Key takeaways

• US stocks were mixed; Treasury yield curve steepened.
• European stocks and government bond yields rose.
• Asian stocks were mixed but mostly lower.

Markets

US stock indices traded mixed on Thursday, as weakness in chipmakers and other beneficiaries of the AI theme was offset by gains in other sectors, especially some defensive and rate-sensitive stocks. The S&P 500 ended flat.

US Treasury yield curve steepened slightly as soft payrolls data reduced near-term Fed rate hike expectations. 2-year yields fell 3bp to 4.14% while 10-year yields closed little changed at 4.48%.  

European stocks rallied on Thursday with broad-based gains outside the technology sector. The Euro Stoxx 50 rose 1.2%. The German DAX surged 2.2% and the French CAC gained 1.7%. In the UK, the FTSE 100 ended 1.7% higher.

European government bonds fell. 10-year German bund yields edged up 2bp to 2.90% and 10-year French bond yields rose 3bp to 3.71%. In the UK, 10-year gilt yields ended at 4.77% (+1bp).

Asian stock markets traded mixed but mostly lower on Thursday, with semiconductor shares falling following US tech losses amid resurfacing worries over long-term AI demand. Korea’s Kospi dropped 7.9%, while Japan’s Nikkei 225 lost 2.5%. Elsewhere, China’s Shanghai Composite fell 2.0%, whereas Hong Kong’s Hang Seng rose 0.8%. India’s Sensex was up 0.8%.

Crude oil prices consolidated on Thursday after recent declines. WTI for August delivery edged up 0.2% to USD68.7 a barrel.

Key Data Releases and Events

Releases yesterday

US nonfarm payrolls fell sharply to 57k in June, from a downwardly revised 129k in May, below market expectations.

Releases due today (3 July 2026)

No major releases.

https://www.hsbc.com.my/wealth/insights/asset-class-views/investment-daily/