Group 1 - The report highlights that the escalation of the conflict in the Middle East is likely to create short-term volatility in the US stock market, primarily due to geopolitical uncertainties [1] - It is noted that while "soft" economic data has shown improvement, there is a lack of supporting "hard" data in the short term [1] - The report indicates that historical analysis shows wars typically do not prevent long-term gains in the US stock market, as the key factors are the nature of the conflict and the US economy's response [1] Group 2 - The report discusses the recent US CPI data, which showed a month-on-month increase of 0.1%, below the expected 0.2%, and a year-on-year increase of 2.4%, meeting expectations [2] - It mentions that the market is increasingly betting on two interest rate cuts by the Federal Reserve this year due to the CPI data [2] - The report expresses a cautious outlook on the US long-term treasury yields, suggesting that the risks of rising yields outweigh the risks of falling yields in the short term [3] Group 3 - The report notes that the Hong Kong stock market is experiencing increased rotation, with a need for new capital and sustained policy stimulus for continued rebounds [4] - It highlights that global funds are primarily flowing into developed markets, with US stocks still in a rebound trend [4] - The report indicates that the gold ETFs have seen significant inflows, particularly into SPDR Gold Trust, which received $721 million [6][19]

Group 1 - Vietnam officially announced its membership in the BRICS organization, becoming a partner country, signaling a shift in its geopolitical stance [1] - The U.S. imposed a 46% tariff on Vietnamese goods, significantly impacting Vietnam's economy, which relies heavily on exports to the U.S. [3][5] - The Vietnamese Dong depreciated to a historical low of 25,455, making it one of the worst-performing currencies in Asia [3] Group 2 - Vietnam's government sought to negotiate with the U.S. to reduce tariffs and open markets, but faced further punitive measures instead [5][7] - The realization that being an ally of the U.S. could be more dangerous than being its adversary led Vietnam to reconsider its foreign policy [7][12] - Vietnam's previous attempts to balance relations between the U.S. and China resulted in a deadlock, prompting a reevaluation of its strategic partnerships [8][12] Group 3 - The appeal of joining BRICS is driven by the desire for energy security and the ability to circumvent U.S. dollar dominance [16][18] - Vietnam's trade with China increased by 17.46% in the first quarter, highlighting the deep economic ties between the two nations [18] - The trend of Southeast Asian countries looking towards BRICS reflects a broader shift away from reliance on the U.S. [14][19] Group 4 - The growing membership of BRICS, now representing 42% of the global population and 26% of global GDP, indicates a significant challenge to U.S. hegemony [21] - The internal dynamics of BRICS are changing, with Southeast Asian nations potentially becoming new pillars of the organization [23] - Vietnam's alignment with BRICS is expected to enhance China's influence in Southeast Asia, undermining U.S. efforts to maintain regional dominance [23][25]

Core Viewpoint - Major industry ETFs in the US are mostly down, with global airline and regional banking ETFs dropping over 2%, and banking ETFs nearly down 2% [1] Group 1: Industry Performance - Global airline industry ETF is priced at $21.87, down by $0.55 (-2.45%), with a trading volume of 620,500 shares and a year-to-date decline of 13.73% [2] - Regional banking ETF is priced at $56.56, down by $1.22 (-2.11%), with a trading volume of 2,409,700 shares and a year-to-date decline of 5.66% [2] - Banking ETF is priced at $53.16, down by $1.05 (-1.94%), with a trading volume of 110,800 shares and a year-to-date decline of 3.48% [2] - Financial sector ETF is priced at $50.09, down by $0.92 (-1.79%), with a trading volume of 5,092,500 shares and a year-to-date increase of 4.01% [2] Group 2: Other Sector Performance - Semiconductor ETF is priced at $259.13, down by $4.02 (-1.53%), with a trading volume of 833,400 shares and a year-to-date increase of 7.00% [2] - Global technology stock ETF is priced at $87.17, down by $0.97 (-1.10%), with a trading volume of 7,682 shares and a year-to-date increase of 2.86% [2] - Biotechnology index ETF is priced at $127.94, down by $1.06 (-0.82%), with a trading volume of 248,700 shares and a year-to-date decline of 3.15% [2] - Consumer discretionary ETF is priced at $212.08, down by $1.63 (-0.76%), with a trading volume of 253,000 shares and a year-to-date decline of 5.21% [2] - Energy sector ETF is priced at $87.38, up by $0.79 (+0.91%), with a trading volume of 7,943,300 shares and a year-to-date increase of 2.80% [2]

