Financial Daily: Middle East tensions trigger fourth consecutive day of oil price hikes! US major indexes close lower; the Philadelphia Semiconductor Index records a historic 17-day winning streak, while Chinese stocks end lower.

- Key Focus

– Israel and Lebanon held negotiations at the White House in the United States. After the meeting, both parties agreed to extend the ceasefire agreement by three weeks.

– According to Reuters, the spokesperson for India's Ministry of External Affairs stated that India and the US are in communication over a balanced and mutually beneficial trade agreement.

– Intel's Q2 revenue exceeded market expectations, with its stock price surging nearly 20% during after-hours trading on the US market.

Content compiled by 'Harbor Family Office,' a subsidiary of Henry Jia Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[US Market] The three major US stock indexes closed lower, while the Philadelphia Semiconductor Index surpassed the 10,000-point mark.

The US military announced it had intercepted two oil tankers. Subsequently, reports from Iran indicated that its air defense system was attacked and activated, escalating tensions in the Middle East. Oil prices rose for the fourth consecutive trading day, influencing sentiment in the US stock market, causing volatility and leading to losses across the three major indices, with rising market panic.

At the close, the S&P 500 Index fell 0.41% to 7,108.40 points; the Nasdaq Composite Index dropped 0.89% to 24,438.50 points; and the Dow Jones Industrial Average declined 0.36% to 49,310.32 points. The VIX panic index rose 2.06% to 19.31 points. The Philadelphia Semiconductor Index gained 1.71% to 10,078.57 points, marking its 17th consecutive trading day of gains.

The index tracking the seven major US technology stocks fell 1.30%, with Microsoft closing down nearly 4%, Tesla falling 3.56%, Meta dropping more than 2%, and NVIDIA declining 1.41%. The Nasdaq Golden Dragon China Index fell 2.47% to 6,843.70 points. Among popular Chinese stocks, XPeng dropped 6.4%, New Oriental fell 5.8%, WeRide declined over 4%, and Alibaba fell 3.5%. On an individual stock basis, Circle retreated 4.07%, while Intel surged nearly 20% in after-hours trading.

[European Market] European major indexes ended mixed on Thursday.

On Thursday, European stock markets experienced slight fluctuations, with major indices showing mixed results. At the close, the pan-European STOXX 600 Index rose 0.05% to 614.20 points, while the pan-European STOXX 50 Index fell 0.19% to 5,894.73 points.

Germany's DAX 30 Index fell 0.16% to 24,155.45 points; France's CAC 40 Index rose 0.87% to 8,227.32 points; and the UK's FTSE 100 Index dropped 0.19% to 10,457.01 points.

[Asian Market] On Thursday, Asian stock markets showed mixed performance, with South Korea's index closing up 0.9%.

On Wednesday, Asian stock markets generally opened higher but trended downward, recovering losses in late trading sessions. South Korea's index closed up 0.9%. At the close, Japan's Nikkei 225 Index fell 0.75% to 59,140.23 points, the TOPIX Index dropped 0.76% to 3,716.38 points, and South Korea's KOSPI Index rose 0.90% to 6,475.81 points.

[Hong Kong Market] Hong Kong's three major indices closed lower, with the Hang Seng Tech Index dropping nearly 2%

Hong Kong stocks opened lower and closed lower on Thursday, with all three major indexes finishing in negative territory. The Hang Seng Tech Index fell nearly 2%, while the Hang Seng Index dropped almost 1%. At the close, the Hang Seng Index was down 0.95% at 25,915.20 points; the Hang Seng Tech Index fell 1.98% to 4,865.52 points; and the Hang Seng China Enterprises Index declined 0.79% to 8,732.63 points. In terms of sectors, power equipment stocks surged against the trend due to high AI-driven electricity demand, with Harbin Electric closing up 8.85% and Weichai Power gaining 6.76%. U.S. President Trump stated on Wednesday that there is no timeline for ending the conflict with Iran, weakening market confidence in a short-term resolution of Middle East tensions. Oil and gas stocks strengthened, with COSL closing up nearly 7%. Gold stocks broadly retreated as gold prices fell, with Chifeng Gold plunging 6.72% and Lingbao Gold and Zijin International dropping over 5%.

[A-share Market] A-shares opened higher but closed lower, with all three major indexes finishing in the red.

