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Globe and Mail
5 days ago
- Business
- Globe and Mail
Stocks Pressured by Escalation of US-China Trade Tensions
The S&P 500 Index ($SPX) (SPY) today is down -0.30%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.48%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.11%. June E-mini S&P futures (ESM25) are down -0.45%, and June E-mini Nasdaq futures (NQM25) are down -0.28%. Stock indexes today are falling as escalating trade tensions between the US and China have sapped confidence in asset markets. China's Ministry of Commerce today accused the US of unilaterally introducing new discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China, and the revocation of Chinese student visas, and vowed to take measures to defend its interests. The latest flare-up threatens to worsen trade relations even after President Trump expressed hope he will speak with Chinese President Xi Jinping this week to accelerate a trade truce. Higher bond yields today are also weighing on stocks. The 10-year T-note yield today is up +3 bp to 4.43% as escalating trade tensions between the US and China have led to a broad selloff of dollar assets, including Treasuries. Also, today's 4% jump in the price of WTI crude to a 1-1/2 week high has boosted inflation expectations, a hawkish factor for Fed policy. Comments from Fed Governor Waller were supportive of stocks and bonds when he said, 'Assuming that the effective tariff rate settles close to my lower tariff scenario, that underlying inflation continues to make progress to our 2% goal, and that the labor market remains solid, I would be supporting good news rate cuts later this year.' The markets are discounting the chances at 0% for a -25 bp rate cut at the next FOMC meeting on June 17-18. The markets this week will focus on any new trade or tariff news. Later today, the May ISM manufacturing index is expected to climb +0.8 to 49.5. Also, Fed Chair Powell delivers opening remarks today at the Board of Governors IF 75 th Anniversary Conference. On Tuesday, Apr factory orders are expected to fall -3.2% m/m and the Apr JOLTS job openings report is expected to fall -92,000 to 7.100 million. On Wednesday, the May ADP employment change is expected to climb by +110,000, and the May ISM services index is expected to rise +0.5 to 52.1. On Thursday, weekly initial unemployment claims are expected to fall by -5,000 to 235,000. On Friday, May nonfarm payrolls are expected to climb +125,000, and the May unemployment rate is expected to remain unchanged at 4.2%. Finally, May average hourly earnings are expected to rise +0.3% m/m and +3.7% y/y. Overseas stock markets today are lower. The Euro Stoxx 50 fell to a 1-week low and is down -0.58%. China's Shanghai Composite was closed today for the Dragon Boat Day holiday. Japan's Nikkei Stock 225 closed down -1.30%. Interest Rates June 10-year T-notes (ZNM2 5) today are down -5 ticks. The 10-year T-note yield is up +3.2 bp to 4.432%. June T-notes today are under pressure as escalating trade tensions between the US and China have led to a broad selloff of dollar assets, including Treasuries. Also, a negative carryover from weakness in European government bonds is weighing on T-notes. In addition, today's 4% jump in the price of WTI crude to a 1-1/2 week high has boosted inflation expectations, a bearish factor for T-notes. Losses in T-notes are limited due to dovish comments from Fed Governor Waller, who laid out a scenario for the Fed to cut interest rates later this year. European government bond yields today are moving higher. The 10-year German bund yield is up +3.1 bp at 2.531%. The 10-year UK gilt yield is up +1.6 bp to 4.662%. The German May S&P manufacturing PMI was revised downward by -0.5 to 48.3 from the previously reported 48.8. The UK May S&P manufacturing PMI was revised upward by 1.3 to 46.4 from the previously reported 45.1. Swaps are discounting the chances at 98% for a -25 bp rate cut by the ECB at Thursday's policy meeting. US Stock Movers CDW Corp (CDW) is down more than -4% to lead losers in the S&P 500 and Nasdaq 100 after the Wall Street Journal reported that Trump administration funding cuts have spread to technology contractors. Science Applications International (SAIC) is down more than -6% after reporting Q1 EPS of $1.92, weaker than the consensus of $2.13. Centene (CNC) is down more than -3% after Barclays downgraded the stock to equal weight from overweight, citing concern about Medicare Part D and individual Affordable Care Act businesses. Global e-Online Ltd (GLBE) is down more than -3 after Truist Securities initiated coverage of the stock with a sell recommendation and a price target of $31. JB Hunt Transport Services (JBHT) is down more than -2% after Goldman Sach downgraded the stock to neutral from buy. US steel and aluminum producers are climbing today after President Trump said he would be increasing tariffs on US steel and aluminum imports to 50% from 25%. Cleveland-Cliffs (CLF) and Century Aluminum (CENX) are up more than +20%. Also, Nucor (NUE) is up more than +13% to lead gainers in the S&P 500. In addition, Steel Dynamics (STLD) is up more than +13%, and Commercial Metals (CMC) is up more than +8%. Energy producers and energy service providers are moving higher today, with the price of WTI crude up more than +4% at a 1-1/2 week high. APA Corp (APA) and Devon Energy (DVN) are up more than +2%. Also, Diamondback Energy (FANG), ConocoPhillips (COP), Exxon Mobil (XOM), and Occidental Petroleum (OXY) are up more than +1%. Chip stocks are moving higher today to lend support to the overall market. Advanced Micro Devices (AMD), Nvidia (NVDA), Broadcom (AVGO), and Microchip Technology (MCHP) are up more than +1%. Moderna (MRNA) is up more than +1% after the FDA approved the company's new Covid vaccine for adults over 65 and anyone over 12 with at least one risk factor for severe disease. Vera Therapeutics (VERA) is up more than +58% after reporting the primary endpoint was met in a Phase 3 trial of its atacicept for the treatment of immunoglobulin A nephropathy. Boeing (BA) is up nearly +1% after Bank of America Global Research upgraded the stock to buy from neutral with a price target of $260. Credo Technology Group Holding (CRDO), Science Applications International Corp (SAIC), The Campbell's Company (CPB).
