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UK house prices fall 0.8% in June, biggest drop since 2023: is the property boom over?

United Kingdom house prices experienced their most significant monthly decline in over two years in June, a clear sign that prospective buyers are feeling the pressure after an increase in transaction taxes came into effect in April.

The unexpected drop casts a shadow over the near-term outlook for the UK property market.

According to a report released Tuesday by Nationwide Building Society, one of Britain’s top mortgage lenders, the average cost of a home unexpectedly fell by 0.8% in June, bringing the average price down to £271,619 ($373,270).

This marked the third price decline in as many months and was the largest single monthly drop since February 2023.

The data starkly contrasted with the expectations of economists polled by Reuters, who had forecast a modest 0.1% increase for the month.

The annual rate of house price growth also cooled considerably, falling to 2.1% in June, down from 3.5% recorded in the previous month.

This annual growth figure was also well below the 3.1% expansion that economists had anticipated.

Stamp duty hike and economic headwinds bite

This latest report suggests that a brief boost seen in May’s house price data was short-lived.

Aspiring buyers are now contending with the impact of higher stamp duty taxes, which have added thousands of pounds to the cost of purchasing a home.

The stamp duty thresholds reverted to their pre-2022 levels on April 1, a move that has increased costs for many property buyers and injected volatility into both prices and transaction volumes.

First-time buyers, for example, now start paying the levy on properties worth £300,000 or more, a significant change from the previous, higher threshold of £425,000.

Robert Gardner, Nationwide’s chief economist, directly linked the downturn to this policy change, stating:

The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April.

Beyond the tax changes, Britons appear reluctant to tap into their savings to fund property purchases.

A climate of heightened trade tensions, elevated mortgage rates, and rising costs for essential bills is seemingly eclipsing the benefits of what has otherwise been strong wage growth.

A cautious outlook for the summer

Despite the gloomy June figures, Nationwide’s chief economist offered a cautiously optimistic outlook for the coming months.

Gardner stated that he expects “activity to pick up” from the summer.

He pointed to several underlying strengths in the economy that could support a recovery in the housing market, noting that “the unemployment rate remains low, earnings are rising at a healthy pace in real terms, household balance sheets are strong and borrowing costs are likely to moderate a little”.

However, for now, the sharpest price drop in over two years indicates that the UK housing market is navigating a period of significant pressure, with affordability and buyer confidence being put to the test.

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Politics

Europe gambles on a high-stakes trade deal to avert Trump’s tariff hammer

The clock is ticking down on what could be a defining moment for transatlantic trade.

In a high-stakes gambit, the European Union is signaling it might be willing to swallow a bitter pill—a 10% universal tariff on many of its exports to the United States—but only if it can extract crucial concessions from the Trump administration.

With a deadline of July 9 looming, the two economic superpowers are locked in a tense negotiation to avert a trade war that could send shockwaves through the global economy.

Europe’s calculated risk

Behind closed doors, a potential pathway to a deal is taking shape.

According to a report in Bloomberg that cited people familiar with the delicate negotiations, the EU’s play is to accept the baseline 10% tariff but carve out vital protections for its most critical industries.

Brussels is pushing hard for lower rates on key sectors like pharmaceuticals, alcohol, semiconductors, and commercial aircraft.

Furthermore, they are demanding quotas and exemptions to blunt the severe impact of Washington’s existing 25% tariff on automobiles and its crushing 50% tariff on steel and aluminum.

Sources, who spoke on the condition of anonymity to Bloomberg, describe the proposed arrangement as one that still tilts in America’s favor.

Yet, it’s a compromise the European Commission, the EU’s trade authority, believes it could ultimately live with—a pragmatic choice in the face of a far worse alternative.

That alternative is a scenario where, come July 9, President Donald Trump makes good on his threat to slap tariffs of up to 50% on nearly all of the bloc’s exports to the US.

