- Asian Stocks Dip After CPI Data While Tech Gains: Markets Wrap
Asian shares dropped as traders trimmed interest-rate cut bets by the Federal Reserve after US inflation data
showed companies are beginning to pass some tariff-related costs to consumers. The MSCI regional gauge
dropped 0.1% while a gauge of technology shares in Hong Kong rose 0.6% on optimism about the resumption
of some specific chip shipments to China. Taiwan Semiconductor Manufacturing Co. rose as much as 1.8% in
Taipei after a report said the company plans to build a second chip plant in Japan. Contracts for the S&P 500
and the Nasdaq 100 dipped 0.1%. - Dow drops 400 points on earnings, inflation woes; Nvidia lifts Nasdaq to record close
The Dow Jones Industrial Average fell Tuesday as worries over U.S. inflation and a mixed bag of big bank
earnings dragged the blue-chip index lower. The Nasdaq Composite, meanwhile, got a boost from gains in
Nvidia. The 30-stock Dow lost 436.36 points, or 0.98%, and closed at 44,023.29. The S&P 500 lost 0.40% and
closed at 6,243.76, easing from a fresh record high reached earlier in the session. The Nasdaq was an
outperformer, adding 0.18% and posting a record close of 20,677.80. The tech-heavy index was aided by a 4%
rise in Nvidia shares after the chip company said it hopes to “soon” resume deliveries of its H20 GPU sales to
China. - Oil prices gain on demand expectations amid improving economy
Oil prices rose on Wednesday on expectations of steady demand in the U.S. and China, the world’s two
largest oil users, amid an improving economic outlook. Brent crude futures rose 29 cents, or 0.42%, to $69 a
barrel by 0105 GMT. U.S. West Texas Intermediate crude futures were up 40 cents, or 0.6%, at $66.92. That
reversed two days of declines as the market downplayed the potential for supply disruptions after U.S.
President Donald Trump threatened tariffs on purchases of Russian oil. Prices have seesawed in a fairly tight
range as signs of steady demand from an increase in travel during the Northern Hemisphere summer has
competed with concerns U.S. tariffs on its trading partners will slow economic growth and fuel consumption.
However, major oil producers are pointing to improvement in economic growth for the second half of the year
and Chinese data showed growth there remained consistent. “Strong seasonal demand is currently providing
upward momentum to oil prices, as summer travel and industrial activity peak,” LSEG analysts said in a note.
“Increased gasoline consumption – especially in the U.S. during the Fourth of July holiday period – has signaled
robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.” China
data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of
frontloading to beat U.S. tariffs. That eased some concerns about the economy of the world’s largest crude
importer. The data also showed that China’s crude oil throughput in June jumped 8.5% from a year earlier,
indicating stronger fuel demand. That was the highest since September 2023, as state-owned refineries
increased operations and saw a recovery in profit, consultants said. Additionally, the Organization of Petroleum
Exporting Countries (OPEC) forecast in a monthly report on Tuesday that the global economy would do better
in the second half of the year, boosting the oil demand outlook. - Gold ekes out gain as focus turns to US tariff negotiations
Gold prices rose on Wednesday as investors digested data showing an increase in U.S. consumer prices last
month and waited for further clarity on U.S. President Donald Trump’s trade policy. Spot gold was up 0.4% at
$3,334.12 per ounce, as of 0401 GMT. U.S. gold futures edged 0.1% higher to $3,340.90. “Gold at this moment
is consolidating with a slight downward bias, especially with a stronger dollar,” said Brian Lan, managing
director at GoldSilver Central, Singapore. “However, many countries are still negotiating with the U.S. on the
tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens.” Trump on
Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on
August 1. However, Trump said on Monday he was open to further negotiations. Elsewhere, spot silver gained
0.3% to $37.82 per ounce. - Inflation picks up again in June, rising at 2.7% annual rate
Consumer prices rose in June as President Donald Trump’s tariffs began to slowly work their way through the
U.S. economy. The consumer price index, a broad-based measure of goods and services costs, increased 0.3%
on the month, putting the 12-month inflation rate at 2.7%, the Bureau of Labor Statistics reported Tuesday.
