OCBC Investment Research
Date of Report: 2 July 2025
Global Markets Face Crosswinds Amid Stimulus, Tariff Threats, and Sector Rotations: In-Depth Analysis of Key Stocks and Sectors
Market Overview: Wall Street Volatility and Sector Rotations
The global financial markets presented a mixed landscape, with Wall Street experiencing notable sector rotations. The S&P 500 and Nasdaq Composite retreated from record highs, while the Dow Jones Industrial Average inched closer to a historic peak. Investors pivoted away from overbought technology megacaps, shifting focus towards economically sensitive sectors such as materials and small caps, which buoyed the Dow by 0.91% (an increase of 400.17 points). The Dow Transportation Index, a key economic barometer, surged by 2.9%, reflecting optimism over potential further stimulus.
Key highlights:
Megacap tech stocks saw sharp swings amid renewed risk aversion, particularly after President Donald Trump’s threats to increase tariffs on Japan.
Tesla shares declined following a public dispute between CEO Elon Musk and President Trump, with Musk criticizing Trump’s tax and spending bill, and Trump retaliating by threatening to withdraw billions in federal subsidies from Musk’s companies.
Trump’s tax cut-and-spending bill passed the Senate, drawing investor attention to its stimulative potential versus its multi-trillion-dollar cost. The bill faces a tight deadline in the House of Representatives, with the Republican party holding a slim majority and a 4 July deadline looming.
Trump indicated no intention to extend the 9 July deadline for raising tariffs on trading partners, leading Federal Reserve Chair Jerome Powell to reiterate a cautious stance on rate cuts, opting to “wait and learn more” before acting.
U.S. Economic Indicators and Rate Cut Prospects
Manufacturing activity saw a modest uptick to 49.0 from 48.5, slightly above expectations, suggesting limited immediate impact from tariffs.
The upcoming nonfarm payrolls report is expected to provide further insight into the possibility of a July rate cut, with money markets pricing a 21.2% chance for a cut and approximately 64 basis points of easing by year-end.
European and Asian Market Movements
The Stoxx Europe 600 Index declined by 0.21%, led by weakness in defense shares as geopolitical tensions eased. UK homebuilders were pressured by the largest drop in house prices in over two years, attributed to higher transaction taxes.
In Asia, the MSCI Asia Pacific Index rose 0.4%, reaching its highest level since September 2021. Taiwan’s tech sector and currency rebound fueled the region’s best quarterly performance in over two years, underpinned by dollar weakness and renewed AI enthusiasm.
Singapore Market Snapshot
| Index |
Close |
Net Chg |