President Trump has made these tariffs the centerpiece of his economic doctrine, arguing they are necessary to resurrect American manufacturing, fund his tax-cut agenda, and punish countries he claims have taken advantage of the US.

Growing list of Donald Trump’s trade tariff cases

(Source: Bloomberg)

The sheer gravity of the situation was reflected in the market’s knee-jerk reaction to reports of these talks; the S&P 500 briefly stumbled, losing 12 points in seconds before recovering, a testament to the anxiety rippling through Wall Street.

The numbers at stake are staggering. In 2024 alone, the EU shipped €52.8 billion ($62.2 billion) worth of cars and auto parts to the US, its single largest export destination.

The bloc also sent €24 billion in steel and aluminum, primarily from industrial powerhouses Germany, Italy, and France.

A full-blown trade war would put all of this, and much more, in jeopardy.

EU’s trade chief Sefcovic’s mission to Washington

Despite the high tension, a fragile optimism persists. There is a growing belief on both sides of the Atlantic that an interim agreement, a sort of temporary truce, can be hammered out before the deadline.

This would pause the immediate tariff threat and allow the complex negotiations to continue.

To that end, the EU’s trade chief, Maros Sefcovic, is leading a delegation to Washington this week in a crucial, last-ditch effort to find common ground.

The a-la-carte deal would be complex, likely covering not just tariffs but also non-tariff barriers, strategic purchases of key US goods like liquefied natural gas (LNG), and frameworks for cooperation on economic security.

But even if an “agreement in principle” is reached, a cloud of uncertainty will remain, as officials have been unable to specify how long such an interim deal would last.

Four Sscenarios and a retaliation arsenal

The European Commission has been candid with its member states about the endgame, outlining four potential scenarios:

  1. a deal is struck with an “acceptable level of asymmetry”
  2. the US presents an unbalanced offer that the EU is forced to reject;
  3. the deadline is extended, buying more time for talks; or
  4. President Trump walks away from the table entirely and unleashes the tariff storm.

The last scenario is the one that keeps policymakers in Brussels awake at night. If talks collapse, officials have made it clear that the EU is prepared to retaliate with its full arsenal of countermeasures.

The bloc has already approved tariffs on €21 billion of US goods, ready to be deployed at a moment’s notice.

This list is surgically precise, targeting politically sensitive American states and iconic products: soybeans from Louisiana (home to House Speaker Mike Johnson), agricultural goods, poultry, and motorcycles.

And that’s just the opening salvo.

An additional, more punishing list targeting €95 billion of American products has also been prepared. This would hit major industrial goods, including Boeing Co. aircraft, US-made cars, and American bourbon.

Beyond tariffs, the EU is exploring more creative and painful measures, such as export controls and restrictions on US firms’ access to lucrative public procurement contracts.

As the high-stakes negotiation enters its final, critical phase, the world watches to see if diplomacy will prevail or if two of the world’s largest trading partners are about to step off the economic cliff together.

The post Europe gambles on a high-stakes trade deal to avert Trump’s tariff hammer appeared first on Invezz

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Business

USD/CAD forecast as the US dollar index (DXY) crashes

The Canadian dollar resumed its recent rebound after Canada and the United States restarted talks. The USD/CAD exchange rate plunged to a low of 1.3600 on Tuesday, the lowest level in a week, and 8% below the highest level this year.

Potential US and Canada trade deal

The main catalyst for the USD/CAD crash this week was the restart of trade talks between the US and Canada. 

This situation occurred after Canada caved in and ended the planned introduction of a 3% digital tax that would have applied to US companies, including Meta Platforms, Alphabet, and Amazon. 

Canada ended this implementation a few days after Donald Trump ended the talks between the two countries. Without these talks, US tariffs on Canadian goods would have reset at a much higher rate when the 90-day deadline ended. 

Canada needs the trade deal because its economy is not doing well. The most recent data showed that the Canadian economy contracted by 0.1% in April, led by a 1.9% drop in the manufacturing sector.