Report Industry Investment Rating No information provided. Core View of the Report The report focuses on the current situation of different industries, including production and service industries, and analyzes the price trends, production status, and market pricing of upstream, midstream, and downstream industries. It also mentions that the overall industry credit spread has recently declined slightly [1][2][3][4]. Summary by Relevant Catalogs 1. Middle - View Event Overview - **Production Industry**: The US Trade Representative's Office has launched a public consultation on a proposed modification to ship - related policies, which is considered beneficial to the shipping and energy industries as it relaxes review and fee requirements for foreign ships and eases regulations on LNG carriers [1]. - **Service Industry**: The Ministry of Finance is actively cooperating to improve the "one - old - one - young" service system, advancing community - supported home - based elderly care services and promoting the high - quality development of inclusive childcare services [1]. 2. Industry Overview Upstream - **Energy**: International oil prices are rising [1]. - **Chemical**: The prices of urea and soda ash are falling [1]. - **Black**: There is a slight decline [1]. Midstream - **Chemical**: The PTA operating rate has rebounded, while the PX operating rate has recently declined [2]. - **Infrastructure**: The asphalt operating rate has been continuously rising recently [2]. Downstream - **Real Estate**: The sales of commercial housing in first - and second - tier cities are the same as last year and at a near - three - year low [3]. - **Service**: The number of domestic flights has decreased cyclically [3]. 3. Market Pricing The overall industry credit spread has recently declined slightly [4]. 4. Industry Credit Spread Tracking The report provides the credit spread data of various industries on June 11, 2025, including the values of the same period last year, a quarter ago, a month ago, last week, and this week, as well as the quantile [49]. 5. Key Industry Price Index Tracking The report shows the price index data of multiple industries on June 10, 2025, including the frequency, unit, update time, current value, year - on - year change, and the trend in the past 5 days [50].

Group 1 - Major industry ETFs in the US stock market mostly rose, with Energy ETFs and Biotechnology Index ETFs increasing over 1%, and Healthcare ETFs rising nearly 1% [1] Group 2 - Energy ETF (XLE) current price is $84.77, up by $1.20 (+1.44%), with a trading volume of 1.824 million shares and a total market value of $21.228 billion, showing a year-to-date change of -0.27% [2] - Biotechnology Index ETF (IBB) current price is $128.88, up by $1.29 (+1.01%), with a trading volume of 122,100 shares and a total market value of $10.233 billion, reflecting a year-to-date change of -2.43% [2] - Healthcare ETF (XLV) current price is $135.14, up by $0.99 (+0.74%), with a trading volume of 304,000 shares and a total market value of $25.860 billion, indicating a year-to-date change of -1.39% [2] - Semiconductor ETF (SMH) current price is $258.06, up by $1.10 (+0.43%), with a trading volume of 166,700 shares and a total market value of $3.051 billion, showing a year-to-date change of +6.56% [2] - Global Technology ETF (IXN) current price is $87.20, up by $0.23 (+0.26%), with a trading volume of 4,806 shares and a total market value of $1.221 billion, reflecting a year-to-date change of +2.89% [2] - Utilities ETF (XLU) current price is $80.86, up by $0.19 (+0.24%), with a trading volume of 531,700 shares and a total market value of $11.739 billion, indicating a year-to-date change of +7.59% [2] - Consumer Staples ETF (XLP) current price is $81.77, up by $0.19 (+0.23%), with a trading volume of 352,400 shares and a total market value of $13.837 billion, reflecting a year-to-date change of +4.57% [2] - Internet Index ETF (FDN) current price is $260.81, up by $0.39 (+0.15%), with a trading volume of 3,871 shares and a total market value of $17.318 billion, indicating a year-to-date change of +7.25% [2] - Consumer Discretionary ETF (XLY) current price is $213.94, down by $0.07 (+0.03%), with a trading volume of 77,139 shares and a total market value of $26.872 billion, showing a year-to-date change of -4.38% [2] - Technology Sector ETF (XLK) current price is $239.56, up by $0.03 (+0.01%), with a trading volume of 161,100 shares and a total market value of $76.193 billion, reflecting a year-to-date change of +3.21% [2] - Banking ETF (KBE) current price is $54.36, unchanged (0.00%), with a trading volume of 28,542 shares and a total market value of $4.208 billion, indicating a year-to-date change of -1.30% [2] - Regional Banking ETF (KRE) current price is $58.30, down by $0.01 (-0.01%), with a trading volume of 295,200 shares and a total market value of $4.866 billion, reflecting a year-to-date change of -2.75% [2] - Financials ETF (XLF) current price is $50.90, down by $0.10 (-0.19%), with a trading volume of 817,600 shares and a total market value of $56.655 billion, indicating a year-to-date change of +5.70% [2] - Global Airlines ETF (JETS) current price is $23.24, down by $0.08 (-0.34%), with a trading volume of 16,867 shares and a total market value of $73.206 million, reflecting a year-to-date change of -8.32% [2]

