Broker: OCBC Investment Research
Date of Report: 14 July 2025
Global Markets Recoil as Trade Tensions Mount: Key Insights and Singapore Market Deep Dive
US Stocks Slide Amid Escalating Trade War
US equity markets ended the week on a sour note as an intensification of the trade war dragged sentiment lower. The Dow Jones Industrial Average fell by 279.13 points, or 0.63%, while the S&P 500 and Nasdaq Composite declined by 0.33% and 0.22% respectively. For the week, the Dow shed 1%, the S&P 500 dipped 0.3%, and the Nasdaq slipped 0.1%.
- President Donald Trump announced a 35% tariff on certain Canadian goods effective 1 August, citing fentanyl concerns.
- Tariff ultimatums of 30% were also issued for the EU and Mexico, contingent on negotiations.
- The 30-year Treasury yield saw its largest weekly climb since May, reflecting investor anxieties over inflation spurred by the ongoing tariff battles.
- Federal Reserve officials have paused interest rate cuts, citing inflation concerns linked to tariffs.
- Gold continued its robust performance, supported by central-bank buying, ETF inflows, geopolitical tensions, and trade uncertainty. The precious metal recently set a new intraday record above US\$3,500 an ounce and maintains upward momentum for the second half of the year.
Attention now turns to the US corporate earnings season, with the six largest banks set to report second-quarter results. S&P 500 companies are forecast to post 5.8% profit growth year-on-year, a downgrade from the 10.2% expected in April.
European Markets Under Pressure Despite Recent Gains
The Stoxx Europe 600 Index declined by 1.01%, with healthcare and consumer products & services sectors leading the drop. Banks were notable laggards; DNB Bank ASA plunged 8.8% after Q2 income from lending missed estimates. While European stocks gained 1.2% for the week, the benchmark remains 2.8% below its March record high.
Asia Pacific Markets: Outperformance Faces Test
The MSCI Asia Pacific Index gained as much as 0.6% before trimming advances. Alibaba and Samsung Electronics provided significant support to the index, while stock benchmarks in Hong Kong and Indonesia posted gains. Chinese equities have recently outperformed amid optimism for improved US-China relations, but upcoming economic data, including Q2 GDP, could test this bullish momentum.
Singapore Market Snapshot: A Resilient Anchor
| Index |
Close |
Net Change |
% Change |
| Straits Times Index |
4,087.8 |
12.1 |
0.3% |
| FTSE ST Financials |
1,613.8 |
6.1 |
0.4% |
| FTSE ST REITs |
655.2 |
2.3 |
0.3% |
| FTSE ST Real Estate |
660.7 |
2.2 |
0.3% |
- Volume: 1,587.9 million (+1.8%)
- Turnover: S\$1,346.0 million (+9.9%)
- 52-week range: 3,198.4 – 4,103.0
- Gainers/Losers: 295/209
Global Index and Commodities Overview
| World Index |
Close |
Change |
% Change |
| S&P 500 |
6,259.8 |
-20.7 |
-0.3% |
| DJI |
44,371.5 |
-279.1 |
-0.6% |
| Nasdaq Comp |
20,585.5 |
-45.1 |
-0.2% |
| FTSE 100 |
8,941.1 |
-34.5 |
-0.4% |
| STOXX Europe 600 |
547.3 |
-5.6 |
-1.0% |
| Nikkei 225 |
39,569.7 |
-76.7 |
-0.2% |
| Hang Seng Index |
24,139.6 |
111.2 |
0.5% |
| SHSE Comp Index |
3,510.2 |
0.5 |
0.0% |
| SZSE Comp Index |
2,116.9 |
9.8 |
0.5% |
| Commodity / FX |
Close |
% Change |
| USDSGD |
1.2803 |
-0.1% |
| USDJPY |
147.43 |
-0.8% |
| USDCNY |
7.170 |
0.1% |
| USDHKD |
7.850 |
0.0% |
| WTI Crude (USD/bbl.) |
68.45 |
2.8% |
| Brent (USD/bbl.) |
70.36 |
2.5% |
| Gold (USD/oz.) |
3,355.6 |
0.9% |
| Silver (USD/oz.) |
38.42 |
3.8% |
Recent Analyst Reports: Market Themes and Stock Picks
A summary of the latest research covers a mix of macro, sector, and individual stock reports:
- Nanofilm Technologies International Ltd (SG): Cautiously optimistic outlook for FY26. Hold at SGD 0.610.
- Singapore Property Sector: Focused on tightening measures relating to Seller’s Stamp Duty (SSD).
- Chinese Telecoms (HK/CH): Positioned as quality yield plays.