Canada’s wholesale trade sector also contracted by 1.9% in April. This contraction was offset by a growth in the finance and insurance, and public administration sectors.

Analysts expect the economy to contract again in May, potentially leading to negative growth in the second quarter. Most of this weakness is because of Trump’s tariffs on Canadian goods.

The Bank of Canada (BoC) and the IMF have warned that the economy will slow this year. In a recent note, the BoC estimated that the Canadian economy will grow by 1.4% this year, while inflation will average 2.2% this year. 

Therefore, analysts anticipate that the Bank of Canada (BoC) will restart cutting interest rates to stimulate growth.

US Dollar Index crash

The USD/CAD exchange rate has also declined due to the ongoing decline in the US Dollar Index (DXY). The index, which weighs the dollar against other currencies, has plunged to $96.7, its lowest level in years. It has plunged by over 12% from the year-to-date high, putting it into a correction. 

The dollar index has formed an inverse cup and handle pattern, along with a death cross, indicating further downside in the coming months.

This crash has happened as investors predict that the Federal Reserve will cut interest rates soon as the impact of tariffs on inflation will be muted.

The next key catalyst for the US/CAD pair will be the upcoming manufacturing PMI numbers on Tuesday. These numbers will be followed by the upcoming nonfarm payrolls data on Thursday.

USD/CAD technical analysis

USD/CAD price chart | Source: TradingView

The daily chart shows that the USD/CAD exchange rate has been in a strong bearish trend in the past few weeks, moving from a high of 1.4790 in February to the current 1.3600. 

It recently crashed below the ascending trendline that connects the lowest swings since 2024. It also formed a death cross as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. A death cross is a highly popular bearish pattern.

Therefore, the USD/CAD pair will likely continue falling as sellers target the key support at 1.3425, its lowest point in September last year. A move below that support level will point to more downside. 

The post USD/CAD forecast as the US dollar index (DXY) crashes appeared first on Invezz

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Top crypto price predictions: Algorand, Arbitrum, Polygon

The crypto market remained under pressure on Tuesday despite the good news in the industry. Bitcoin and Ethereum ETFs continued adding assets on Monday, with those tied to BTC adding over $102 million. Ethereum ETFs added over $31 million. 

Further, Robinhood expanded its solutions using the Arbitrum technology. It will now offer over 200 tokenized stocks in places like Europe, allowing investors to buy US equities. 

There are also rising odds that the Securities and Exchange Commission (SEC) will approve spot XRP and Solana ETFs. This article conducts a technical analysis on top cryptocurrencies like Algorand (ALGO), Arbitrum (ARB), and Polygon (POL).

Algorand price technical analysis

ALGO price chart | Source: TradingView

The daily chart shows that the Algorand price has been in a strong downtrend in the past few months as its ecosystem has remained under pressure. For example, its daily active addresses have dropped to 134,000, while the fees paid per day has dropped.

It initially peaked at 0.6116 in November last year and then plunged to the current 0.1870. 

ALGO has moved below the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bears are in control. It has dropped below the important support at $0.2580, the highest swing on May 10.

Algorand price is slowly forming a double-bottom pattern at $0.1447, its lowest swing on April 7. A double-bottom is made up of two distinct bottoms and a neckline, which, in this case, is at $0.2580.

Therefore, the ALGO token will likely resume the uptrend in the coming weeks as long as it is above the double-bottom point at $0.1447. A move below the double-bottom level will point to more downside, with the next level to watch being at $0.1065, its lowest level in August last year. 

Arbitrum price technical analysis

ARB price chart | Source: TradingView

Arbitrum, the second-largest layer-2 network in crypto after Base, has also remained under pressure this year, despite positive ecosystem news. 

In a statement on Monday, Robinhood announced that it would use Arbitrum’s technology to merge decentralized finance (DeFi) and traditional finance (TradFi).

