Weekly Global Market Summary – Week Ending 19 July 2025

United States

Equity markets hit new highs

The S&P 500 rose around 0.6% and the Nasdaq jumped approximately 1.5%, continuing their upward momentum amid strong corporate earnings, particularly from the tech and retail sectors.

Earnings momentum

Major banks and tech companies reported robust Q2 results. JPMorgan, Wells Fargo, and Citi outperformed expectations, boosting investor confidence.

Tariffs and inflation concerns

Inflation remains sticky, with the Consumer Price Index running at an annual pace of 2.7–2.9%. Rising tariffs contributed to higher input costs, prompting bond yields to climb, with some parts of the curve moving above 5%. This has dampened expectations of near-term Fed rate cuts.

Lingering trade tensions

The Biden administration continues to weigh broader tariffs on imports from Mexico, the EU, and potentially China. While markets remain alert, volatility has stayed relatively low.

China

Market resilience despite trade friction

Chinese equity markets were resilient. The CSI 300 and Shanghai Composite rose by about 1%, while the Hang Seng Index gained nearly 3%, shrugging off U.S. tariff concerns.

Q2 economic data

China's Q2 GDP grew by 5.2% year-on-year, slightly below Q1 but still above market forecasts. The data suggests stable growth, reducing pressure for immediate large-scale stimulus.

Structural challenges persist

Despite stable GDP, deflationary pressures continue. The Producer Price Index remained in negative territory, and the real estate sector continues to weaken, marking five consecutive years of housing market decline.

Electric vehicle sector support

The Chinese government unveiled support measures for its electric vehicle (EV) industry in response to growing foreign competition. EV-related stocks like Li Auto, Geely, and Nio rallied strongly on the news.

Singapore

Stronger-than-expected Q2 GDP

Singapore’s economy grew 4.3% in Q2 2025, ahead of expectations (~3.5%), driven by robust industrial production and trade activity.

Monetary Authority of Singapore (MAS) cautions on outlook

MAS warned that growth may moderate in the second half of the year due to global headwinds, trade uncertainty, and weaker external demand.

Stock market performance

The Straits Times Index hovered near its record highs (around 3,900 to 4,010) throughout the week, supported by regional market strength and encouraging GDP data.

Corporate developments

Shares of DBS Bank hit record closing highs, boosted by optimism in global markets and strong local economic performance.

IPO leadership

Singapore emerged as one of the top global hubs for cross-border listings in the first half of 2025, accounting for approximately 19% of global IPO activity.

Overview and Outlook

Category	Highlights
Global Equities	U.S. stocks at record highs; strong gains in China and Singapore despite tariff headwinds.
Economic Indicators	U.S. inflation elevated; China’s growth stable but uneven; Singapore beat growth expectations.
Trade and Policy	U.S. tariffs remain a key risk; central banks remain cautious on policy moves.
Market Drivers Ahead	Focus shifts to flash PMIs, central bank minutes (Fed, ECB), earnings results, and China’s potential stimulus actions.

Final Thoughts

Markets remained supported by strong earnings and resilient macroeconomic data despite looming trade concerns. Investors will closely watch upcoming central bank signals and corporate guidance in the coming weeks. The interplay between inflation, tariffs, and monetary policy will remain the key market theme for the second half of the year.