Investor sentiment was rattled on Thursday as central banks in Norway and Switzerland made unanticipated policy moves, adding to the complexity of an already unpredictable global monetary landscape. In a surprising turn, Norges Bank cut its key policy rate, prompting a sharp slide in the Norwegian krone (NOK) against the U.S. dollar (USD) and the euro (EUR). On the same day, the Swiss National Bank (SNB) lowered borrowing costs to 0%, defying expectations of a return to negative interest rates.
Lockheed Martin Corp. $LMT, one of the largest defense contractors globally, is facing diverging analyst views amid shifting macroeconomic and geopolitical conditions. While some investment banks have downgraded the stock due to valuation concerns, others have upgraded their outlook in anticipation of improved defense spending and contract flows. The variance in analyst sentiment comes amid sector-wide scrutiny of defense equities as investors balance geopolitical risk premiums against fiscal sustainability and earnings growth.
Taiwan's Ministry of Economic Affairs has officially added Huawei Technologies Co. Ltd. and Semiconductor Manufacturing International Corp. (SMIC) $0981.HK to its export control list, elevating existing restrictions on technology transfers to mainland China. This move places the Chinese tech giants alongside groups already designated as high-risk entities, including the Taliban and al Qaeda.
The Tel Aviv Stock Exchange (TASE) experienced a sharp sell-off on Thursday, June 12, as escalating geopolitical tension between Israel and Iran spurred a wave of risk aversion. Market participants moved swiftly to lock in profits amid growing concerns over the possibility of direct military confrontation in the region.
As China’s economy continues to struggle with weak domestic demand and property market distress, deflationary trends are reshaping the behavior of middle-class consumers. Recent indicators suggest a growing tendency among Chinese citizens to delay or downgrade discretionary purchases, including in premium categories such as luxury goods. A case in point is Mendy Li, an energy sector employee whose salary was recently cut by 10% due to state-mandated austerity. With her family’s real estate assets having lost half their value, she has resorted to buying second-hand luxury items, illustrating a broader consumer retrenchment.
Circle Internet Financial Ltd. $CRCL, the issuer of the widely-used stablecoin USD Coin (USDC), made a dramatic public debut on the New York Stock Exchange, offering a sharp boost to the dormant IPO market, particularly in the crypto-fintech segment. Shares opened at $69 and closed at $83.23, marking a 168% gain from the initial public offering (IPO) price, with intraday highs exceeding $103 due to intense investor demand and elevated volatility. The company’s valuation, on a fully diluted basis, neared $18 billion by the closing bell.
The Indian rupee (INR) is projected to open marginally weaker against the US dollar (USD) on Tuesday, trading within a constrained band, as a lack of directional cues from global markets combines with a broadly stable greenback. Despite upward momentum in regional Asian currencies, the rupee appears less responsive due to underlying structural and macroeconomic factors.
Manufacturing output across Asia declined in May 2025, underscoring renewed challenges in export-dependent economies. Recent private sector surveys revealed that industrial activity fell for a second straight month, driven by weakening demand from China and escalating tariff-related pressures from the United States. With official Chinese data confirming a sustained downturn and manufacturing PMIs in Japan and South Korea remaining in contraction territory, concerns are growing about the durability of the region’s industrial recovery.
Rio Tinto Group $RIO, the world’s second-largest mining company, has announced that CEO Jakob Stausholm will step down by the end of 2024. The decision follows weeks of internal tension between the executive and the board of directors regarding the company’s strategic direction—specifically, disagreements over capital allocation and spending priorities. Sources familiar with the matter indicate that Stausholm’s preference for long-term growth through lithium, copper, and iron ore expansion clashed with the board’s focus on cost control and capital discipline.
China’s electric vehicle (EV) sector faced renewed volatility as shares of major automakers such as BYD $1211.HK , Nio $9866.HK, Geely Auto $0175.HK, and Leapmotor $9863.HK fell sharply. The decline followed BYD’s weekend announcement of aggressive price incentives across over 20 EV models. The move highlights intensifying competition and margin compression in the world’s largest automobile industry, already strained by slowing demand and overcapacity.
Alphabet Inc. $GOOGL, the parent company of Google, along with the AI startup Character.AI, are required to respond to a lawsuit filed by a Florida woman. The plaintiff alleges that chatbots developed by Character.AI contributed to the suicide of her 14-year-old son. A U.S. district judge, Anne Conway, ruled on Wednesday that the companies could not invoke the First Amendment’s freedom of speech protections to dismiss the case at this early procedural stage.
Target Corporation $TGT, one of the largest U.S. retail chains, slashed its full-year sales forecast following a sharp decline in comparable store sales for the recent quarter. The announcement, made on Wednesday, led to a 7.3% drop in Target shares during early trading as the company blamed the deterioration in consumer confidence and reduced discretionary spending—both influenced by ongoing tariff tensions stemming from policies enacted during the Trump administration.