Arbitrum will simply provide the chain needed to tokenize American stocks, a move that will lead to more users to the network. More data shows that Arbitrum’s stablecoin supply rose by 4.13% in June to $6.7 billion, while the number of transactions rose by 6.2% to 33.4 million. 

Stablecoin addresses in Arbitrum have jumped by 22% to 1.4 million, while the adjusted transaction volume rose by 37% to $46.7 billion. 

The daily chart shows that this good news have not boosted the Arbitrum price as its price has plunged by double digits. Like Algorand, it has formed a double-bottom pattern at $0.2490 and a neckline at $0.5050. 

A double bottom is one of the most bullish patterns in technical analysis. Therefore, the token will likely bounce back, and possibly hit the neckline at $0.5051.

Polygon price technical analysis

POL price chart | Source: TradingView

Polygon, the first layer-2 network in the crypto market, has plunged in the past few months, moving from a high of $0.7672 in December last year to the current $0.1820.

Like ALGO and Arbitrum, it has moved below the 50-day and 25-day moving averages, a sign that bears are in control. It is also slowly forming the double-bottom pattern at $0.1500 and a neckline at $0.2755. 

ALGO price remains below the 23.6% Fibonacci Retracement level. Therefore, the token will likely bounce back as long as it remains above the double-bottom point at $0.1500. A move below that support level will point to more downside.

The post Top crypto price predictions: Algorand, Arbitrum, Polygon appeared first on Invezz

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Business

Luckin Coffee stock rare pattern points to a surge after US expansion

Luckin Coffee stock price continues its strong uptrend as its growth momentum gains steam. LKNCY jumped to a high of $37.27 on Monday, its highest point since April 3, and 117% above its lowest level last year. It has also formed a highly bullish pattern, pointing to more gains.

Luckin Coffee stock rises after US expansion

Luckin Coffee, a popular coffee chain in China, continued its uptrend this week after expanding in the United States. It opened two locations in the United States, a move that will lead to more competition to Starbucks, its embattled rival. 

The company hopes to replicate its success in China in the United States, where it hopes to be a big player. Like in China, it will likely aim to compete in terms of pricing, a move that may impact Starbucks margins. For example, it is promoting a $1.99 drink deal on its applications. 

Luckin Coffee has been on a strong growth trajectory in recent years, expanding from a handful of locations to over 24,000 globally. It has already overtaken Starbucks in China, and is now eying global domination by launching in places like Malaysia and Singapore. Media reports suggest that Starbucks may be eying exiting China.

Some of the potential markets it could enter in the future are in South Korea, Japan, Canada, United Kingdom, and Turkey. Starbucks has over 1,870 locations in South Korea, 1,733 in Japan, 1,458 in Canada, and 1,266 in the UK. These could become good places for it to expand to. 

Read more: Luckin Coffee stock analysis: Is Cotti Coffee a big threat?

Growth to continue

The most recent results showed that Luckin Coffee’s business was growing rapidly. Its revenues jumped by 42% to RMB 8.9 billion, while its gross merchandise volume soared by 42% to RMB 10.4 billion. This growth happened as the average monthly transacting customers soared to over 74.3 million. 

Luckin Coffee’s growth is notable because Starbucks, its biggest competitor, is deteriorating and is implementing a turnaround effort. 

Its strong footprint is largely due to its franchise model, with self-operating stores accounting for 8.1%. Revenue from the self-operated stores was RMB 6.4 billion, a figure that has continued growing.

Wall Street analysts anticipate that Luckin Coffee’s business will continue growing in the coming years. The average estimate is that its revenue will grow by 32.6% this year to $6.26 billion, followed by $7.23 billion next year.

Luckin Coffee stock price analysis

Luckin Coffee stock chart | Source: TradingView

The daily chart shows that the Luckin Coffee share price has jumped in the past few months. This rally started after it bottomed at $17.27 on August 2.

It has formed a cup-and-handle pattern, and is now completing the formation of the handle section. This cup has a depth of about 55%, meaning that the stock has a target of $60. This target is estimated by measuring the same distance from the cup’s upper side.