The numbers were right in line with the Dow Jones consensus. Excluding volatile food and energy prices, core
inflation picked up 0.2% on the month, with the annual rate moving to 2.9%, also matching the respective
estimates. - Indonesia to Face 19% Tariff and Buy 50 Boeing Jets, Trump Says
President Donald Trump said he reached a deal with Indonesia that will tariff its goods at 19%, adding that the
Southeast Asian nation agreed to erase all duties on US imports and buy more than $19 billion of American
products including 50 Boeing Co. jets. “We are going to have full access to Indonesia,” Trump told reporters
Tuesday at the White House. “They are paying 19% and we are not paying anything.” Trump said later on social
media that Indonesia agreed to purchase $15 billion in US energy and $4.5 billion worth of agricultural
products, adding that “many” of the Boeing planes would be 777s. No timing or details of the purchases were
disclosed, and Jakarta hasn’t confirmed the tariff rate. Indonesia’s benchmark stock index rose 0.6% at the
open on Wednesday. A pact with Indonesia, which was earlier threatened with a 32% tariff, would be the first
struck with a country targeted by Trump’s tariff letters sent over the last week, aimed at increasing pressure
on negotiators ahead of an Aug. 1 deadline for higher duties to take effect. The breakthrough will provide some
relief for Indonesia, which counts the US as its second-largest export market for goods ranging from apparel to
palm oil — two sectors that are also responsible for millions of jobs in the country. The government had cut its
growth forecast this year to 5% from 5.2% to account for the trade war fallout. - Central banks are increasingly buying gold from local mines as prices surge
Central banks are increasingly looking to bolster their gold reserves. And they are turning to mines in their
backyard to source the yellow metal. Besides being cheaper, securing gold directly from mines helps support
local industry and bolsters reserves without weighing on foreign exchange reserves, experts said. While
countries such as the Philippines and Ecuador have been doing this for years, more central banks with access
to domestic gold mines have started, increased, or are considering direct local purchases, according to the
World Gold Council. Nineteen out of 36 respondents in the World Gold Council’s latest central bank survey said
they are buying gold directly from domestic artisanal and small-scale gold miners in local currency. Four are
thinking of following suit. This is a slightly higher figure than last year’s survey, when around 14 central banks
out of 57 said they were buying directly from domestic sources. “One trend that we’re seeing is that some
central banks, especially in Africa, Latin America, are starting to buy gold directly from domestic, small-scale
gold mines, which have really proliferated because of the higher price,” said Shaokai Fan, global head of central
Banks at WGC. Central banks of Colombia, Tanzania, Ghana, Zambia, Mongolia and the Philippines are relying
on domestically mined gold to build up reserves, according to the industry body. Ghana Gold Board — the state
agency managing gold purchases on behalf of the Bank of Ghana — in April secured agreements with several
mining companies to buy 20% of their gold output, Reuters reported. Last September, Tanzania’s mining
authority reportedly mandated that all gold exporters, including miners and traders, put aside at least 20% of
their output to sell to the central bank. - UK inflation hits hotter-than-expected 3.6% in June
The U.K.’s annual inflation rate hit a hotter-than-expected 3.6% in June, according to data released by the
Office for National Statistics (ONS) on Wednesday. Economists polled by Reuters had anticipated inflation
would reach 3.4% in the twelve months to June, after it hit 3.4% in May. June core inflation, which excludes
more volatile energy, food, alcohol and tobacco prices, rose by an annual 3.7%, up from 3.5% in the twelve
months to May. - Chip giant ASML says it can’t confirm that it will grow in 2026
ASML reported second-quarter earnings that beat estimates with the its key net bookings figure ahead of
consensus. However, the chip equipment giant missed analyst expectations for revenue guidance in the current
quarter and warned of the possibility of no growth ahead. Here’s how ASML did versus LSEG consensus
estimates for the second quarter: Net sales: 7.7 billion euros ($8.95 billion) versus 7.52 billion euros expected;
Net profit: 2.29 billion euros vs 2.04 billion euros expected. In its own previous forecast issued in April, ASML
had said it expected second-quarter net sales of between 7.2 billion euros and 7.7 billion euros. In a pre
recorded interview posted on ASML’s website, the company’s Chief Financial Officer Roger Dassen said the
beat was due to revenue from upgrading currently deployed machines as well as tariffs having a “less negative”
impact than anticipated. Analysts anticipated net bookings — a key indicator of order demand — would come
in at 4.19 billion euros over the April-June stretch. ASML reported net bookings of 5.5 billion euros. ASML is
