Investment Daily: US stocks traded mixed, while Treasuries rose amid lower oil prices

25 June 2026

US stocks traded mixed on Wednesday. The S&P 500 ended nearly flat, down 0.1%, with Energy and Info Tech leading losses, while Industrials and Consumer Discretionary gained.

US Treasuries rose, and the yield curve flattened amid further drop in oil prices. 10-year yields shed 11bp to 4.39%.   

European stocks traded mixed on Wednesday. The Euro Stoxx 50 fell 0.3%. The German DAX declined 0.6%, while the French CAC rose 0.5%. In the UK, the FTSE 100 gained 0.3%.

European government bonds rose (yields fell). 10-year German bund yields fell 6bp to 2.86%, and 10-year French bond yields dropped 5bp to 3.63%. In the UK, 10-year gilt yield declined 7bp to 4.68%.

Asian stock markets lacked clear direction on Wednesday, as AI earnings and valuation concerns continued to weigh on certain segments in the regional markets. Japan’s Nikkei 225 fell 0.9% while Korea’s Kospi rebounded 3.3% following the previous session’s selloff. Elsewhere, Hong Kong’s Hang Seng and China’s Shanghai Composite ended 0.3% and 0.1% higher, respectively. India’s Sensex gained 1.0%.

Crude oil prices extended declines on Wednesday. WTI for August delivery settled 3.9% lower at USD70.3 a barrel.

The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.

In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.

In the US, the headline PCE price index is expected to rise 0.5% mom, largely on higher energy prices. Core inflation may also edge up.

Mexico’s central bank is likely to keep interest rates on hold at 6.50% as headline inflation has softened recently but core pressures persist.