A drop below the lower side of the handle section at $24 will invalidate the bullish Luckin Coffee stock price target.

The post Luckin Coffee stock rare pattern points to a surge after US expansion appeared first on Invezz

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Business

Top FTSE 100 Index shares to watch: Rolls-Royce, Lloyds, BT, Aviva

The FTSE 100 Index has rebounded in the past few months, moving from a low of £7,542 in April to £8,800 today, July 1. It has jumped by 16%, and is hovering near its all-time high. 

Footsie’s V-shaped recovery has mirrored that of other global indices like the S&P 500 and Nasdaq 100, which have jumped and reached their all-time highs in the past few months. 

This article highlights some of the top FTSE 100 Index shares to watch in the year’s second half.

Rolls-Royce Holdings (RR)

Rolls-Royce Holdings is one of the top FTSE 100 shares to watch in the year’s second half. It had a great first  half of the year as it jumped to a record high of 964p, up from 567p on January 1. This growth makes it one of the best-performing companies in the Footsie.

The stock will be in the spotlight due to its growing market share in key industries such as civil aviation, power, and defense. Its aviation business is doing well as airlines continue thriving and as demand for airline engines jump. 

The power division is benefiting from the ongoing demand for small modular reactors. Technology companies are also investing heavily in the data center. 

Rolls-Royce has also benefited from the recent conflicts that have pushed countries to boost their defense spending. For example, Donald Trump has called upon NATO members to boost their defense budget to at least 5% of the GDP. 

Lloyds Bank (LLOY)

Lloyds Bank, the biggest domestic banking group in the UK, has also done well this year so far. It jumped to a multi-year high of 76p, up from 52p in January and 30p in 2022.

Lloyds, like other European banks, has performed well due to ongoing dividend growth and total returns. Its dividend yield has increased to 3.95%, and the company continues to repurchase its stock. Its goal is to move its CET1 ratio from 13.5% today to 13% by the end of last year.

Lloyds Bank will be in the spotlight because of the upcoming actions of the Bank of England (BoE), which is expected to cut interest rates later this year.

The company will also be in the spotlight due to the motor insurance crisis being reviewed by the Supreme Court. This case revolves around the legality of commissions between car dealerships and lenders. Lloyds has already set aside over a billion pounds to deal with the crisis.

Read more: Top 3 reasons to buy Lloyds Bank shares

BT Group (BT.A)

BT Group is another FTSE 100 Index stock to watch this year after it jumped sharply lately. It jumped to nearly 200p, up by 101% from its lowest level in 2024. 

BT Group share price has jumped because of its strong financials and investments. The most recent results showed that its revenue dropped by about 2% last year to £20.5 billion. Its profit before tax rose by 12% to £1.3 billion, while the profit after tax rose by 23% to £1.05 billion.

Aviva (AV)

Aviva is another top FTSE 100 stock to watch after rising by over 32% this year. This growth makes it one of the best-performing companies in the UK this year.

Aviva’s business has done well because of the turnaround efforts by Amanda Blanc. She has exited key international markets, and put an emphasis on the domestic market. 

One of her biggest actions was to acquire Direct Line, a top insurance company in the UK. Therefore, Aviva will be in the spotlight as investors watch her turnaround efforts and whether they are generating substantial returns. 

The other top FTSE 100 Index companies to watch are St. James Place, NatWest, Barclays, and BAE Systems. 

The post Top FTSE 100 Index shares to watch: Rolls-Royce, Lloyds, BT, Aviva appeared first on Invezz

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Ethereum price prediction amid ETF inflows, whale accumulation

Ethereum price has moved sideways in the past two months, even as on-chain data sends bullish signals. ETH was trading at $2,450, up by 15% from its lowest level in March. This article explains why ETH price may be on the cusp of a bullish breakout. 