A-shares opened higher but then fluctuated downwards on Thursday, with all three major indexes closing in the red. At the close, the Shanghai Composite Index fell 0.32% to 4,093.25 points, the Shenzhen Component Index declined 0.88% to 15,043.45 points, and the ChiNext Index dropped 0.87% to 3,720.25 points. Regarding sectors, computing hardware stocks corrected, with Guangku Technology hitting the downside limit. Non-ferrous metals and precious metals broadly fell significantly, with Zhongyi Technology and Yingstel dropping over 10%, and Zhongxi Rare Metals among others hitting the downside limit. The liquor sector bucked the trend, with Yingjia Distillery surging to the upside limit due to strong Q1 earnings, and Laobaigan Liquor rising over 6%. Energy sectors like coal and oil and gas rose amid renewed volatility in the Middle East situation, with Haohua Energy reaching the upside limit, and Guanghui Energy and Shanxi Coal International climbing over 5%. The green power concept performed strongly, with several stocks including China Energy Conservation & Environmental Protection Wind Power and Huadian Energy hitting the upside limit.

– Bonds

[US Bonds] US Treasury yields moved higher.

U.S. Treasury yields rose on Thursday. In late New York trading, the yield on the 10-year Treasury note increased nearly 2 basis points to 4.320%, while the two-year Treasury yield climbed 2.52 basis points to 3.8231%.

[Non-U.S. Bond Markets] European government bond yields overall showed an upward trend.

European government bond yields continued to rise overall on Thursday. In late European trading, the yield on Germany's 10-year government bond rose 0.1 basis point to 3.009%, while the two-year German bond yield increased by 0.6 basis points. The yield on the UK's 10-year government bond climbed 2.9 basis points to 4.939%, and the yield on the UK’s two-year bond rose 3.4 basis points. France's 10-year government bond yield increased 0.6 basis points.

[China Bond Market] Government bond futures generally declined on Thursday.

Government bond futures mostly trended lower on Thursday. At the close, the 30-year main contract fell 0.22%, the 10-year main contract declined 0.07%, the 5-year main contract decreased 0.02%, while the 2-year main contract remained unchanged from the previous trading day level.

– Foreign exchange

[USD] The U.S. Dollar Index marked its third consecutive gain, with the ICE U.S. Dollar Index rising 0.24%.

The U.S. Dollar Index rose for a third consecutive trading day. In late New York trading, the ICE U.S. Dollar Index climbed 0.24% to 98.822 points, while the Bloomberg Dollar Index gained 0.20% to 1,199.60 points.

Non-US Dollar Currencies: The US dollar strengthened slightly, while the yen weakened

On Thursday, the US dollar strengthened against major global currencies. In New York trading, the US dollar rose 0.15% against the Japanese yen to 159.72 yen; the euro fell approximately 0.08% against the US dollar to 1.1694 dollars; and the British pound fell 0.16% against the US dollar to 1.3477 dollars.

Offshore Renminbi: The US dollar versus offshore renminbi exchange rate at 6.8356 yuan

In late New York trading, the US dollar versus offshore renminbi increased by 36 points compared to the previous trading day's close, reaching 6.8356 yuan. Onshore renminbi versus the US dollar declined by 117 points from the previous night session’s closing price, settling at 6.8336 yuan.

Cryptocurrency: Cryptocurrency market correction

On Thursday, the cryptocurrency market experienced a correction with Bitcoin falling about 0.7%, hovering around the $78,000 level, while Ethereum surged over 2.5%.

– Product

Energy: Crude oil prices extended gains for the fourth consecutive session, with US crude futures rising 3.11%

Amid escalating instability in the Middle East, oil prices continued to rise for the fourth straight trading day. In late New York trading, US crude futures climbed 3.11%, settling at $95.85 per barrel.

Precious Metals: Metal markets generally declined, with spot gold prices falling over 1%

Precious Metals:Gold prices dropped, with spot gold declining 1.04% to $4,690.57 per ounce in late New York trading, while US gold futures fell 0.98% to $4,706.50 per ounce.

Metals Futures Market:Precious metals and non-ferrous metals markets generally declined, with spot silver falling 2.9% to $75.4434 per ounce; US silver futures dropped 3.25% to $75.985 per ounce. US copper futures fell approximately 1.7% to $6.0865 per pound; spot platinum dropped 3.4%, and spot palladium fell 4.9%.

[Disclaimer]

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