% Chg |
| Straits Times Index |
3,989.8 |
25.5 |
0.6% |
| FTSE ST Financials |
1,575.7 |
7.6 |
0.5% |
| FTSE ST REITs |
656.8 |
-0.3 |
0.0% |
| FTSE ST Real Estate |
656.2 |
3.8 |
0.6% |
- Volume: 1,253.9m (-48.9%)
- Turnover: 1,134.8m (-15.2%)
- 52-week range: 3,198.4 – 4,005.2
- Gainers / Losers: 251 / 146
World Indices Performance
| Index |
Close |
Change |
% Chg |
| S&P 500 |
6,198.0 |
-6.9 |
-0.1% |
| DJI |
44,494.9 |
400.2 |
0.9% |
| Nasdaq Comp |
20,202.9 |
-166.8 |
-0.8% |
| FTSE 100 |
8,785.3 |
24.4 |
0.3% |
| STOXX Europe 600 |
540.3 |
-1.1 |
-0.2% |
| Nikkei 225 |
39,986.3 |
-501.1 |
-1.2% |
| Hang Seng Index |
24,072.3 |
-211.9 |
-0.9% |
| SHSE Comp Index |
3,457.7 |
13.3 |
0.4% |
| SZSE Comp Index |
2,078.9 |
4.0 |
0.2% |
| SHSE SZSE CSI 300 |
3,942.8 |
6.7 |
0.2% |
| KLCI |
1,541.5 |
8.6 |
0.6% |
| JCI |
6,915.4 |
-12.3 |
-0.2% |
| SET |
1,110.0 |
20.5 |
1.9% |
| KOSPI |
3,089.7 |
18.0 |
0.6% |
| TWSE |
22,553.7 |
297.7 |
1.3% |
FX & Commodities
- USDSGD: 1.2728 (-0.1%)
- USDJPY: 143.42 (0.4%)
- USDCNY: 7.166 (0.0%)
- USDHKD: 7.850 (0.0%)
- WTI Crude: USD 65.45/bbl (0.5%)
- Brent: USD 67.11/bbl (-0.7%)
- Gold: USD 3,338.8/oz (1.1%)
- Silver: USD 36.04/oz (-0.2%)
Research Coverage Changes: Under Review
Due to internal resource reallocation, the following stocks are set to Under Review status:
- BYD Co Ltd – H, BYD Co Ltd – A
- CNOOC Ltd
- Hang Seng Bank Ltd
- Standard Chartered Plc
- HSBC Holdings PLC (Hong Kong & London)
- BOC Hong Kong Holdings Ltd
- Haier Smart Home Co Ltd – H, Haier Smart Home Co Ltd – A
- Alibaba Group Holding Ltd, Alibaba Group Holding – SP ADR
- JD.Com Inc – ADR, JD.Com Inc – CL A
- MTR Corp
Latest OCBC Investment Research Reports: Key Highlights
| No. |
Date |
Market |
Stock/Sector |
Report Title |
Bloomberg Ticker |
Rating |
Fair Value |
| 1 |
30 Jun 2025 |
HK, CH |
Chinese Telecoms |
Quality yield play |
– |
– |
– |
| 2 |
27 Jun 2025 |
HK, CH |
China Construction Bank |
The Preferred Play |
939 HK, 601939 CH |
HOLD, BUY |
HKD 8.90, CNY 10.90 |
| 3 |
27 Jun 2025 |
CH |
China Strategy |
Increasing and broadening AI adoption |
– |
– |
– |
| 4 |
26 Jun 2025 |
HK, CH |
China Life Insurance |
Lifting Our Fair Value Estimate |
2628 HK, 601628 CH |
HOLD |
HKD 21.40, CNY 44.25 |
| 5 |
25 Jun 2025 |
SG |
Boustead Singapore |
Potential Re-Rating Catalysts On The Horizon |
BOCS SP |
BUY |
SGD 1.63 |
| 6 |
25 Jun 2025 |
HK, CH |
China CITIC Bank |
Hunting for Yield |
998 HK, 601998 CH |
HOLD |
HKD 8.40, CNY 9.20 |
| 7 |
24 Jun 2025 |
SG |
Singapore Strategy |
A Steady Anchor In Troubled Times |
– |
– |
– |
| 8 |
23 Jun 2025 |
SG |
Singapore REITs |
European Real Estate For The Singapore Investor |
– |
– |
– |
| 9 |
20 Jun 2025 |
HK, CH |
BYD Co Ltd |
Overseas Expansion Tracking Well |