- China Construction Bank (HK: 939 HK; CH: 601939 CH): The bank is preferred in the sector. Hold at HKD 8.90, Buy at CNY 10.90.
- China Strategy: Increasing and broadening AI adoption is a sector theme.
- China Life Insurance (HK: 2628 HK; CH: 601628 CH): Fair value estimate raised. Hold at HKD 21.40, CNY 44.25.
- Boustead Singapore (SG: BOCS SP): Potential re-rating catalysts seen. Buy at SGD 1.63.
- China CITIC Bank (HK: 998 HK; CH: 601998 CH): Hunting for yield. Hold at HKD 8.40, CNY 9.20.
- Singapore Strategy: Market seen as a steady anchor in turbulent times.
- Singapore REITs: European real estate opportunities for Singapore investors.
- BYD Co Ltd (HK: 1211 HK; CH: 002594 CH): Overseas expansion progressing well. Buy at HKD 180.00, CNY 500.00.
- Sheng Siong Group (SG: SSG SP): Defensive play. Hold at SGD 1.99.
- SIA Engineering Co Ltd (SG: SIE SP): Strong growth momentum. Buy at SGD 3.50.
- Bank of China (Hong Kong) (HK: 2388 HK): Strong operating performance. Hold at HKD 38.00.
- Agricultural Bank Of China (HK: 1288 HK; CH: 601288 CH): Ahead of peers in growth. Hold at HKD 5.90, Buy at CNY 6.65.
- MTR Corp (HK: 66 HK): Entering a new capital expenditure cycle. Buy at HKD 31.50.
- China CITIC Bank (HK: 988 HK; CH: 601998 CH): Relatively high dividend yield. Buy at HKD 7.80, CNY 8.95.
- ST Engineering Ltd (SG: STE SP): Buoyed by positive industry sentiment. Hold at SGD 8.54.
Singapore STI Constituents: Key Metrics and Broker Calls
| Code |
Company |
Last Price (SGD) |
Market Cap (US\$m) |
Beta |
Div Yield F1 (%) |
P/E F1 (x) |
Buy |
Hold |
Sell |
Total Recs |
| DBS SP |
DBS Group Holdings Ltd |
45.99 |
101,954 |
1.2 |
6.7 |
12 |
10 |
9 |
0 |
19 |
| OCBC SP |
Oversea-Chinese Banking Corp Ltd |
16.89 |
59,324 |
1.1 |
5.7 |
10 |
11 |
7 |
1 |
19 |
| ST SP |
Singapore Telecommunications Ltd |
4.08 |
52,630 |
0.9 |
4.5 |
23 |
15 |
2 |
1 |
18 |
| UOB SP |
United Overseas Bank Ltd |
36.86 |
47,856 |
1.1 |
5.9 |
10 |
7 |
11 |
0 |
18 |
| STE SP |
Singapore Technologies Engineering Ltd |
8.08 |
19,702 |
0.8 |
2.3 |
30 |
4 |
10 |
1 |
15 |
| SIA SP |
Singapore Airlines Ltd |
7.25 |
17,113 |
1.0 |
4.0 |
15 |
3 |
6 |
5 |
14 |
| JM SP |
Jardine Matheson Holdings Ltd |
49.00 |
14,458 |
0.8 |
4.7 |
9 |
4 |
3 |
0 |
7 |
| WIL SP |
Wilmar International Ltd |
2.95 |
14,386 |
0.7 |
5.6 |
10 |
9 |
5 |
0 |
14 |
| HKL SP |
Hongkong Land Holdings Ltd |
6.27 |
13,700 |
0.9 |
3.8 |
21 |
9 |
3 |
1 |
13 |
| SGX SP |
Singapore Exchange Ltd |
15.46 |
12,908 |
0.8 |
2.4 |
26 |
7 |
6 |
3 |
16 |
- Dividend yields across top Singapore stocks remain attractive, notably among banks and REITs.
- P/E ratios for the largest banks (DBS, OCBC, UOB) range from 10x to 12x for forward earnings, supporting their appeal as value and income plays.
- Singapore Exchange and CapitaLand trusts continue to offer defensive characteristics with steady yields.
Conclusion: Navigating Volatility with Defensive Plays and Regional Opportunities
The global market environment remains challenging, with escalating trade tensions and inflationary fears impacting sentiment across regions. While the US and Europe face headwinds, Asia—particularly China and Singapore—presents opportunities for discerning investors. Singapore’s market, anchored by strong banks, resilient REITs, and leading industrials, offers relative stability. Investors are advised to monitor earnings releases closely and remain attuned to macro developments, especially on the trade and inflation fronts.
OCBC Investment Research continues to provide comprehensive coverage and actionable insights, guiding investors through a period of heightened uncertainty with a focus on quality, yield, and resilience.
