June 13 Market Analysis

The unexpected weakness in PPI data helped US stocks continue to rise. Among them, the S&P 500 and NASDAQ indices reached record highs for the fourth day in a row. Technology stocks were particularly outstanding. Nvidia rose more than 3% for two consecutive days, and both Apple and Broadcom reached record highs. Apple once again surpassed Microsoft in market capitalization to become the individual stock with the highest market capitalization. In addition, Tesla approved Musk's $56 billion salary plan at the shareholders' meeting and plans to move its place of registration to Texas. As a result, the stock price rose nearly 3%.

After announcing strong quarterly earnings, Broadcom's stock price surged by more than 12%, benefiting from strong demand for AI technology. After exceeding expectations in the second quarter, Adobe also surged 17% after the market and raised its full-year performance forecast.

In France, the market is once again experiencing a double whammy between stocks and bonds. The performance of both the French stock market and the bond market was weak, and the spread between 10-year French bond yields and German bonds widened to the largest since 2017. Furthermore, after the US PPI data was released, the yield on US long-term treasury bonds continued to decline, and the yield on 30-year US bonds declined further after the bid.

In the crude oil market, despite an initial decline after PPI data was released, it eventually turned upward and continued to rise for four consecutive days, reaching a new two-week high. The price of gold fell more than 1% after a brief rise. Copper and nickel prices also fell separately. Nickel fell to a new low in February, and copper prices in London were close to a seven-week low.

In China, stock market performance fluctuated. Many stocks rose and stopped sharply, and BYD shares rose nearly 6%, indicating active trading in the market. China Securities rebounded slightly in the US stock market, and the stock price performance of Station B and NIO Auto was active. The offshore renminbi strengthened briefly after PPI data was released, but the overall trend showed downward pressure.