1211 HK, 002594 CH |
BUY |
HKD 180.00, CNY 500.00 |
| 10 |
20 Jun 2025 |
SG |
Sheng Siong Group |
Defensive Play |
SSG SP |
HOLD |
SGD 1.99 |
| 11 |
13 Jun 2025 |
SG |
SIA Engineering Co Ltd |
Leaps and bounds |
SIE SP |
BUY |
SGD 3.50 |
| 12 |
13 Jun 2025 |
SG |
Nanofilm Technologies International Ltd |
Awaiting a break in the clouds |
NANO SP |
HOLD |
SGD 0.595 |
| 13 |
13 Jun 2025 |
HK |
Bank of China (Hong Kong) |
Strong operating performance |
2388 HK |
HOLD |
HKD 38.00 |
| 14 |
11 Jun 2025 |
HK, CH |
Agricultural Bank Of China |
Ahead of peers growth |
1288 HK, 601288 CH |
HOLD, BUY |
HKD 5.90, CNY 6.65 |
| 15 |
10 Jun 2025 |
HK |
MTR Corp |
Entering a new CAPEX cycle |
66 HK |
BUY |
HKD 31.50 |
| 16 |
6 Jun 2025 |
HK, CH |
HK and China Strategy |
Silver lining in a bumpy market |
– |
– |
– |
| 17 |
4 Jun 2025 |
HK, CH |
China CITIC Bank |
Relatively high dividend yield |
988 HK, 601998 CH |
BUY |
HKD 7.80, CNY 8.95 |
| 18 |
4 Jun 2025 |
SG |
ST Engineering Ltd |
Buoyed by positive industry sentiment |
STE SP |
HOLD |
SGD 8.54 |
| 19 |
4 Jun 2025 |
CH |
China Strategy |
Quality yields to cushion market volatilities |
– |
– |
– |
| 20 |
29 May 2025 |
SG |
Seatrium Limited |
Staying focused on project delivery |
STM SP |
BUY |
SGD 2.76 |
Singapore’s Top STI Stocks: Market Capitalisation, Valuation, and Ratings Overview
| Code |
Company |
Price (SGD/USD) |
Market Cap (US\$m) |
Beta |
Div Yield (%) |
P/E Ratio (x) |
Recommendation |
| DBS SP |
DBS Group Holdings Ltd |
45.11 |
100,600 |
1.2 |
6.8 |
Hist: 11, F1: 12, F2: 11 |
10 Buy, 0 Hold, 19 Total |
| OCBC SP |
Oversea-Chinese Banking Corp Ltd |
16.40 |
57,945 |
1.0 |
5.9 |
Hist: 10, F1: 10, F2: 10 |
6 Buy, 1 Hold, 17 Total |
| ST SP |
Singapore Telecommunications Ltd |
3.86 |
50,089 |
0.9 |
4.7 |
Hist: 16, F1: 22, F2: 20 |
15 Buy, 1 Hold, 18 Total |
| UOB SP |
United Overseas Bank Ltd |
36.06 |
47,132 |
1.1 |
6.1 |
Hist: 10, F1: 10, F2: 10 |
11 Buy, 0 Hold, 18 Total |
| STE SP |
Singapore Technologies Engineering Ltd |
7.89 |
19,354 |
0.8 |
2.3 |
Hist: 35, F1: 29, F2: 26 |
10 Buy, 1 Hold, 15 Total |
| SIA SP |
Singapore Airlines Ltd |
7.02 |
16,638 |
1.0 |
4.1 |
Hist: 8, F1: 15, F2: 15 |
3 Buy, 5 Hold, 14 Total |
| JM SP |
Jardine Matheson Holdings Ltd |
49.15 (USD) |
14,502 |
0.8 |
4.7 |
F1: 9, F2: 8 |
4 Buy, 0 Hold, 7 Total |
| WIL SP |
Wilmar International Ltd |
2.88 |
14,129 |
0.7 |
5.8 |
Hist: 12, F1: 10, F2: 9 |
5 Buy, 0 Hold, 14 Total |
| HKL SP |
Hongkong Land Holdings Ltd |
6.12 (USD) |
13,383 |
0.8 |
3.9 |
F1: 21, F2: 19 |
9 Buy, 1 Hold, 13 Total |
| SGX SP |
Singapore Exchange Ltd |
15.08 |
12,666 |
0.8 |
2.5 |
Hist: 25, F1: 26, F2: 25 |
6 Buy, 3 Hold, 16 Total |
| CICT SP |
CapitaLand Integrated Commercial Trust |
2.18 |
12,535 |
0.7 |
5.0 |
Hist: 16, F1: 19, F2: 18 |
