OCBC Investment Research
Date of Report: 27 June 2025

Global Markets Rally on Policy Moves, Tech Surge, and Strategic Shifts: In-Depth Analysis of Latest Market Trends and Top Stocks

Overview: Market Momentum Builds Across US, Europe, and Asia

Recent global market action highlights robust investor sentiment driven by policy shifts, strong tech performance, and strategic corporate initiatives.

• US Markets: S&P 500 advanced 0.8% to 6,141.02, just shy of an all-time high. Nasdaq 100 rose 0.9%, fueled by tech gains. The Cboe Volatility Index (VIX) remained below 17, signaling continued optimism despite geopolitical tensions and softer economic data.
• Europe: The Stoxx Europe 600 Index closed flat after intraday gains. Mining stocks benefited from higher metal prices, while consumer and personal care sectors lagged. Carrefour SA plummeted to its lowest since 1993, while H&M surged 3.7% on strong earnings and cost management.
• Asia: The MSCI Asia Pacific Index climbed up to 0.9%, marking its strongest three-day streak since April and reaching its highest point since September 2021. Tech stocks led, with Nvidia reclaiming the title of the world’s most valuable company, highlighting ongoing enthusiasm for AI-driven trades.

Key Drivers in the US Market

• Weekly jobless claims fell, but continued jobless claims hit the highest level since November 2021, indicating prolonged unemployment for some Americans.
• The latest GDP revision came in below expectations as consumer spending weakened, especially in services.
• The White House denied reports of an imminent replacement for Federal Reserve Chair Jerome Powell. Instead, President Trump is pushing Congress to fast-track the “Big Beautiful Bill,” a major spending initiative that could boost investment and high-end consumption, potentially lifting equities in the second half of 2025.
• JPMorgan Chase & Co. and Goldman Sachs Group Inc. hit record highs after the Federal Reserve moved to lower a key leverage ratio, easing capital requirements for banks.
• Microsoft Corp. shares climbed as analysts increased price targets, citing strong momentum in its Azure cloud platform. Apple Inc. slipped on lukewarm expectations for the next iPhone lineup.

Singapore Market Snapshot

Market turnover stood at 1,306.8 million, down 11.8%, with 291 gainers versus 189 losers. The Straits Times Index traded in a 52-week range of 3,198.4 to 4,005.2.

Global Indices and Commodity Recap

Research Insights: China Life Insurance in Focus

China Life Insurance (2628 HK / 601628 CH): Upward Momentum and Strategic Shifts

China Life Insurance shares have rebounded sharply after the initial “Liberation Day” tariff selloff. The company’s management is focused on addressing asset-liability matching risks and boosting operational efficiency.

• Fair Value Upgrade: The fair value estimate is raised from HKD 18.95 to HKD 21.40 (2628 HK) and from CNY 38.75 to CNY 44.25 (601628 CH). The rating remains ‘Hold’ as recent gains reflect the positives already priced in.
• Product Strategy: Emphasis will be on participating annuities and whole life products with higher sum insured. The agency team will be streamlined, prioritizing frontline sales and improved policy persistency.
• Cost Management: Guaranteed returns on existing policies are about 2.9%, with breakeven investment returns below 2.5%. Management expects these ratios to improve post-2025, relieving low interest rate pressure.
• Investment Focus: More allocation to long-duration bonds and equities (FVOCI), as the current mix lags behind peers.
• ESG Improvements: Enhanced cybersecurity, ISO 27001 certification, staff and vendor privacy training, and a board majority independent of management. However, government representatives still occupy CEO and Chairperson roles, and recurring related-party transactions remain a concern for minority shareholders. Governance is rated average globally, with ESG factors integrated into investment strategies.

Latest Reports and Key Company Developments

Singapore Blue-Chip Stocks: Market Capitalisation and Key Metrics

Singapore’s top stocks by market capitalization present a diverse mix of banking, real estate, industrials, and consumer plays. Key statistics as of 26 June 2025 are summarized below:

Conclusion: Opportunities and Risks in a Dynamic Market Environment

Global equity markets are responding positively to both macroeconomic policy developments and sector-specific drivers. With the US signaling potential fiscal expansion, Europe showing resilience in select sectors, and Asia’s tech rally in full swing, investors are finding a growing number of opportunities. However, ongoing geopolitical tensions and uneven economic recovery remain key risks. In Singapore, blue-chip stocks continue to offer attractive yields and stability, while companies like China Life Insurance are strategically adapting to a complex landscape.