorization through June 2026.

Revenue in the twelve months declined to $46.31 billion from $51.36 billion, net income edged down to $3.22 billion from $5.70 billion, and diluted earnings per share fell to $2.16 from $3.73 a year earlier.

U.S. Movers: Nike

Nike Inc. gained 10.7% to $69.25 despite the sporting goods retailer reporting weak results for the fiscal fourth quarter of 2025 ending on May 31.

Revenue edged down to $11.10 billion from $12.61 billion, net income dropped to $211 million from $1.50 billion, and diluted earnings per share fell to 14 cents from 99 cents a year ago.

Direct revenue was down 14% to $4.4 billion, wholesale revenue declined 9% to $6.4 billion, and revenue for Converse was down 26% to $357 million from a year earlier, respectively.

Inventories for the company were $7.5 billion, flat compared to the prior year.

During the fourth quarter, Nike returned approximately $0.8 billion to shareholders in the form of dividends of $591 million, up 6% from the previous year, and share repurchases of $202 million.

As of May 31, a total of $6.0 billion remained under the company’s repurchase authorization through June 2026.

Revenue in the twelve months declined to $46.31 billion from $51.36 billion, net income edged down to $3.22 billion from $5.70 billion, and diluted earnings per share fell to $2.16 from $3.73 a year earlier.

Europe Movers: Hornbach Baumarkt

Hornbach Baumarkt AG & Co. KgaA eased 0.1% to €99.40 after the Germany-based garden center retailer reported results for the fiscal first quarter of 2025 ending on May 31.

Net sales increased to €1.91 billion from €1.80 billion, pre-tax earnings climbed to €148.8 million from €131.3 million, and diluted earnings per share rose to €6.62 from €5.96 a year ago.

Same-store sales jumped 3.4% in the quarter, as sales in the other European countries segment rose 5.9%, and in Luxembourg and the Netherlands, they were up 10.9%.

Net sales in Germany increased 4.7% to €870.0 million from €831.2 million, while sales outside Germany grew 6.9% to €940.9 million from €880.1 million a year earlier, respectively.

Online sales accounted for 13.1% of total sales in the quarter, and they increased 11.1% to €236.3 million from €212.7 million in the previous year.

The company guided full-year net sales to be flat or slightly above the previous year’s level of €6.20 billion and adjusted EBIT to be flat at €269.5 million.

Europe Movers: Hornbach Baumarkt

Hornbach Baumarkt AG & Co. KgaA eased 0.1% to €99.40 after the Germany-based garden center retailer reported results for the fiscal first quarter of 2025 ending on May 31.

Net sales increased to €1.91 billion from €1.80 billion, pre-tax earnings climbed to €148.8 million from €131.3 million, and diluted earnings per share rose to €6.62 from €5.96 a year ago.

Same-store sales jumped 3.4% in the quarter, as sales in the other European countries segment rose 5.9%, and in Luxembourg and the Netherlands, they were up 10.9%.

Net sales in Germany increased 4.7% to €870.0 million from €831.2 million, while sales outside Germany grew 6.9% to €940.9 million from €880.1 million a year earlier, respectively.

Online sales accounted for 13.1% of total sales in the quarter, and they increased 11.1% to €236.3 million from €212.7 million in the previous year.

The company guided full-year net sales to be flat or slightly above the previous year’s level of €6.20 billion and adjusted EBIT to be flat at €269.5 million.

Japan's Retail Sales Growth and Tokyo Core Inflation Slows, Nikkei Rises Above 40K

Japan's indexes advanced to multi-month highs amid improving sentiment and receding tensions about the prolonged trade war with the U.S. 

The Nikkei 225 Stock Average advanced more than 1.5%, and the broader Topix gained 1.2%, and for the week they advanced 5.3% and 3.3%, respectively. 

Tokyo stocks traded higher following gains in overnight trading in New York after the White House spokesperson confirmed that tariff deadlines are flexible and could be extended, contradicting repeated claims made by the U.S. president. 

Despite multiple claims by Donald Trump, not one trade deal has been signed by the Trump administration after three months of chaotic negotiations and conflicting assertions.

Over the last four months, Trump falsely claimed that several key trading partners are ready to set up manufacturing operations totaling more than $600 billion and avoid sky-high U.S. tariffs. 

On the contrary, the constant trade policy flip-flops have unnerved foreign investors and frozen possible direct investments as manufacturing companies assess the policy durability and stability. 