Market Performance - Emerging markets outperformed slightly last week, with MSCI Emerging Markets up by 1.9% compared to MSCI Developed Markets at 1.3% [3] - Among developed markets, the Nasdaq index showed the strongest performance with a gain of 2.2%, while the Nikkei 225 was the weakest, declining by 0.6% [3] - In the emerging markets, the South Korean Composite Index led with a 4.2% increase, while the Mexican MXX index lagged with a 0.4% rise [3] Trading Sentiment - Global stock market trading volumes generally weakened last week, with Hong Kong's Hang Seng Index trading volume decreasing to 171 billion shares and $588.7 billion [11] - In Hong Kong, short selling increased to 15.9%, indicating a low historical sentiment level, while the NAAIM manager index in the US decreased to 81.6%, suggesting a high historical sentiment level [11] Valuation Trends - Developed markets saw an overall valuation increase, with the latest PE and PB ratios at 22.7x and 3.6x, respectively, placing them in the 90% and 99% percentile levels since 2010 [17] - Emerging markets also experienced a valuation uplift, with PE and PB ratios at 15.2x and 1.9x, respectively, in the 75% and 86% percentile levels since 2010 [18] Sector Performance - In Hong Kong, the materials and healthcare sectors led with gains of 5.6% and 4.1%, while telecommunications and industrial sectors lagged with declines of 0.6% and 0.2% [9] - In the US, communication services and information technology sectors outperformed with increases of 3.2% and 3%, while consumer staples and utilities underperformed with declines of 1.6% and 1% [9] Fund Flows - There was a continuation of capital inflow into Hong Kong stocks, despite a slight tightening of macro liquidity globally [25] - Recent data indicated a net outflow of 5.2 billion HKD from Hong Kong stocks, with stable foreign capital experiencing a significant outflow of 21.8 billion HKD [27] Earnings Expectations - Earnings expectations for global markets were mostly revised downwards last week, with the Hang Seng Index's 2025 EPS forecast adjusted from 2220 to 2219 [29] - In the US, the S&P 500's 2025 EPS forecast remained unchanged at 263, while in Europe, the STOXX50's EPS forecast also held steady at 347 [30]

Core Viewpoint - The performance of major industry ETFs in the U.S. stock market is mixed, with semiconductor ETFs showing significant gains while financial sector ETFs are declining [1]. Group 1: Semiconductor Sector - Semiconductor ETF increased by 2.28%, reaching a price of $258.50, with a trading volume of 205.80 million shares and a total market value of $30.56 billion [2]. - Year-to-date performance for the semiconductor ETF is up by 6.74% [2]. Group 2: Regional Banks - Regional bank ETF rose by 0.94%, priced at $58.56, with a trading volume of 183.49 million shares and a total market value of $48.87 billion [2]. - Year-to-date performance for the regional bank ETF is down by 2.31% [2]. Group 3: Financial Sector - Financial sector ETF decreased by 0.86%, priced at $50.84, with a trading volume of 521.25 million shares and a total market value of $565.87 billion [2]. - Year-to-date performance for the financial sector ETF is up by 5.58% [2]. Group 4: Technology Sector - Technology sector ETF increased by 0.89%, priced at $240.49, with a trading volume of 119.49 million shares and a total market value of $764.89 billion [2]. - Year-to-date performance for the technology sector ETF is up by 3.61% [2].

