CAC 40 Slides On Interest-rate Worries

The Taiwan stock market bounced higher again on Friday, one day after ending the two-day winning streak in which it had risen more than 300 points or 1.3 percent. The Taiwan Stock Exchange now sits just beneath the 22,050-point plateau although they may tick lower again on Monday.

The Singapore stock market has moved lower in three straight sessions, slumping almost 50 points or 1.3 percent along the way. The Straits Times Index now sits just above the 3,880-point plateau and it's likely to see continued selling pressure again on Monday.

The Malaysia stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day winning streak in which it had gathered almost 10 points or 0.6 percent. The Kuala Lumpur Composite Index now sits just above the 1,500-point plateau and it figures to remain rangebound again on Monday.

The Japan stock market has finished lower in back-to-back sessions, stumbling more than 480 points or 1.2 percent along the way. The Nikkei 225 now rests just above the 38,400-point plateau and it may take further damage on Monday.

The South Korea stock market has climbed higher in five straight sessions, accelerating almost 130 points or 4.3 percent along the way. The KOSPI now rests just above the 3,020-point plateau for the first time in three and a half years, although investors figure to lock in gains on Monday.

Singapore will on Monday release May figures for consumer prices, highlighting a light day for Asia-Pacific economic activity. In April, overall inflation was down 0.3 percent on month and up 0.9 percent on year, while core CPI rose an annual 0.7 percent.

The euro firmed against its major counterparts in the New York session on Friday, as risk sentiment improved after U.S. President Donald Trump delayed decision on joining the Israel-Iran conflict.

Gold climbed higher on Thursday amid renewed threats of a tariff war, simmering US-Iran geopolitical tensions, and a softer U.S. jobs data. Front Month Comex Gold for June delivery gained $59.60 (or 1.79%) to $3380.90 per troy ounce. Front Month Comex Silver for June delivery gained 4.70 cents (or 0.13%) to $36.213 today. In a significant development, U.S. President Donald Trump said that, in the coming weeks, he is going to send letters to nations trading with US, setting unilateral tariffs even ahead of the July 9 deadline he had already set for negotiations. Adding to geopolitical tension, the U.S. has begun evacuating non-essential staff from its Baghdad embassy. This move comes after Trump's statement where he said that he felt less confident of a US-Iran nuclear deal. He however had added that US would not allow Iran to have nuclear weapons. Iranian defense minister responded to this saying Iran would attack U.S. bases if there is a conflict. According to data released by the U.S. Commerce Department, producer prices have edged up 0.1 percent for May 2025, compared to forecasts of a 0.2 percent increase. Also, the US Labor Department revealed that the initial jobless claims in the U.S. held steady at 2,48,000 for the first week of June contrary to market expectations of a drop to 2,40,000. Continuing jobless claims jumped by 54,000 to 19,56,000 in the week ending May 31. All these data indicated a soft U.S. labor market amid ongoing economic uncertainty. The U.S. dollar fell to a more than three-year low. In light of these developments, market expectations of a rate cut in September by the U.S. Federal Reserve has now increased.