Broker: OCBC Investment Research
Date of Report: 16 July 2025

Global Markets Pulse: U.S. Tech Surge, European Uncertainty, and Singapore’s Leading Stocks in Focus

U.S. Markets: Tech Strength Defies Broader Weakness

The U.S. market showed a mixed performance as the S&P 500 Index slipped 0.4%, primarily weighed down by financial stocks. In sharp contrast, the Nasdaq 100 Index managed a 0.1% gain, closing at a new record high on robust technology sector performance.

• Inflation Data: Core CPI rose 0.2% in June, undercutting the 0.3% forecast, signaling progress toward further potential rate cuts by the Federal Reserve in 2025.
• S&P 500 Performance: Despite being less than 0.6% away from its all-time high, 10 out of 11 sectors ended lower, dragged by declines in financials, materials, and healthcare, while technology shares bucked the trend.
• Financial Sector Moves:
  • Wells Fargo: Shares fell 5.5% after a disappointing full-year net interest income forecast.
  • BlackRock: Dropped 5.9% as Q2 net inflows lagged analyst expectations.
  • Citi: Jumped 3.7% as volatility from tariffs drove its best second quarter in five years.
• Semiconductors:
  • Nvidia: Rose 4% on news of resuming H20 AI chip sales in China, backed by U.S. government approval.
  • Industry-wide Gains: AMD and Broadcom also advanced. The Philadelphia Semiconductor Index climbed 1.3%, reflecting sector-wide optimism.

European Markets: Defensive Sectors Falter as Geopolitical Risks Loom

The Stoxx Europe 600 Index declined 0.4%, as rising U.S. inflation data led to higher bond yields and a rotation out of high-flying sectors such as banking and defense. European defense stocks came under pressure after the U.S. President threatened severe economic sanctions on Russia if hostilities with Ukraine persist, while pledging more weapons for Kyiv.

Asia-Pacific: Tech Optimism Lifts Indices Amid Mixed China Data

The MSCI Asia Pacific Index advanced up to 0.7%, buoyed by renewed optimism following Nvidia’s announcement of resumed chip sales to China. Regional tech heavyweights Alibaba, Tencent, and TSMC were notable contributors.

• China: Mainland shares were volatile as Q2 GDP growth slowed. Details showed softer retail sales and investment, highlighting persistent challenges for both consumers and businesses.

Singapore Market Wrap: STI and Sector Performance

Singapore’s Straits Times Index (STI) closed at 4,119.8, up 0.3%. Trading volumes surged by over 20%, though turnover eased slightly. The market saw 373 gainers versus 162 losers. Financial and real estate indices were mixed, while REITs edged up.

World Index Performance Snapshot

FX and Commodity Markets

• USDSGD: 1.2853 (-0.2%)
• USDJPY: 148.88 (-0.8%)
• USDCNY: 7.183 (-0.1%)
• USDHKD: 7.850 (0.0%)
• WTI Crude Oil: USD 66.52/bbl (-0.7%)
• Brent Crude Oil: USD 68.71/bbl (-0.7%)
• Gold: USD 3,324.6/oz (-0.6%)
• Silver: USD 37.71/oz (-1.1%)

OCBC Investment Research: Latest Ratings and Reports

A snapshot of the most recent coverage and ratings by OCBC Investment Research, reflecting a range of sectors and markets:

Singapore’s Largest Listed Companies: In-Depth Snapshot

Explore the latest data on Singapore’s top stocks by market capitalization, including beta, dividend yields, P/E ratios, and analyst recommendations.

Conclusion: Navigating a Mixed Global Market

The latest market pulse reveals a world of contrasts—U.S. technology stocks continue to power ahead despite financial sector drag, European markets face uncertainty from geopolitical tensions, and Asia’s tech optimism is offset by concerns over China’s uneven recovery. Singapore’s equity landscape remains anchored by robust blue chips and resilient REITs, offering both defensive and growth opportunities for investors.

For a deeper dive, investors should consider the detailed company metrics and research-driven ratings as part of their strategic decision-making process in the months ahead.