Decode Weekly Markets Recap: Highlight and Insights on first week of June

美国

Equities extend their rebound

U.S. stocks posted a second consecutive weekly gain. Small‑capitalization shares led the advance, with the Russell 2000 jumping 3.19%. The Nasdaq Composite added 2.18%, and the Dow Jones Industrial Average rose 1.17%, leaving all major gauges — including the S&P 500 — in positive territory for the year.

Job creation slows but remains resilient

Friday’s non‑farm payrolls confirmed that the labour market is losing some momentum, but not as quickly as many forecasters had feared. Employers added 139,000 positions in May, down from April’s revised 147,000 yet comfortably above the consensus call for 130,000. The unemployment rate was unchanged at 4.2%, where it has hovered since May 2024.

The report followed several softer labour indicators earlier in the week. ADP’s private‑sector survey showed just 37,000 new jobs — the weakest reading since March 2023 — and initial jobless claims rose to 247,000, a seven‑month high.

Activity surveys falter

The Institute for Supply Management’s manufacturing PMI slipped to 48.5 — a third straight contractionary reading — while the services PMI dipped to 49.9, its first move below 50 in 11 months. Both price sub‑indexes stayed firmly in expansion territory, underscoring ongoing cost pressures.

Treasury yields climb on payrolls surprise

Treasury yields were little changed through most of the week but moved higher across the curve after the stronger‑than‑expected payrolls print. Municipal bonds softened amid heavy new issuance, whereas investment‑grade corporates outperformed as new deals were oversubscribed.

Major Index Performance

(Data: Reuters via Yahoo! Finance and Bloomberg)

Past performance is not a reliable indicator of future results. Indexes are unmanaged and cannot be invested in directly. Data source: Reuters via Yahoo! Finance and Bloomberg; closing figures as of 4:00 p.m. ET, 6 June 2025.

欧洲

Europe’s STOXX Europe 600 advanced 0.90% as slowing inflation and a well‑telegraphed European Central Bank (ECB) rate cut reassured investors. Germany’s DAX and Italy’s FTSE MIB each gained 1.28%, France’s CAC 40 added 0.68%, and the UK’s FTSE 100 rose 0.75%.

As expected, the ECB trimmed its deposit rate by 25 basis points to 2.00%, the eighth cut since July 2024. President Christine Lagarde said policy is “in a good place” and that future moves will remain data‑dependent. Markets now price in one more cut, likely in September.

Revised data showed eurozone GDP expanding 0.6% in Q1 — double the initial estimate and the fastest pace since Q3 2022 — thanks largely to strong Irish output and an upward revision in Germany. Headline inflation cooled to 1.9% in May, dipping below the ECB’s 2% target, while the jobless rate hit a record low.

Industrial production in Germany and France contracted more than forecast in April. Separately, Bank of England Governor Andrew Bailey reiterated that the next move in UK rates is likely lower, though the path is “shrouded in uncertainty.”

日本

Japanese equities retreated, with the Nikkei 225 down 0.59% and the broader TOPIX off 1.15%. Bilateral trade talks with the United States produced no breakthrough, though officials signalled a possible announcement at the June G7 summit. The yen was little changed around JPY 144 per U.S. dollar.

The 10‑year Japanese government bond yield eased to 1.46% after a late‑May spike. Bank of Japan Governor Kazuo Ueda indicated that most market participants still favour continued tapering of bond purchases, though the pace could slow next year.

Household spending slipped 0.1% year on year in April, and real wages fell 1.8% as inflation outpaced pay gains. The BoJ nonetheless described the recovery as “moderate” and repeated that additional rate hikes are possible if its projections hold.

中国

Mainland shares moved higher as weak economic readings fuelled expectations of fresh stimulus. The CSI 300 gained 0.88% and the Shanghai Composite rose 1.13%. Hong Kong’s Hang Seng added 2.16%.

Caixin’s manufacturing PMI fell to 48.3 — its lowest since September 2022 — reflecting the drag from U.S. tariffs on smaller exporters. The services PMI edged up to 51.1. Official PMIs were marginally stronger but still hinted at subdued activity, reinforcing calls for policy support.

其他主要市场

Czech Republic

Inflation accelerated to 2.4% y/y in May from 1.8% in April, largely due to higher food and rent costs. Although the underlying trend is still downward, the unexpected pickup could prompt the central bank to pause further rate cuts.

Poland

Poland’s central bank left its reference rate at 5.25% after May inflation eased only slightly, to 4.1% from 4.3%. Policymakers judged that current settings remain consistent with bringing inflation back to target over the medium term.