Broker: OCBC Investment Research
Date of Report: 18 July 2025

Global Markets Surge to Record Highs Amid Robust Earnings and Economic Optimism

Wall Street Soars on Strong Retail and Tech Earnings

U.S. equity markets reached new all-time highs, buoyed by a robust rebound in retail sales for June and stellar corporate earnings. The S&P 500 closed up 0.54% at 6,297.4, while the Nasdaq Composite climbed 0.74% to 20,885.7, both setting fresh records. The Dow Jones Industrial Average also rose 0.52%, finishing at 44,484.5. Almost all sectors ended in positive territory, with technology leading the charge.

Key highlights include:

• Taiwan Semiconductor Manufacturing Co. (TSMC) delivered a strong profit report, attributing its success to surging demand for advanced AI chips. This sets an upbeat tone for upcoming Big Tech earnings over the next weeks.
• PepsiCo Inc surged over 7% after reaffirming its annual outlook, highlighting robust international growth.
• United Airlines advanced 3.1% on projections of stronger demand since early July, providing a bright spot for the airline industry despite challenges from government budget cuts and trade tensions.
• Netflix Inc reported second-quarter results surpassing investor expectations after the closing bell. Its shares have soared over 40% in 2025.

Gold prices dipped slightly but remained above US\$3,300 per ounce, while U.S. Treasury yields were relatively flat. The Federal Reserve maintains a cautious stance, with officials signaling that interest rate cuts will be on hold until the inflationary impact of higher import taxes becomes clearer. The CME FedWatch tool now places the odds of a September rate cut at approximately 54%, with July all but ruled out.

European and Asian Markets Ride the Wave

European equities enjoyed a strong session, with the Stoxx Europe 600 Index up 0.96% at 547.0, driven by positive earnings reports and a rebound among technology and industrial stocks.

In Asia, the MSCI Asia Pacific Index rose as much as 0.3%, with Chinese onshore stocks performing well after the U.S. softened its trade rhetoric, aiming for a summit with Beijing. Chinese EV shares also gained as authorities pledged to address “irrational competition” amid intense price wars.

Singapore Market Overview: Resilience and Growth

The Straits Times Index closed at 4,161.4, up 29.1 points or 0.7%. Market breadth was positive with 367 gainers against 193 losers. Trading activity was robust with volume surging 25.8% and turnover up 10.6%.

Major Global Market and Commodity Movements

Latest Company and Sector Research Highlights

OCBC Investment Research has released a series of in-depth reports covering key companies and sectors. Here are the latest insights:

• Sembcorp Industries: Raised its stake in Senoko Energy to 50% from 30%. Rating: Buy, Fair Value: SGD 8.45.
• Nanofilm Technologies International: Cautiously optimistic outlook for FY26. Rating: Hold, Fair Value: SGD 0.610.
• Singapore Property Sector: Covered the effects of tightening measures on Seller’s Stamp Duty (SSD).
• Chinese Telecoms: Positioned as a quality yield play.
• China Construction Bank: The preferred play. Rating: Hold (HKD 8.90), Buy (CNY 10.90).
• China Life Insurance: Raised fair value estimates. Rating: Hold (HKD 21.40, CNY 44.25).
• Boustead Singapore: Noted potential re-rating catalysts. Rating: Buy, Fair Value: SGD 1.63.
• China CITIC Bank: Hunting for yield. Rating: Hold (HKD 8.40, CNY 9.20).
• 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: Strong growth potential. 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. Rating: Hold (HKD 5.90), Buy (CNY 6.65).
• MTR Corp: Entering a new CAPEX cycle. Rating: Buy, Fair Value: HKD 31.50.
• China CITIC Bank: Relatively high dividend yield. Rating: Buy (HKD 7.80, CNY 8.95).

Singapore STI Constituents: In-Depth Company Analysis

Key Takeaways for Investors

• Global equity markets are hitting record highs, supported by strong corporate earnings and positive economic momentum.
• Singapore’s blue-chip index and major constituents display resilience, with several offering attractive yields and robust fundamentals.
• Sector research highlights emerging opportunities in energy, technology, financials, and real estate, with select companies standing out as preferred plays or offering defensive qualities.
• OCBC Investment Research provides a mix of buy, hold, and sell recommendations, reflecting a balanced outlook for the next 12 months.
• Investors are encouraged to monitor policy direction, especially U.S. interest rates and global trade dynamics, as these remain key market drivers.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Please consult a financial adviser before making investment decisions.