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Free Malaysia Today
6 days ago
- Automotive
- Free Malaysia Today
China shares set for best week in 7 months on financials boost, Mideast truce
Onshore financial shares in China climbed nearly 4% this week. (EPA Images pic) SHANGHAI : China stocks were little changed today but were set to notch their biggest weekly gain in more than seven months, led by financial shares, as a ceasefire between Israel and Iran lifted investor sentiment. China's blue-chip CSI 300 Index was flat by the lunch break, while the Shanghai Composite Index lost 0.2%. Hong Kong benchmark Hang Seng was down 0.1%. 'Chinese brokerage stocks rallied sharply this week, buoyed by easing global geopolitical tensions and improved investor risk appetite,' Morgan Stanley analysts said in a note. 'Over a 6- to 12-month horizon, increased portfolio allocation to China appears likely, supported by improving market fundamentals and growing global investor demand for diversification,' they said. Tianfeng Securities jumped 10% today. The CSI 300 Index has risen 2.6% this week, on track for its strongest weekly gain since November 2024, while the Hang Seng Index advanced 3.3%, heading for its best week since March. Onshore financial shares climbed nearly 4% this week. China's industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed in the face of broader economic stress. The US has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official said yesterday, amid efforts to end a trade war between the world's biggest economies. Shares of Xiaomi surged to a record high today, after the company launched a new electric car model with a strong beat on pre-orders. However, this has added pressure on other auto makers, with Li Auto and Xpeng down 1.4% and 2.7%, respectively. Hong Kong's Materials Index and mainland's Non-Ferrous Metals Index rose 2.5% and 2.4%, respectively, as non-ferrous metal prices such as copper broadly rallied.
Khaleej Times
25-06-2025
- Business
- Khaleej Times
UAE to remain among strongest performers in the GCC : World Bank
The World Bank has warned that escalating tensions between Iran and Israel pose a serious threat to economic stability across the GCC region, potentially derailing growth prospects and intensifying global uncertainty. While the immediate economic impact of the conflict remains difficult to quantify, the bank cautions that the fallout could ripple far beyond energy markets, affecting trade, inflation, investor sentiment, and fiscal stability. Safaa El Tayeb El-Kogali, the World Bank's regional director for the GCC, highlighted the risks during the release of the Bank's latest Gulf Economic Update. She noted that the region remains particularly vulnerable to geopolitical shocks, given its centrality to global oil markets and shipping routes. 'Any conflict, especially in this region, can have long-lasting and adverse effects,' she said, pointing to rising shipping costs, increased inflationary pressures, and mounting investor caution as potential consequences. 'The conflict between Iran and Israel is injecting a new layer of uncertainty into the global economy,' said El-Kogali. 'In such volatile conditions, investors tend to adopt a wait-and-see approach, delaying decisions until clarity and stability return.' Even as the region braces for potential external shocks, the World Bank acknowledged the GCC's economic resilience, largely credited to sustained diversification efforts. In 2024, the region's overall GDP grew by 1.8 per cent, a notable improvement from 0.3 per cent in 2023. This recovery was driven by a robust 3.7 per cent expansion in non-oil sectors, which helped offset a 3 per cent contraction in oil output due to Opec+ production cuts. Looking ahead, the Bank projects regional growth will rebound to 3.2 per cent in 2025 and accelerate to 4.5 per cent by 2026, supported by the gradual easing of oil production curbs and continued momentum in non-oil industries. The UAE is forecast to be among the strongest performers, with growth reaching 4.6 per cent in 2025 and stabilising at 4.9 per cent through 2027. This is expected to be fuelled by targeted public investments, improvements in governance, and expanding international partnerships, along with the normalisation of oil production levels. However, the outlook remains highly contingent on geopolitical developments and the broader global economic environment. 'Global trade uncertainty, weaker demand from key trading partners, and sustained volatility in oil markets could undermine growth projections,' El-Kogali warned. She urged policymakers to accelerate structural reforms, deepen intra-regional trade, and reduce dependency on hydrocarbons to build greater economic resilience. The World Bank's report, Smart Spending, Stronger Outcomes: Fiscal Policy for a Thriving GCC, stresses the need for smarter fiscal management amid persistent oil price fluctuations and growing expenditure pressures. Some Gulf economies are projected to face widening fiscal deficits in 2025, highlighting the urgency of reforming government finances. The report finds that fiscal policy has played a stabilising role during economic downturns, with a one-unit increase in public spending boosting non-oil GDP by up to 0.45 units. Nonetheless, the impact of public investment on long-term productivity and potential output remains limited. The Bank estimates that a one-time increase of one percentage point in government investment yields only a 0.07 per cent rise in non-oil potential output, indicating a need to reassess how fiscal resources are allocated. To address short- and long-term risks, El-Kogali recommended a multi-pronged approach involving fiscal diversification, tax reform, and stronger regional trade integration. 'Sustaining growth will depend on our ability to reduce exposure to fossil fuels, create high-quality jobs for youth, and stimulate innovation and entrepreneurship,' she said. She also pointed to the need for inclusive growth policies that support domestic consumption, bolster exports, and attract stable investment. With the spectre of conflict looming large and global economic headwinds gathering, the World Bank's message to GCC economies is clear: the time to fast-track reform is now, before volatility undermines years of hard-won progress.