Ethereum ETF inflows are soaring

The first main bullish aspect for Ethereum is that investors are actively accumulating the coin. A good example of this is the ongoing exchange-traded funds (ETF) inflows. 

SoSoValue shows that these funds had inflows of over $283 million last week, a big increase from $40.2 million in the previous week. Its ETF inflows have jumped in the last eight consecutive weeks, a sign that investors are buying. 

This increase has brought the cumulative total to $4.21 billion and the total assets under management to $10.3 billion. BlackRock’s ETHA has over $4.4 billion in assets, while Fidelity’s FETH has $1.25 billion.

Ethereum stablecoin network is growing

Meanwhile, Ethereum’s stablecoin growth is continuing. Data shows that the stablecoin supply in Ethereum rose slightly in the last 30 days to $127 billion. This increase brought the number of stablecoin addresses to 2.5 million, up by 40% from the previous period. 

Ethereum’s stablecoins had over 17.6 million transactions, up by nearly 20% from the previous period. This growth brought the total adjusted transaction volume to $559 billion, up by 192% MoM.

This is a good performance because stablecoins have become the fastest-growing section in the crypto market. Tether (USDT) has the biggest market share in the network followed by USD Coin and Ethena’s USDe. 

ETH whales are accumulating

The other catalyst for Ethereum price is that whales have continued to accumulate the token. Santiment data shows that holders with between 10 million and 100 million coins now hold 63.98 million coins, a big increase from January’s 55 million. Similarly, those holding between 100k and 1 million coins hold 19.4 million coins, up from 17.1 million early last month. 

The same is true with whales holding between 10k and 100k tokens, who have continued to add into their positions. Whale accumulation is a sign that these investors anticipate the price to bounce back over time. 

Falling ETH balances on exchanges

More data reveals that the amount of ETH tokens on exchanges has been in a downward trajectory this year. There are now 7.7 million tokens in exchanges, down from 9.75 million in February. 

Falling exchange volume is a sign that investors are not selling their coins and are moving them to self-custody wallets. It is one of the most bullish signs in fundamental analysis. 

ETH balances and whale purchases | Source: Santiment

Ethereum price technical analysis

ETH price chart by TradingView

The daily chart suggests that the ETH price has bounced back in the past few months. It jumped from a low of $1,388 in April to a peak of $2,867 in May.

It is consolidating at the 50-day and 200-day Exponential Moving Averages (EMA), a sign that it may form a golden cross pattern. It has also formed a bullish flag pattern, a popular bullish reversal sign. 

Therefore, Ethereum price will likely continue rising as bulls target the key resistance level at $2,867, the highest point in May.  A break above that level will point to more gains, potentially to the resistance level at $3,000.

The post Ethereum price prediction amid ETF inflows, whale accumulation appeared first on Invezz

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Top 3 US stocks due for a comeback in the second half of 2025

A handful of US stocks remain in the red at the time of writing even though the benchmark S&P 500 index has recovered rather significantly over the past three months.

But continued weakness, at least in some of them, may mean opportunity for long-term investors heading into the second half of 2025.

Our list of such stocks that look strongly positioned for a comeback over the next 6 months include Fiserv, Salesforce, and Arista Networks. Let’s take a closer look at what each of these three have in store for investors moving forward.

Arista Networks Inc (NYSE: ANET)

Arista shares are currently down more than 20% versus their year-to-date high – but Wall Street analysts haven’t thrown in the towel on the computer networking and cloud company.

At the time of writing, nearly 80% of the analysts have a “buy” rating on ANET shares with the mean target about $111 indicating potential upside of some 13% from here, according to Barchart.

In his latest research note, a senior Morgan Stanley analyst, Meta Marshall, dubbed the bear case arguments as “overblown” currently, adding the setup actually looks “attractive” for the back half of 2025.

In early May, the NYSE listed firm reported record revenue and better-than-expected profit for its fiscal Q1, which makes up for another strong reason to have it in your portfolio.

