Key Takeaways
- Softbank (SFTBY) shares plummeted 10%, spearheading a broader technology sector sell-off that dampened sentiment across Asia-Pacific markets.
- China’s oil imports crashed to approximately 6.6 million barrels per day (b/d) in May, representing a massive 38% decline compared to the 2025 average.
- Sweden’s inflation data surprised to the upside, with May CPI rising 0.8% Y/Y against estimates of 0.5%, while Switzerland reported cooler-than-expected inflation at 0.6%.
- Intel (INTC) and Foxconn (HNHPF) announced a strategic partnership to co-develop AI infrastructure and advanced computing platforms.
- U.S. President Trump signaled a potential deal with Iran could be reached as early as this weekend, causing Brent crude to slip 0.7%.
Tech Sector Under Pressure as Softbank Slides
Global equity markets faced significant headwinds on Thursday, led by a 10% plunge in Softbank (SFTBY) shares. The decline triggered a wider tech rout, weighing heavily on the ASX 200, which closed down 1.1% at 8,686.10 points. Investors appear to be recalibrating exposure to high-growth tech stocks amid broader macroeconomic uncertainty.
In a notable bright spot for the sector, Intel (INTC) and Foxconn (HNHPF)—formally known as Hon Hai Technology—revealed a strategic collaboration to develop AI infrastructure. The partnership aims to build next-generation computing platforms to meet the surging demand for artificial intelligence. This move highlights the ongoing race among hardware giants to secure a dominant position in the AI supply chain.
Divergent Inflation Trends in Europe
Economic data from Europe presented a mixed picture for central bankers. Sweden’s May CPI came in at 0.8% Y/Y, significantly higher than the 0.5% forecast and a sharp reversal from the previous month's -0.1%. The CPIF, which excludes interest rate changes, hit 1.5%, suggesting that price pressures in the Swedish economy remain stickier than anticipated.
Conversely, Switzerland’s April CPI remained steady at 0.6% Y/Y, missing the 0.7% consensus estimate. The monthly figure rose just 0.2%, trailing expectations of 0.3%. These diverging paths suggest that while some European nations are nearing price stability, others may face a more prolonged battle against inflation, potentially complicating future rate decisions by the Riksbank and the Swiss National Bank.
Energy Markets and Geopolitical Developments
The energy sector is reacting to a dramatic slowdown in Chinese demand, with oil imports falling to 6.6 million b/d. This 38% drop from the 2025 average is being cited as one of the most critical stories in global markets, reflecting a significant cooling in the world’s second-largest economy. The sharp decline in Chinese consumption is providing a bearish backdrop for global crude prices.
Adding to the downward pressure on energy, Brent crude for August delivery fell 0.7% following comments from U.S. President Trump regarding Iran. Trump noted that negotiations are "going well" and suggested a deal could be finalized within days or weeks. However, geopolitical tensions remain high elsewhere, as Israeli strikes were reported in Lebanon shortly after a conditional truce announcement, and Ukraine reported processing 35 million tons of cargo through sea ports despite ongoing Russian drone attacks.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.