Yahoo
24-05-2025
- Business
- Yahoo
Global investors are in 'sell America' mode even with US market dominance intact, JPMorgan survey says
Surveyed international investors are betting on European equities to beat out US stocks, JPMorgan said. The "sell America" trade has picked up steam amid policy, tariffs, and deficit fears. "Sell America" sentiment is growing among international investors, even as Wall Street forecasters see US markets bound to push past the worst-case scenarios. Investors from 45 countries surveyed at the JPMorgan Global Markets Conference this month revealed a bullish lean toward Europe, with 36% anticipating European equities to be the best-performing asset in 2025. That's compared to 17% who are betting on US stocks to dominate. "There were mixed views on the outlook for the US economy, even if recession is no longer the base case, and investor sentiment was not as positive on growth as risk market trading suggests," a team of JPMorgan analysts wrote last week. The report, involving 700 investors from 45 countries, adds to other signs indicating that global investors have turned cautious on US markets after years of outperformance. While US equities have drawn heavy foreign investor flows as the market rallied in the last few years, high valuations, AI disruptions, and massive policy and data jitters have shaken faith in "US exceptionalism." Meanwhile, new tailwinds are emerging for the European market, and investors have flocked to the region's stock market. The Stoxx Europe 600 is up 7% for the year, while the S&P 500 is down about 1%. However, though the stark difference in performance between the two markets may boost pro-European arguments, several Wall Street forecasters have cautioned against dumping US assets. Morgan Stanley recently projected that American dominance will remain intact through at least 2026, as near-term volatility gives way to improved earnings sentiment, continued AI gains, and accommodating policy boosts. In its view, slowing growth will not trigger a recession. Goldman Sachs, meanwhile, suggested that US mega-caps will outperform again this year — the so-called Magnificent Seven stocks have been the S&P 500's main growth engine since 2023, and are trading at discounted valuations that investors will lean into, the bank said. For now, uncertain will remain until the market gets more clarity on everything from interest rates, recession odds, trade deals, and geopolitical developments. JPMorgan offered some takeaways from the conference on key issues: Recession: Odds of a US downturn now stand at 40%, but GDP damage is already done. Conference speakers cited that US tariffs will dent business investment and consumption. JPMorgan expects the 10-year Treasury yield to end 2025 at 4.35%. Trade negotiations mean more uncertainty: Easing tensions with China may have uplifted US investors' spirits, but a deal with the European Union looks contentious, JPMorgan said. Risk of retaliation is high if negotiations don't conclude favorably. That risk was amplified on Friday when Trump posted on Truth Social that he was recommending a 50% tariff on the EU starting June 1. Expect a longer bond sell-off: Foreign dumping of US debt should continue as inflation, attacks against central bank independence, and policy turmoil erode the Treasury market's safe haven appeal. As sovereign wealth funds and reserve managers rethink Treasury holdings, gold stands to benefit, JPMorgan said. "A potential shift of just 0.5% of foreign US assets to gold could yield 18% annual returns, taking gold prices toward $6,000 by early 2029." Read the original article on Business Insider
Yahoo
24-05-2025
- Business
- Yahoo
Global investors are in 'sell America' mode even with US market dominance intact, JPMorgan survey says
Surveyed international investors are betting on European equities to beat out US stocks, JPMorgan said. The "sell America" trade has picked up steam amid policy, tariffs, and deficit fears. "Sell America" sentiment is growing among international investors, even as Wall Street forecasters see US markets bound to push past the worst-case scenarios. Investors from 45 countries surveyed at the JPMorgan Global Markets Conference this month revealed a bullish lean toward Europe, with 36% anticipating European equities to be the best-performing asset in 2025. That's compared to 17% who are betting on US stocks to dominate. "There were mixed views on the outlook for the US economy, even if recession is no longer the base case, and investor sentiment was not as positive on growth as risk market trading suggests," a team of JPMorgan analysts wrote last week. The report, involving 700 investors from 45 countries, adds to other signs indicating that global investors have turned cautious on US markets after years of outperformance. While US equities have drawn heavy foreign investor flows as the market rallied in the last few years, high valuations, AI disruptions, and massive policy and data jitters have shaken faith in "US exceptionalism." Meanwhile, new tailwinds are emerging for the European market, and investors have flocked to the region's stock market. The Stoxx Europe 600 is up 7% for the year, while the S&P 500 is down about 1%. However, though the stark difference in performance between the two markets may boost pro-European arguments, several Wall Street forecasters have cautioned against dumping US assets. Morgan Stanley recently projected that American dominance will remain intact through at least 2026, as near-term volatility gives way to improved earnings sentiment, continued AI gains, and accommodating policy boosts. In its view, slowing growth will not trigger a recession. Goldman Sachs, meanwhile, suggested that US mega-caps will outperform again this year — the so-called Magnificent Seven stocks have been the S&P 500's main growth engine since 2023, and are trading at discounted valuations that investors will lean into, the bank said. For now, uncertain will remain until the market gets more clarity on everything from interest rates, recession odds, trade deals, and geopolitical developments. JPMorgan offered some takeaways from the conference on key issues: Recession: Odds of a US downturn now stand at 40%, but GDP damage is already done. Conference speakers cited that US tariffs will dent business investment and consumption. JPMorgan expects the 10-year Treasury yield to end 2025 at 4.35%. Trade negotiations mean more uncertainty: Easing tensions with China may have uplifted US investors' spirits, but a deal with the European Union looks contentious, JPMorgan said. Risk of retaliation is high if negotiations don't conclude favorably. That risk was amplified on Friday when Trump posted on Truth Social that he was recommending a 50% tariff on the EU starting June 1. Expect a longer bond sell-off: Foreign dumping of US debt should continue as inflation, attacks against central bank independence, and policy turmoil erode the Treasury market's safe haven appeal. As sovereign wealth funds and reserve managers rethink Treasury holdings, gold stands to benefit, JPMorgan said. "A potential shift of just 0.5% of foreign US assets to gold could yield 18% annual returns, taking gold prices toward $6,000 by early 2029." Read the original article on Business Insider Sign in to access your portfolio