14 Buy, 0 Hold, 17 Total |
| KEP SP |
Keppel Ltd |
7.44 |
10,611 |
1.0 |
4.7 |
Hist: 16, F1: 14, F2: 14 |
11 Buy, 1 Hold, 13 Total |
| CLI SP |
CapitaLand Investment Ltd/Singapore |
2.65 |
10,387 |
1.0 |
4.6 |
Hist: 28, F1: 19, F2: 17 |
15 Buy, 0 Hold, 15 Total |
| SCI SP |
Sembcorp Industries Ltd |
6.93 |
9,689 |
0.8 |
3.8 |
Hist: 12, F1: 11, F2: 10 |
14 Buy, 0 Hold, 14 Total |
| CLAR SP |
CapitaLand Ascendas REIT |
2.67 |
9,665 |
0.8 |
5.7 |
Hist: 16, F1: 18, F2: 17 |
16 Buy, 0 Hold, 16 Total |
| THBEV SP |
Thai Beverage PCL |
0.46 |
9,084 |
0.7 |
5.4 |
Hist: 11, F1: 10, F2: 10 |
12 Buy, 0 Hold, 15 Total |
| YZJSGD SP |
Yangzijiang Shipbuilding Holdings Ltd |
2.25 |
6,959 |
0.9 |
4.4 |
Hist: 8, F1: 7, F2: 6 |
9 Buy, 1 Hold, 10 Total |
| GENS SP |
Genting Singapore Ltd |
0.72 |
6,789 |
0.6 |
5.6 |
Hist: 15, F1: 15, F2: 13 |
10 Buy, 0 Hold, 18 Total |
| STM SP |
Seatrium Ltd |
2.03 |
5,401 |
1.3 |
1.1 |
Hist: 44, F1: 18, F2: 13 |
9 Buy, 0 Hold, 9 Total |
| MPACT SP |
Mapletree Pan Asia Commercial Trust |
1.26 |
5,219 |
1.0 |
6.3 |
Hist: 11, F1: 16, F2: 15 |
9 Buy, 0 Hold, 15 Total |
| MLT SP |
Mapletree Logistics Trust |
1.17 |
4,666 |
1.1 |
6.4 |
Hist: 32, F1: 19, F2: 19 |
8 Buy, 1 Hold, 15 Total |
| MINT SP |
Mapletree Industrial Trust |
2.02 |
4,527 |
0.7 |
6.5 |
Hist: 17, F1: 15, F2: 15 |
9 Buy, 1 Hold, 15 Total |
| UOL SP |
UOL Group Ltd |
6.26 |
4,156 |
0.9 |
2.9 |
Hist: 15, F1: 14, F2: 13 |
6 Buy, 1 Hold, 8 Total |
| KDCREIT SP |
Keppel DC REIT |
2.32 |
4,114 |
0.9 |
4.4 |
Hist: 14, F1: 23, F2: 21 |
12 Buy, 0 Hold, 15 Total |
| DFI SP |
DFI Retail Group Holdings Ltd |
2.82 (USD) |
3,817 |
0.9 |
4.5 |
F1: 15, F2: 14 |
7 Buy, 0 Hold, 8 Total |
| CIT SP |
City Developments Ltd |
5.24 |
3,679 |
0.9 |
2.4 |
Hist: 25, F1: 17, F2: 13 |
6 Buy, 3 Hold, 14 Total |
| FCT SP |
Frasers Centrepoint Trust |
2.25 |
3,586 |
0.5 |
5.4 |
Hist: 20, F1: 20, F2: 20 |
12 Buy, 0 Hold, 16 Total |
| SATS SP |
SATS Ltd |
3.07 |
3,585 |
1.1 |
2.0 |
Hist: 20, F1: 18, F2: 15 |
10 Buy, 0 Hold, 10 Total |
| VMS SP |
Venture Corp Ltd |
11.59 |
2,620 |
0.9 |
6.3 |
Hist: 14, F1: 14, F2: 14 |
3 Buy, 2 Hold, 11 Total |
| FLT SP |
Frasers Logistics & Commercial Trust |
0.85 |
2,518 |
0.9 |
7.1 |
Hist: 24, F1: 17, F2: 16 |
8 Buy, 0 Hold, 12 Total |
Conclusion: Navigating Opportunities and Risks in a Dynamic Market
Investors face a market shaped by monetary policy uncertainty, sector rotations, and shifting global trade dynamics. While stimulus measures and robust sectoral performance offer reasons for optimism, trade and policy risks persist. The comprehensive stock analysis and data provided equip market participants with the insights necessary to make informed decisions amidst ongoing volatility.
Published by OCBC Investment Research Private Limited