Japan's Retail Sales Growth Slowed In June

Japan's retail sales rose at a slower pace in June and expanded for the 38th consecutive month, according to a report released by the Ministry of Economy, Trade & Industry. 

Retail sales rose at the slowest pace since February, when sales expanded at an annual pace of 1.3%.

The sustained increase in consumption is driven by rising wages; apparel and personal goods sales soared 7.2%, and pharmaceutical and cosmetic sales advanced 4.6%, offset by sales decline in department stores by 6.1%.

Tokyo-Area Inflation Stays Above BOJ's Target Rate 

The Tokyo area's consumer price inflation advanced above 3% for the eighth consecutive month in June, the Statistics Bureau of Japan reported Friday. 

The Tokyo area's overall inflation slowed to an annual pace of 3.1% in June from 3.4% in May and stayed above the 2% target rate set by the Bank of Japan. 

Core inflation, which excludes volatile food but not energy prices, eased to an annual rate of 3.1% in June from 3.4% in the previous month.

The largest metropolitan area's inflation gauge serves as a harbinger to the national inflation trend, and cooling but elevated inflation rates are likely to support the Bank of Japan's gradual approach in increasing interest rates in the months ahead. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average jumped 1.6% to 40,213.06, and the broader Topix advanced 1.3% to 2,840.84. 

Ocean shipping companies traded higher amid expectations that the temporary ceasefire between Iran and Israel is likely to hold. 

Nippon Yusen KK advanced 0.8% to ¥5,144.0, Kawasaki Kisen Kaisha Ltd. advanced 1.1% to ¥2,058.0, and Mitsui O.S.K. Lines Ltd. gained 0.4% to ¥4,856.0. 

Artificial intelligence-linked semiconductor equipment makers advanced following a surge in tech stocks in overnight trading. 

Tokyo Electron Ltd. jumped 4.5% to ¥27,575.0, Advantest Corp. decreased 1.1% to ¥10,580.0, and Disco Corp. jumped 6.7% to ¥41,700.0. 

Retailers were in focus after retail sales advanced for the 38th consecutive month in June. 

Seven & I Holdings declined 0.1% to ¥2,286.50, Fast Retailing Co. Ltd. advanced 1.4% to ¥49,190.0, Takashimaya Co. Ltd. gained 1.6% to ¥1,092.50, and Isetan Mitsukoshi Holdings edged up 0.4% to ¥2,205.0. 

Japan's Retail Sales Growth and Tokyo Core Inflation Slows, Nikkei Rises Above 40K

Japan's indexes advanced to multi-month highs amid improving sentiment and receding tensions about the prolonged trade war with the U.S. 

The Nikkei 225 Stock Average advanced more than 1.5%, and the broader Topix gained 1.2%, and for the week they advanced 5.3% and 3.3%, respectively. 

Tokyo stocks traded higher following gains in overnight trading in New York after the White House spokesperson confirmed that tariff deadlines are flexible and could be extended, contradicting repeated claims made by the U.S. president. 

Despite multiple claims by Donald Trump, not one trade deal has been signed by the Trump administration after three months of chaotic negotiations and conflicting assertions.

Over the last four months, Trump falsely claimed that several key trading partners are ready to set up manufacturing operations totaling more than $600 billion and avoid sky-high U.S. tariffs. 

On the contrary, the constant trade policy flip-flops have unnerved foreign investors and frozen possible direct investments as manufacturing companies assess the policy durability and stability. 

Japan's Retail Sales Growth Slowed In June

Japan's retail sales rose at a slower pace in June and expanded for the 38th consecutive month, according to a report released by the Ministry of Economy, Trade & Industry. 

Retail sales rose at the slowest pace since February, when sales expanded at an annual pace of 1.3%.

The sustained increase in consumption is driven by rising wages; apparel and personal goods sales soared 7.2%, and pharmaceutical and cosmetic sales advanced 4.6%, offset by sales decline in department stores by 6.1%.

Tokyo-Area Inflation Stays Above BOJ's Target Rate 

The Tokyo area's consumer price inflation advanced above 3% for the eighth consecutive month in June, the Statistics Bureau of Japan reported Friday. 

The Tokyo area's overall inflation slowed to an annual pace of 3.1% in June from 3.4% in May and stayed above the 2% target rate set by the Bank of Japan. 

Core inflation, which excludes volatile food but not energy prices, slowed to an annual rate of 3.1% in June from 3.6% in the previous month.

