Ge Long Hui·2025-06-04 01:36Market Performance - Developed markets outperformed last week, with MSCI Global Index up by 1.4%, MSCI Developed Markets up by 1.7%, and MSCI Emerging Markets down by 0.9% [3] - In developed markets, the strongest performer was Nikkei 225 (+2.2%), while the weakest was France's CAC40 (+0.2%) [3] - Emerging markets saw the best performance from the Korean Composite Index (+4.1%) and the worst from Taiwan Weighted Index (-1.4%) [3] Sector Performance - In the US stock market, real estate and information technology sectors led with gains of 2.7% and 2.4% respectively, while energy and materials lagged [9] - In the Hong Kong market, healthcare and real estate sectors performed well, with increases of 3.4% and 1.4% respectively [9] - European stocks saw energy and information technology sectors leading with gains of 1.4% each, while materials and communication services lagged [9] Valuation Trends - As of May 30, 2025, developed markets' PE and PB ratios were 22.3x and 3.6x, respectively, indicating high valuation levels [23] - The Nasdaq and Dow Jones Industrial Average had the highest PE ratios at 39.7x and 28.8x, respectively [23] - Emerging markets' PE and PB ratios were 14.9x and 1.9x, with the highest valuations seen in the ChiNext Index and India's Sensex30 [24] Earnings Expectations - In the Hong Kong market, the earnings forecast for the Hang Seng Index for 2025 was slightly revised down from 2223 to 2219 [31] - The US market maintained its earnings expectations for the S&P 500 Index at 263, with the information technology sector seeing a slight increase [31] - European earnings expectations remained stable, with the Eurozone STOXX50 Index holding at 347 [31] Liquidity Conditions - Global liquidity conditions turned more accommodative last week, with declines in benchmark interest rates in the US and China [34] - The market is anticipating potential interest rate cuts from the Federal Reserve, with expectations of 2.2 cuts this year [34] - Long-term interest rates in major economies like France, Germany, and the US saw significant declines, exceeding 10 basis points [34] Economic Outlook - US economic expectations have improved, with the Citigroup Economic Surprise Index rising from 6.0 to 11.5 [43] - European economic expectations also increased, with the Eurozone Economic Surprise Index rising from 12.5 to 17.7 [43] - China's Economic Surprise Index decreased slightly but remains at a historically high level, reflecting strong policy expectations [43]