The US stock market closed Wednesday's trading lower. At closing time on the New York Stock Exchange, the Dow Jones index fell 0.01%, the S&P 500 index fell 0.27%, and the NASDAQ Composite index fell 0.50%. Treasury 10-year yields decreased 6 basis points to 4.41%. Gold futures rose 0.01% to $3344. Crude oil Brent futures rose 4.34% to $69.77. Of the 11 S&P sectors 8 ended in the red. Consumer Cyclical was the weakest, while Energy topped the gainers.
Wall Street dips as investors focus on Middle East tension. Wall Street dipped on Wednesday, with investors spooked by Middle East tensions, while a tame inflation report calmed concerns around tariff-driven price pressures and traders awaited more details on China-U.S. trade talks. Data showed consumer prices increased only marginally in May, while economists expect inflation to accelerate in the coming months due to the Trump administration's import tariffs.
Chinese Stocks’ Premium Over Hong Kong Peers Drops to 5-Year Low. Stocks listed on mainland exchanges, known as A-shares, are now trading at a 27% premium to their counterparts across the border, according to the Hang Seng Stock Connect China AH Premium Index. The valuation gap often widened again when the premium dipped to below 30% in previous occasions. The CSI 300 Index, a benchmark for onshore shares, has lagged the Hang Seng China Enterprises Index this year, set for the widest underperformance since 2003.
Norway’s oil fund calls for urgent reform of European capital markets. The world’s largest sovereign wealth fund is calling for urgent reform of Europe’s capital markets including harmonised tax, insolvency and supervisory rules to ensure the continent does not fall further behind the US and Asia in competitiveness. Norway’s $1.9tn oil fund is the biggest single owner of European assets, owning on average 2.5 per cent of every listed company on the continent.
The EU will include Chinese banks in a new package of anti-Russian sanctions. This will be Brussels' first attempt to directly penalize financial institutions from third countries for cooperating with Russia. According to the European Commission's proposal, European financial institutions will be banned from conducting any transactions with these banks. The draft states that they were allegedly involved in processing payments and providing export financing to circumvent EU sanctions.
US-China trade talks spotlight Kazakhstan & Ukraine as new rare earth frontiers. The U.S. imports 80% of its rare earth elements (REEs) directly from China and currently lacks domestic processing capacity for heavy rare earths. According to Bloomberg, U.S. officials have expressed concern over declining shipments of rare earth magnets, vital components in electric vehicles and defense systems. In addition to improving trade ties with China, the U.S. is actively working to diversify its REE supply chain. Ukraine and Kazakhstan stand out as promising alternative sources. Kazakhstan produces 19 of the 34 rare earth elements considered critical to the economies of the European Union, including beryllium, tantalum, niobium and rhenium. In early April 2025, Almas Kushumov, head of the subsoil use department at the Ministry of Industry, confirmed that the government is preparing to auction off 50 solid mineral deposits, including sites rich in gold and rare metals.