one of the most important semiconductor supply chain companies in the world. It makes extreme ultraviolet
lithography (EUV) machines, which are required to manufacture the most advanced chips in the world, such as
those designed by Apple and Nvidia. Companies like Intel and Taiwan Semiconductor Manufacturing Co. are
customers of ASML. - First Solar’s outlook improves amid tariff and IRA uncertainty
First Solar Inc (NASDAQ:FSLR) on Tuesday received a price target increase from Jefferies to $194 from $192,
representing a 21% upside from the current price of $160.84. Analysts described First Solar as “one of the most
macro-entangled” companies in the renewables sector, with its 2025 guidance and Southeast Asian facilities
dependent on tariff decisions. Despite these uncertainties, Jefferies maintained a Buy rating on the stock. The
firm expects clarity on the Inflation Reduction Act (IRA) to drive increased volumes in 2026 and believes First
Solar’s Southeast Asian facilities will remain operational in the near term. Treasury guidance remains a wild
card for the solar industry broadly, potentially slowing near-term project development activity. For the
upcoming second quarter, Jefferies estimates revenue of $988 million, 5% below consensus, with gross margins
of 41% compared to the 40% consensus. The firm noted that investor focus will be on First Solar’s customer
conversations and outlook for activity in the second half of 2025 and first half of 2026. Jefferies raised its 2025
revenue and EBITDA estimates to $5.2 billion and $2.3 billion, respectively, which are 3% and 8% above
consensus. The firm projects volume growth in 2026 and 2027 to reach 22.2GW and 22.4GW, exceeding
consensus by 8% and 2%. Recent tariff decisions include the U.S. imposing 25% tariffs on Malaysia and 20% on
Vietnam, though some ambiguity remains regarding Vietnam. - MP Materials stock rips 20% higher after $500 million Apple deal for rare earth magnets
Apple and miner MP Materials announced a $500 million deal Tuesday for rare earth magnets and the
development of a recycling facility that will reinforce the iPhone maker’s U.S. supply chain. MP Materials stock
climbed 20%. Shares of Apple were marginally higher. As part of the agreement, Apple will buy rare earth
magnets created at the company’s facility in Fort Worth, Texas. Both companies will combine on a new rare
earth recycling line in Mountain Pass, California. MP Materials plans to start shipping magnets in 2027.
“American innovation drives everything we do at Apple, and we’re proud to deepen our investment in the U.S.
economy,” said Apple CEO Tim Cook in a press release. “Rare earth materials are essential for making advanced
technology, and this partnership will help strengthen the supply of these vital materials here in the United
States.”. Apple said the deal will create dozens of new manufacturing and research and development roles.
Rare earth magnets are key components that make up everything from consumer electronics such as
smartphones and computers to cars and renewable energy systems. For years, the U.S. has worked on curbing
its reliance on China, which dominates the global rare earth elements supply chain. MP Materials operates the
only rare earth mine in the U.S. Earlier this month, the Department of Defense became the largest shareholder
in the rare earth miner, buying $400 million in preferred stock to improve rare earth magnet supply on
American soil. Apple announced a plan to invest more than $500 billion to beef up U.S. manufacturing
capabilities earlier this year. The plan included a new factory for artificial intelligence servers in Texas. - Uber partners with China’s Baidu to deploy self-driving taxis in global markets
Uber and China’s Baidu (NASDAQ:BIDU) will partner to deploy thousands of Baidu’s Apollo Go autonomous
vehicles on the Uber (NYSE:UBER) platform across several international markets outside the U.S. and mainland
China, the companies said on Tuesday. The first rollouts are expected in Asia and the Middle East later this
year. The tie-up brings together Uber’s massive ride-hailing network with Baidu’s fleet of more than 1,000 fully
driverless vehicles across the world. It is the latest in a series of efforts by Uber to compete in the burgeoning
market as tech companies race to overcome regulatory and engineering hurdles to deploy self-driving taxis at
a commercial scale. Last month, Uber launched autonomous ride-hailing services in Atlanta, expanding its
partnership with Alphabet (NASDAQ:GOOGL)’s Waymo, while also signing deals with autonomous vehicle
companies including Pony AI and May Mobility. Tesla (NASDAQ:TSLA) rolled out its long-awaited robotaxis in
Austin, Texas last month, in their first public test. Meanwhile, China’s robotaxi firms have been increasingly
eyeing global expansion; Apollo Go is now present in 15 cities, including Dubai and Abu Dhabi, and, as of May,
had completed more than 11 million rides. In May, Pony AI became the third Chinese autonomous vehicle
company after Baidu and WeRide to unveil an agreement to deploy its vehicles in the Middle East. - Nvidia Corp. and Advanced Micro Devices Inc. plan to resume sales of some AI chips in China after
