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Significant global events this week: Novo Nordisk, Xpeng, and Tencent prominently featured among key players

Global equities markets experienced a downturn over the week, mainly due to tensions in US-China trade negotiations and heightened geopolitical issues. American stock indexes also contributed to the trend.

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Significant stock markets worldwide concluded the week on a downturn, primarily influenced by...
Significant stock markets worldwide concluded the week on a downturn, primarily influenced by US-China trade negotiations and fresh political tensions. American equities were among the impacted.

Fresh Take:

International stock markets plummeted at the end of the week, following ongoing US-China trade talks and escalating geopolitical issues.

US President Donald Trump announced a preliminary trade deal with China, focusing on rare earth supplies and Chinese student access to American universities. Although this deal failed to invigorate market sentiment, Trump hinted at sending letters to primary trading partners in the next one to two weeks, detailing unilateral tariff rates.

The global arena was troubled once more after Israel launched strikes on Iranian nuclear and military facilities, causing a surge in oil prices and driving investors towards energy stocks.

The S&P 500 (SP500) declined 0.4%, the Dow Jones (DJI) faltered by 1.1%, and the Nasdaq 100 (COMP:IND) dropped 0.8%. European equities (STOXX) ended the week with a 1.7% decrease, as investors chose cautious optimism with US-China trade negotiations.

Although European officials are less enthusiastic about their own trade negotiations with the US, they anticipate that only a preliminary agreement might be reached by the July 9 deadline. Euro Area registered a trade surplus of €9.9B in April. However, the UK's economy took a blow as the trade deficit expanded in April, and industrial production shrank by 0.6% in April.

Germany's (DAX:IND) and France's (CAC:IND) equities plummeted 2.9% and 1.4%, respectively, while London's FTSE 100 (UKX) edged up 0.1%. Novo Nordisk (NVO) shares escalated to their highest level in over two months, following a Financial Times report that activist hedge fund Parvus Asset Management is building a stake in the Danish drugmaker.

Qualcomm (QCOM) acquired British semiconductor company Alphawave IP (OTCPK:AWEVF) at an implied enterprise value of approximately $2.4B. On the flip side, Inditex (OTCPK:IDEXY) recorded weaker-than-expected quarterly sales and attributed the downturn to economic headwinds.

Asian markets slid at the end of the week due to US-China trade talks and a barrage of regional economic data. Trump's plans to articulate unilateral tariff rates in the impending weeks kept investor apprehension looming. The recently inked trade deal between the two economic titans includes China providing necessary rare earths to the US, while Chinese students retain access to American universities. The deal also finalizes a 55% U.S. tariff rate on Chinese imports, with China imposing a 10% levy on US goods.

China's consumer prices plummeted for a fourth consecutive month, and producer prices experienced their steepest drop in nearly two years. Separately, the latest trade statistics revealed a decrease in imports, spurred by weakened consumption.

In the week, Japan markets (NKY:IND) fell 0.8%. Business sentiment dwindled in the second quarter due to swelling uncertainty over US trade policy and its potential influence on Japan's export-dependent economy. Although the nation's GDP in Q1 2025 held steady, the performance was slower than Q4's 0.6% growth.

Major Asian corporate news featured Chinese electric vehicle maker XPeng (XPEV) reportedly developing advanced chips for Volkswagen cars (OTCPK:VLKAF) (OTCPK:VWAGY). Additionally, Tencent Holdings (OTCPK:TCEHY) (OTCPK:TCTZF) is presumed to be in talks to acquire the gaming company, Nexon (OTCPK:NEXOF), to bolster its position in the gaming industry.

Investors keen on tracking European markets can consider ETFs like (NYSEARCA:EWG), (NYSE:GF), (NYSEARCA:EWI), (NYSEARCA:EWQ), (NASDAQ:FGM), (NASDAQ:DAX), (NYSEARCA:FLGR), (NYSEARCA:FXB), (NYSEARCA:EWU), (NASDAQ:FKU), (BATS:EWUS), (NYSEARCA:FLGB), and (NYSEARCA:GREK). For those interested in Asia and Oceania, consider ETFs such as (NYSEARCA:EWJ), (NYSE:JEQ), (NYSEARCA:FXI), (NASDAQ:PGJ), (NYSEARCA:EWH), (NYSEARCA:DXJ), (NYSE:CAF), (NYSEARCA:FXY), (NYSEARCA:YINN), (NYSEARCA:YANG), (NASDAQ:CXSE), and (NYSEARCA:KWEB).

  1. In the face of ongoing US-China trade talks and geopolitical issues, international finance and investing in business sectors, such as energy, have become a hedge for investors due to increasing oil prices.
  2. The Trump administration's hinted unilateral tariff rates and the preliminary trade deal between the US and China, focusing on rare earth supplies, student access to American universities, and tariff rates, have created apprehension within the finance sector, affecting stock market performance.
  3. Amid the US-China trade negotiations and regional economic data, technology companies like Qualcomm have chosen to invest in businesses like British semiconductor company Alphawave IP, revealing the continued importance of technology in the business world.
  4. As the UK's economy experiences a decrease in industrial production and an expanding trade deficit, the politics of trade negotiations have become a point of general-news interest for investors tracking business trends in Europe and crime-and-justice implications.

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