The largest metropolitan area's inflation gauge serves as a harbinger to the national inflation trend, and cooling but elevated inflation rates are likely to support the Bank of Japan's gradual approach in increasing interest rates in the months ahead. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average jumped 1.6% to 40,213.06, and the broader Topix advanced 1.3% to 2,840.84. 

Ocean shipping companies traded higher amid expectations that the temporary ceasefire between Iran and Israel is likely to hold. 

Nippon Yusen KK advanced 0.8% to ¥5,144.0, Kawasaki Kisen Kaisha Ltd. advanced 1.1% to ¥2,058.0, and Mitsui O.S.K. Lines Ltd. gained 0.4% to ¥4,856.0. 

Artificial intelligence-linked semiconductor equipment makers advanced following a surge in tech stocks in overnight trading. 

Tokyo Electron Ltd. jumped 4.5% to ¥27,575.0, Advantest Corp. decreased 1.1% to ¥10,580.0, and Disco Corp. jumped 6.7% to ¥41,700.0. 

Retailers were in focus after retail sales advanced for the 38th consecutive month in June. 

Seven & I Holdings declined 0.1% to ¥2,286.50, Fast Retailing Co. Ltd. advanced 1.4% to ¥49,190.0, Takashimaya Co. Ltd. gained 1.6% to ¥1,092.50, and Isetan Mitsukoshi Holdings edged up 0.4% to ¥2,205.0. 

China Indexes Advanced 3% Amid Trade Deal Hopes, Rate Cut Expectations Rise in Hong Kong

China's stock market indexes diverged on Friday after a week of advance amid elevated geopolitical tensions in the Middle East.

The Hang Seng index increased 0.1% and extended its weekly advance to 4%, and the mainland-focused CSI 300 index edged lower and trimmed its weekly gain to 3%. 

Market sentiment has remained positive despite elevated tensions in the Middle East and looming U.S. tariff uncertainties offset by global investors increasing exposure to stocks in Asia and Europe.

Investors in China remained skeptical amid mixed signals and constant change in trade policy and unverifiable claims from the unpredictable U.S. presidential administration.

Moreover, global investors continue to lower exposure to the U.S. dollar-denominated assets as the world's reserve currency loses its luster.

Traders are hoping that the Federal Reserve is more likely to consider a rate cut at its next meetings at the end of July and in September amid a weakening inflation outlook.

On Thursday, the Hong Kong Monetary Authority intervened to defend the currency's peg amid strong demand for the U.S. dollar from importers and mainland-based businesses.

China Indexes and Stocks 

The Hang Seng index added 0.1% to 24,343.83, and the mainland-focused CSI 300 index inched lower 0.1% to 3,945.02. 

Xiaomi Corp. increased 3.4% to HK $58.85, and the company set the price for its luxury electric vehicle SUV lower than the comparable model made by Tesla. 

Internet-linked stocks advanced amid sustained buying by foreign investors. 

Alibaba Group Holding Ltd. increased 0.2% to HK $112.50, Tencent Holdings declined 0.1% to HK $511.50, and Meituan decreased 0.1% to HK $129.50. 

China Indexes Advanced 3% Amid Trade Deal Hopes, Rate Cut Expectations Rise in Hong Kong

China's stock market indexes diverged on Friday after a week of advance amid elevated geopolitical tensions in the Middle East.

The Hang Seng index increased 0.1% and extended its weekly advance to 4%, and the mainland-focused CSI 300 index edged lower and trimmed its weekly gain to 3%. 

Market sentiment has remained positive despite elevated tensions in the Middle East and looming U.S. tariff uncertainties offset by global investors increasing exposure to stocks in Asia and Europe.

Investors in China remained skeptical amid mixed signals and constant change in trade policy and unverifiable claims from the unpredictable U.S. presidential administration.

Moreover, global investors continue to lower exposure to the U.S. dollar-denominated assets as the world's reserve currency loses its luster.

Traders are hoping that the Federal Reserve is more likely to consider a rate cut at its next meetings at the end of July and in September amid a weakening inflation outlook.

China Indexes and Stocks 

The Hang Seng index added 0.1% to 24,343.83, and the mainland-focused CSI 300 index inched lower 0.1% to 3,945.02. 

Xiaomi Corp. increased 3.4% to HK $58.85, and the company set the price for its luxury electric vehicle SUV lower than the comparable model made by Tesla. 

Internet-linked stocks advanced amid sustained buying by foreign investors. 

Alibaba Group Holding Ltd. increased 0.2% to HK $112.50, Tencent Holdings declined 0.1% to HK $511.50, and Meituan decreased 0.1% to HK $129.50.