securing Washington’s assurances that such shipments would get approved, a dramatic reversal from the
Trump administration’s earlier stance on measures designed to limit Beijing’s AI ambitions
US government officials told Nvidia they would green-light export licenses for its H20 artificial intelligence
accelerator, the company said in a blog post on Monday — a move that may add billions to Nvidia’s revenue
this year, restoring its ability to fulfill orders it had written off as lost due to government restrictions. Nvidia
designed the less-advanced H20 chip to comply with earlier China trade curbs from Washington, which Trump’s
team tightened in April to block H20 sales to the Asian country without a US permit. AMD received similar
assurances from the US Commerce Department and plans to restart shipments of its MI308 chips to China once
licenses for sales are approved, the company said in a statement Tuesday. Washington in recent weeks has
lifted a spate of export controls — including on chip design software — imposed ahead of last month’s trade
talks in London. That’s in return for China allowing more sales of rare-earth minerals needed to make a range
of high-tech products, something US negotiators thought they’d achieved the month prior during talks in
Geneva. Meanwhile, Apple Inc. has struck a $500 million deal to buy rare-earth minerals from MP Materials
Corp., the US producer that just last week secured backing from the Pentagon. - Citigroup Inc.’s traders had their best second quarter in five years, with revenue buoyed by record trading
volumes in the quarter
Revenue from the bank’s fixed-income trading business soared 20% to $4.3 billion, beating the $3.9 billion
predicted by analysts. Citigroup CEO Jane Fraser said, “We’re improving the performance of each of our
businesses to take share and drive higher returns.” Shares rose 3.7%. - BlackRock’s latest results show expectations for the world’s largest asset manager are going up, despite
its shares falling 5.9% after the company reported earnings
That came after the asset manager reported earnings surpassing the average estimate, in a quarterly
performance that most analysts deemed somewhere between solid and strong. The world’s largest money
manager took in less client cash than expected, largely because a single large institutional client pulled $52
billion from a low-fee index strategy. Multi-asset and overall fixed-income strategies also had redemptions,
while total performance fees were down $70 million from a year earlier. Revenues rose 13% to $5.4 billion
from a year earlier, just missing analyst estimates. Still, BlackRock pulled in money — $68 billion overall —
including $22 billion to cash management accounts and $9.8 billion in alternatives and $85 billion in aggregate
to ETFs. Client assets under management overall hit a record $12.5 trillion. Kyle Sanders, an analyst at Edward
Jones, said BlackRock “is entering into a new chapter in its growth story” that will depend on private markets
and technology via Aladdin. Larry Fink attributed the share move to investors thinking the company expenses
are high, which he said was intentional as it integrates three major acquisitions to become a key player in
private markets. - Trade Desk shares rose 6.6% after S&P Dow Jones Indices said the advertising technology company will
join the S&P 500 Index before trading opens on July 18
Evercore ISI analyst Mark Mahaney says the inclusion is “additional confirmation of TTD’s very impressive
fundamentals” and additional confirmation of the “centrality” of the Internet Sector. - Trump says crypto regulation bills that failed to advance earlier now have the votes to move forward
President Donald Trump said Tuesday that a group of House Republicans who blocked
several cryptocurrency regulation bills from moving forward earlier in the day had changed their minds
following a White House meeting, and would now vote to advance the legislation. “I am in the Oval Office with
11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have
all agreed to vote tomorrow morning in favor of the Rule,” Trump wrote on Truth Social shortly before 9 p.m.
ET. Trump said that House Speaker Mike Johnson called into the meeting and “looks forward to taking the Vote
as early as possible.” It was a dramatic, quick rebound for the Trump-supported pieces of legislation, which just
hours before had faced an uncertain path forward, after the bills failed to clear a key procedural hurdle. The
bills cannot advance until the House approves rules of debate for the legislation. The final surprise tally of the
vote Tuesday was 196 in favor of approval, and 223 against. Thirteen Republicans voted with Democrats to
block the legislation from moving forward. The measures had been widely expected to pass. The failure of the
rule during what is being billed as “Crypto Week” was a rare instance of House Republicans refusing to take
direction from Trump, at least temporarily. The late Tuesday flip among the holdouts underscores Trump’s firm
grip over Republican conference. Crypto-linked stocks turned lower after the vote failed.
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