This update was written automatically with AI from market data and news wire reports, and published without review by a person.
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.
Automated market updates written with AI from market data and news wire reports, published without human review.