Broker: OCBC Investment Research
Date of Report: 9 July 2025
Global Markets Wobble as Tariff Tensions Rise: Comprehensive Market and Equity Analysis
As trade tensions escalate and global markets react, investors are navigating an environment marked by uncertainty and selective opportunities. This in-depth analysis covers market movements, sector performances, and key equity insights across the United States, Europe, Asia, and Singapore, offering a granular look at both macroeconomic trends and individual company fundamentals.
US Market Update: Trade Tensions and Sector Performance
- Tariff Risks Dominate Headlines: President Donald Trump held firm on existing tariffs, with new 50% duties on copper imports and threats of additional levies on semiconductors and pharmaceuticals. There is a year’s respite before a potential 200% tariff on foreign-made pharmaceuticals is enacted.
- Major Indices:
- Dow Jones Industrial Average: Fell 166 points (-0.37%)
- S&P 500: Slight dip of 0.07%
- Nasdaq Composite: Gained 0.03%, buoyed by Tesla (+1.3%) and Nvidia (+1%)
- Sector Leaders and Laggards:
- Energy was the top performer (+2.72%)
- Consumer staples and utilities each declined more than 1%
- Treasury Weakness: US Treasuries dropped for the fifth consecutive session as global demand for long-term government debt wanes amid a surge in bond auctions.
- Investor Sentiment: Caution prevails despite July’s historically positive record for equities. The measured market reaction to new tariffs, compared with sharp declines three months ago, suggests investors expect Trump’s moves to be negotiating tactics rather than imminent threats.
European Markets: Optimism Amid Tariff Talks
- Stoxx Europe 600 Index: Rose 0.4%, supported by news of US-Japan tariff negotiations.
- EU Seeks Exemptions: The EU is pushing for waivers on the 10% US tariff for products like aircraft, aircraft parts, wine, and spirits. Autos, basic resources, and energy were among the strongest sectors, while real estate lagged.
Asia-Pacific: Trade Negotiation Hopes Lift Sentiment
- MSCI Asia Pacific Index: Up 0.4% as investors focus on potential trade deals, especially between South Korea and Japan ahead of a new US tariff deadline.
- Hong Kong: Shares rebounded, led by Meituan and Alibaba after recent declines driven by food delivery price war concerns.
- China: Solar stocks gained on renewed speculation of consolidation and government support.
Singapore Market Statistics
| Index |
Close |
Net Chg |
% Chg |
| Straits Times Index |
4,047.9 |
16.0 |
0.4% |
| FTSE ST Financials |
1,602.5 |
7.8 |
0.5% |
| FTSE ST REITs |
649.4 |
-9.1 |
-1.4% |
| FTSE ST Real Estate |
653.0 |
-7.6 |
-1.2% |
- Volume: 1,522.0 million (+25.3%)
- Turnover: 1,652.3 million (+42.4%)
- 52-week range: 3,198.4 – 4,058.8
- Gainers/Losers: 327 / 197
Global Indices and Commodities Performance
| Index |
Close |
% Change |
| S&P 500 |
6,225.5 |
-0.1% |
| DJI |
44,240.8 |
-0.4% |
| Nasdaq Comp |
20,418.5 |
0.0% |
| FTSE 100 |
8,854.2 |
0.5% |
| STOXX Europe 600 |
545.7 |
0.4% |
| Nikkei 225 |
39,688.8 |
0.3% |
| Hang Seng Index |
24,148.1 |
1.1% |
| SHSE Comp Index |
3,497.5 |
0.7% |
| SZSE Comp Index |
2,102.4 |
1.3% |
| KLCI |
1,530.1 |
-0.5% |
| FX/Commodity |
Close |
% Change |
| USDSGD |
1.2795 |
0.0% |
| USDJPY |
146.58 |
-0.4% |
| WTI Crude (USD/bbl.) |
68.33 |
0.6% |
| Brent (USD/bbl.) |
70.15 |
0.8% |
| Gold (USD/oz.) |
3,301.9 |
-1.0% |
| Silver (USD/oz.) |
36.76 |
0.0% |
Latest Equity Research Reports: Highlights and Key Ratings
- Nanofilm Technologies International Ltd: Cautiously optimistic for a better FY26. Rating: HOLD, Fair Value: SGD 0.610
- Singapore Property Sector: Tightening measures on Seller’s Stamp Duty (SSD).