Core Viewpoint - The proposed Section 899 of the "Big and Beautiful Act" aims to impose higher taxes on foreign investors in the U.S., causing significant concern and opposition from multinational corporations and financial institutions [1][2][4]. Group 1: Impact on Multinational Corporations - Approximately 70 multinational corporations, including Toyota, Shell, LVMH, and SAP, are set to discuss the implications of Section 899 with U.S. lawmakers [1]. - The International Bankers Association plans to lobby against the clause, highlighting its potential negative impact on global banking giants like HSBC and BNP Paribas [1][2]. Group 2: Taxation Details - Section 899 allows the U.S. Treasury Secretary to unilaterally determine "unfair foreign taxes" and impose punitive tax rates of up to 20% on affected foreign investors [2][4]. - The tax rate will start at an increase of 5 percentage points, rising annually by 5 percentage points, capped at 20 percentage points above the statutory rate [5]. Group 3: Economic Implications - The clause is projected to raise $116 billion over the next decade, but its revenue generation is considered limited compared to the overall debt increase of $2.4 trillion expected from the entire "Big and Beautiful Act" [5]. - The clause may deter foreign direct investment, potentially leading to market volatility and threatening job opportunities in various U.S. communities [6][7]. Group 4: Opposition from Business Associations - Business associations argue that Section 899 could severely impact the long-term growth of multinational companies operating in the U.S. [6]. - The International Financial Institute warns that the measure could have unintended negative effects on U.S. businesses and employment [7]. Group 5: Future Considerations - There is a possibility that the final version of the clause may be weakened or adjusted in its implementation, as the concept of foreign entities paying taxes in the U.S. gains traction in Congress [7].

Core Viewpoint - The article discusses the selective application of tariffs by the U.S. government, highlighting how Russia and North Korea have managed to avoid these tariffs while other allies face significant trade barriers. This reflects a dual standard in U.S. trade policy driven by political and economic interests. Group 1: U.S. Tariff Policy - The U.S. has refrained from imposing tariffs on Russia to avoid disrupting the ongoing Russia-Ukraine negotiations, indicating a strategic choice to separate economic measures from diplomatic efforts [3] - In the first quarter of 2024, U.S. imports of strategic materials from Russia increased by 37%, with titanium and uranium being critical for the aerospace and energy sectors, respectively [5] - The U.S. is currently seeking to restart diplomatic relations with North Korea, which has led to a lack of tariffs on North Korean goods, despite the absence of formal trade [7] Group 2: Economic Implications - The dual standards in tariff application reveal the deep intertwining of U.S. capital and political interests, as seen in the military-industrial complex where companies profit from both sides of the Russia-Ukraine conflict [8] - Imposing tariffs on Russian companies could disrupt U.S. supply chains, particularly in agriculture, where significant exports are routed through Kazakhstan to North Korea [9] - The article suggests that the U.S. is leaving an emergency channel open in global supply chains, allowing goods to be rerouted through Russia and North Korea to avoid tariffs [10] Group 3: Global Trade Dynamics - The article highlights that other countries may adopt similar strategies to bypass U.S. tariffs, using Russia and North Korea as intermediaries for exports to the U.S. [13] - The U.S. has previously imported palladium from Russia despite it being on the sanctions list, indicating a pattern of selective enforcement of trade regulations [13] - The ongoing tariff battle is reshaping global trade dynamics, encouraging businesses to find creative ways to continue operating in the U.S. market despite tariffs [15]

Group 1 - The U.S. energy and agriculture sectors have suffered significant damage due to the trade war, with China reducing its imports of U.S. crude oil by 95% since the trade conflict began, leading to severe inventory buildup and price drops for U.S. energy companies [5] - The agricultural sector, particularly in "deep red states," has also experienced market turbulence, affecting crops like soybeans and meat [5] - The financial markets, including the dollar, U.S. bonds, and stocks, have faced sharp declines, with the yield curve inversion signaling a potential economic recession [7][8] Group 2 - The employment market in the U.S. has begun to feel the impact of the trade war, with job losses in the energy and agriculture sectors due to production cuts and layoffs, as well as in manufacturing due to supply chain adjustments [12] - Trump's recent statements indicate a shift towards a more conciliatory approach to China, suggesting that future tariffs will be significantly lower than the previously proposed 145% [14] - The international response to the U.S. trade strategy has been mixed, with allies like the EU not fully cooperating with U.S. efforts to isolate China, indicating a shift in the global economic order [17][19]