Free Malaysia Today
26-05-2025
- Business
- Free Malaysia Today
Bursa opens higher but retreats on profit-taking
KUALA LUMPUR : Bursa Malaysia opened marginally higher but retreated thereafter, weighed down by mild profit-taking in selected heavyweights as Wall Street slipped following the latest US tariff threats against the European Union (EU), analysts said. At 9.15am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.93 points or 0.12% to 1,533.45 from Friday's close of 1,535.38. The benchmark index opened 0.95 of-a-point higher at 1,536.33. Market breadth was negative with 227 decliners and 122 gainers, while 329 counters were unchanged, 1,752 untraded and 42 suspended. Turnover stood at 237.79 million shares valued at RM97.58 million. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said sentiment was once again unsettled by the ongoing 'de-escalation' and 're-escalation' of trade tensions, following the tariff threats against the EU, including a proposed 50% tariff on all imports from the EU, and 25% on i-Phones not made in the US. 'On the local market, we suspect that foreign funds may return as buyers after several days of selling. 'For today, we expect the index to trend cautiously within the 1,525-1,540 range,' he added. Meanwhile, Malacca Securities Sdn Bhd expects the local bourse to start the week positively following US President Donald Trump's extension of the EU tariff deadline, despite the weaker performance on Wall Street. 'Market attention will also be on the Asean Summit over the next two days,' it said in a note today. Among heavyweights, Maybank added one sen to RM9.89, CIMB climbed two sen to RM6.96. IHH Healthcare eased two sen to RM6.88, while Public Bank and Tenaga Nasional were flat at RM4.40 and RM14 respectively. For active stocks, Harvest Miracle and OCR Group were flat at 18 sen and 3.5 sen respectively, Eco-Shop slid one sen to RM1.19, Oppstar dropped seven sen to 44 sen, and Sarawak Cable eased half-a-sen to 1.5 sen. On the index board, the FBM Emas Index lost 20.13 points to 11,453.92, the FBMT 100 Index shaved 18.97 points to 11,214.13, and the FBM ACE Index went down 18.64 points to 4,597.30. The FBM Emas Shariah Index decreased 27.89 points to 11,398.32, and the FBM 70 Index gave up 46.85 points to 16,303.41. Across sectors, the Financial Services Index was 7.75 points better at 18,110.33, the Industrial Products and Services Index inched down 0.47 of-a-point to 153.57, the Energy Index was flat at 710.77, and the Plantation Index fell 15.53 points to 7,314.78.
Yahoo
13-05-2025
- Business
- Yahoo
Is There Now An Opportunity In BE Semiconductor Industries N.V. (AMS:BESI)?
Let's talk about the popular BE Semiconductor Industries N.V. (AMS:BESI). The company's shares received a lot of attention from a substantial price increase on the ENXTAM over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let's take a look at BE Semiconductor Industries's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Good news, investors! BE Semiconductor Industries is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is €159.21, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What's more interesting is that, BE Semiconductor Industries's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for BE Semiconductor Industries Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for BE Semiconductor Industries. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? Since BESI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on BESI for a while, now might be the time to make a leap. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy BESI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy. If you'd like to know more about BE Semiconductor Industries as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for BE Semiconductor Industries you should be aware of. If you are no longer interested in BE Semiconductor Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
