OCBC Investment Research
Date of Report: 29 May 2025

Global Markets Retreat Amid Legal Setback for US Tariffs: Full Market Analysis and Singapore Equity Spotlight

Global Market Overview: Volatility Returns After Legal Blow to US Tariffs

Global equities took a breather following a strong risk-on rally, as fresh catalysts were lacking and mixed earnings signaled caution. The US trade court’s landmark decision to declare President Donald Trump’s global tariffs illegal injected new volatility into the markets, unwinding prior pessimism around trade but dealing a significant blow to the Republican economic agenda. The Trump administration is expected to appeal this setback, adding another layer of uncertainty for policy and markets in the months ahead.

US Market Recap: Tech Shares Lead Mixed Session

• The S&P 500 fell 0.56%, the Nasdaq Composite shed 0.51%, and the Dow Jones Industrial Average slid 0.58% or 244.95 points.
• US Treasuries saw demand in a \$70 billion five-year auction, with the 10-year yield rising to 4.48% and the 2-year at 3.99%.
• Okta shares plummeted over 16% despite beating estimates, due to cautious forward guidance amid macro uncertainties.
• Nvidia surged 5% after hours, delivering a robust revenue outlook and confirming ramped-up production of its Blackwell chip, offsetting China weakness.
• Other tech giants like Microsoft and Meta Platforms showed resilient outlooks despite ongoing trade policy turbulence.
• FOMC minutes revealed a patient approach to interest rates, with officials weighing the risks of rising inflation against growing unemployment.

European and Asian Markets: Modest Pullback, Select Sectors Shine

• Europe’s Stoxx 600 dropped 0.61%, snapping a two-day rally as bond yields climbed. Real estate and autos outperformed, while miners and retail lagged.
• Asia’s MSCI Pacific Index closed flat, held back by weakness in Chinese tech stocks even as semiconductor shares gained ground.

Singapore Market Snapshot

• Volume: 1,232.5 million (+9.6%)
• Turnover: 1,214.0 million
• 52-week range: 3,198.4 – 4,005.2
• Advancers vs Decliners: 236 / 223

Key World Indices and Commodities

Latest Equity Research Highlights: Key Stock Calls and Sector Views

Recent Research Reports and Ratings

Singapore Market Deep Dive: STI Stocks Ranked by Market Capitalisation

Sectoral and Company-Specific Highlights

Financials and Real Estate

• DBS Group Holdings Ltd remains the largest by market capitalization, showing robust dividend yields and strong buy recommendations.
• Oversea-Chinese Banking Corp and United Overseas Bank both continue to offer attractive yields and stable earnings profiles with buy consensus.
• CapitaLand Integrated Commercial Trust and CapitaLand Ascendas REIT maintain above-average yields, reflecting the appeal of Singapore REITs amidst global rate uncertainty.

Industrials, Technology, and Energy

• Singapore Technologies Engineering and Keppel Ltd exhibit steady dividend profiles and moderate valuation multiples, reinforcing their position as core holdings in the Singapore market.
• Sembcorp Industries shows a balanced yield and a positive earnings trajectory, with buy ratings continuing to dominate analyst views.

Consumer, Logistics, and Diversified Leaders

• Wilmar International and Singtel stand out for their steady dividend streams and diversified earnings base.
• SATS Ltd and Venture Corp are highlighted for their yield attractiveness and improving operational outlooks.

Additional Noteworthy Stocks

• City Developments Ltd, DFI Retail Group Holdings, Frasers Centrepoint Trust, and Mapletree Logistics Trust all feature in the STI with robust dividend yields and solid market cap standing.
• Other top-30 STI constituents such as Jardine Cycle & Carriage, Genting Singapore, Yangzijiang Shipbuilding, Seatrium, and Mapletree Pan Asia Commercial Trust round out a well-diversified blue-chip index.

Strategic Takeaways for Investors

• The recent US trade court decision and expected appeal by the Trump administration are setting the stage for a potentially volatile year ahead.
• Investors are advised to maintain diversified, actively managed portfolios amid ongoing macro and policy uncertainty.
• Singapore’s equity market continues to offer attractive yields and resilient earnings, especially among its major financial, real estate, and consumer names.

Conclusion

Equity markets are navigating a complex landscape shaped by legal, policy, and economic cross-currents. The Singapore market stands out for its stability and yield, while global developments demand vigilance and flexibility from investors. Staying invested, diversified, and nimble remains the optimal approach as the second half of 2025 unfolds.