WS #7172
The dominant narrative remains the US-China summit with Trump arriving in Beijing accompanied by Nvidia CEO Jensen Huang, Apple CEO Tim Cook, and Tesla CEO Elon Musk. This event is driving a surge in Chinese tech stocks, with the ChiNext index breaking 4,000 for the first time since 2015. The summit is the primary market focus, with expectations of trade and tech discussions. Separately, geopolitical tensions persist: Israel ordered evacuations in southern Lebanon, and drone attacks continue in Ukraine and Russia, including a fire at an oil terminal near the Kerch Strait. A Chinese tanker is attempting to cross the Strait of Hormuz, a delicate moment amid US-Iran tensions. On the macro front, French unemployment rose to a five-year high, and German wholesale prices came in above expectations. The BOJ denied a meeting between US Treasury Secretary Bessent and BOJ Gov. Ueda, a minor counter-signal to earlier speculation. The UK political situation remains fluid with Starmer facing a leadership crisis, but the pound is steady. Overall, the summit is the key catalyst, with tech and energy sectors most affected.
Key developments
- Trump arrives in Beijing with Nvidia, Apple, Tesla CEOs; Chinese ChiNext index surges to 11-year high
- Israel orders evacuation of six towns in southern Lebanon ahead of potential escalation
- Chinese tanker attempts Strait of Hormuz crossing amid delicate US-Iran-China relations
- French unemployment unexpectedly rises to five-year high, eurozone weakness deepens
- BOJ denies meeting between US Treasury Secretary Bessent and BOJ Gov. Ueda