- Chinese Telecoms: Quality yield play.
- China Construction Bank: The Preferred Play. Ratings: HOLD (HKD 8.90), BUY (CNY 10.90)
- China Strategy: Increasing and broadening AI adoption.
- China Life Insurance: Lifting fair value estimates. Rating: HOLD (HKD 21.40, CNY 44.25)
- Boustead Singapore: Potential re-rating catalysts on the horizon. Rating: BUY, Fair Value: SGD 1.63
- China CITIC Bank: Hunting for yield. Rating: HOLD (HKD 8.40, CNY 9.20)
- Singapore Strategy: A steady anchor in troubled times.
- Singapore REITs: European real estate for Singapore investors.
- BYD Co Ltd: Overseas expansion tracking well. Rating: BUY (HKD 180.00, CNY 500.00)
- Sheng Siong Group: Defensive play. Rating: HOLD, Fair Value: SGD 1.99
- SIA Engineering Co Ltd: Leaps and bounds. Rating: BUY, Fair Value: SGD 3.50
- Bank of China (Hong Kong): Strong operating performance. Rating: HOLD, Fair Value: HKD 38.00
- Agricultural Bank Of China: Ahead of peers growth. Ratings: HOLD (HKD 5.90), BUY (CNY 6.65)
- MTR Corp: Entering a new CAPEX cycle. Rating: BUY, Fair Value: HKD 31.50
- HK and China Strategy: Silver lining in a bumpy market.
- China CITIC Bank: Relatively high dividend yield. Rating: BUY (HKD 7.80, CNY 8.95)
- ST Engineering Ltd: Buoyed by positive industry sentiment. Rating: HOLD, Fair Value: SGD 8.54
Singapore STI Component Stocks: Detailed Analysis and Key Metrics
Below is a comprehensive table summarizing the top 30 STI stocks, highlighting price, market cap, beta, dividend yield, P/E ratios, and analyst recommendations:
| Code |
Company |
Price (SGD/USD) |
Market Cap (US\$m) |
Beta |
Div Yield (%) |
P/E (Hist) |
P/E (F1) |
P/E (F2) |
Buy |
Hold |
Sell |
| DBS SP |
DBS Group Holdings Ltd |
45.73 |
101,362 |
1.2 |
6.6 / 6.8 |
12 |
12 |
12 |
9 |
10 |
0 |
| OCBC SP |
Oversea-Chinese Banking Corp Ltd |
16.71 |
58,681 |
1.1 |
5.1 / 5.8 |
10 |
10 |
10 |
6 |
10 |
1 |
| ST SP |
Singapore Telecommunications Ltd |
3.95 |
50,945 |
0.8 |
4.8 / 4.6 |
16 |
22 |
20 |
15 |
2 |
1 |
| UOB SP |
United Overseas Bank Ltd |
36.50 |
47,393 |
1.1 |
4.9 / 6.0 |
10 |
10 |
10 |
11 |
7 |
0 |
| STE SP |
Singapore Technologies Engineering Ltd |
8.21 |
20,016 |
0.8 |
2.1 / 2.2 |
36 |
31 |
27 |
10 |
4 |
1 |
| SIA SP |
Singapore Airlines Ltd |
7.15 |
16,861 |
1.0 |
5.6 / 4.1 |
8 |
15 |
15 |
3 |
6 |
5 |
| JM SP |
Jardine Matheson Holdings Ltd |
49.04 |
14,470 |
0.8 |
4.6 / 4.7 |
– |
9 |
8 |
4 |
3 |
0 |
| WIL SP |
Wilmar International Ltd |
2.94 |
14,335 |
0.7 |
5.4 / 5.6 |
12 |
10 |
9 |
5 |
9 |
0 |
| HKL SP |
Hongkong Land Holdings Ltd |
6.18 |
13,508 |
0.9 |
3.7 / 3.9 |
– |
21 |
19 |
9 |
3 |
1 |
Conclusion: Navigating Market Volatility with Informed Insights
With global equities reacting to ongoing trade risks and sector dynamics, investors are advised to remain vigilant. Opportunities persist in specific sectors and stocks, but the landscape remains highly sensitive to policy developments and macroeconomic signals. Staying informed with comprehensive and current analysis is crucial for making sound investment decisions in this evolving environment.