Fiserv Inc (NYSE: FI)

Fiserv shares have been a disappointment for its shareholders since early March, but analysts are convinced the second half of this year will likely prove a different story for the financial technology firm.

Less than 15% of the analysts currently have a dovish stance on FI stock while the mean target of about $220 at writing indicates massive upside potential of well over 20% from current levels.

Last week, the fintech announced plans of introducing its own stablecoin and launching a digital-asset platform that makes Fiserv stock even more attractive to own for the second half of 2025.

In its latest reported quarter, FI earned $2.14 on a per-share basis, topping Street estimates of $2.08.

Salesforce Inc (NYSE: CRM)

A notable plunge (nearly 23%) in Salesforce stock since late January may represent an opportunity for long-term investors to load up on a quality name at a deep discount.

Among Wall Street analysts that currently cover CRM shares, close to 80% are constructive with the average price target of $356, indicating potential upside of some 30% from current levels.

The cloud-based software giant pays a dividend yield of 0.61% as well, which makes up for another reason to own it for the next 12 months.  

Last month, Salesforce reported its financial results for the first quarter that topped Street estimates for both top and the bottom line.

At the time, CRM announced $8 billion acquisition of Informatica as well to expand its footprint in AI.

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Asian markets open: Japan’s Nikkei falls 1.1%, Sensex poised for tepid start

Asia-Pacific stock markets showed a mixed performance at Tuesday’s open, with investors assessing the record-setting gains on Wall Street while simultaneously keeping a wary eye on the global impact of US President Donald Trump’s tariff policies.

With a 90-day tariff reprieve set to expire next week, the delicate state of international trade negotiations remains a key focus. Indian benchmarks, including the Sensex, are poised for a flat start.

The backdrop for Asian trading was a record close for two of the three key benchmarks on Wall Street in Monday’s session.

The broad-based S&P 500 index gained 0.52% to end at 6,204.95, while the Nasdaq Composite advanced 0.47% to also reach a fresh all-time high of 20,369.73.

The Dow Jones Industrial Average climbed 275.50 points, or 0.63%, to settle at 44,094.77.

However, US stock futures ticked down in early Asian hours, suggesting a slight pause in the upward momentum.

Monday’s rally in the US was partly fueled by Canada’s decision to rescind its digital service tax, a move aimed at facilitating trade negotiations with Washington.

This came after President Donald Trump had stated last Friday that the US was “terminating ALL discussions on Trade with Canada.”

Initial payments on the now-rescinded tax were set to begin Monday and would have applied to US tech giants like Google, Meta, and Amazon.

Despite these positive developments, the looming expiration of Trump’s 90-day tariff reprieve continues to create uncertainty.

US Treasury Secretary Scott Bessent said on Monday that there are “countries that are negotiating in good faith.”

However, he also issued a stern warning, adding that tariffs could still “spring back” to the levels announced on April 2 “if we can’t get across the line because they are being recalcitrant.”

Regional market performance: a divergent picture

This mix of positive momentum and underlying caution was reflected in Tuesday’s Asian trading. 

Japan’s Nikkei 225 benchmark fell 1.1% after hitting an over 11-month high in its previous session, with the broader Topix index declining by 0.82%.

In contrast, South Korea’s Kospi index rose a strong 1.71%, while the small-cap Kosdaq added 0.66%. Over in Australia, the S&P/ASX 200 increased by a modest 0.18%.

Mainland China’s CSI 300 started the day 0.16% lower, even as the country’s Caixin/S&P Global manufacturing purchasing manager’s index (PMI) for June came in at 50.4, higher than the 49 predicted by analysts polled by Reuters and indicating expansion.

Hong Kong markets were closed for a public holiday.

Japan’s manufacturing sector shows tentative growth

Delving deeper into the Japanese data, manufacturing activity in the country rose in June for the first time in 13 months, primarily on the back of higher output.

A private sector survey released on Tuesday showed the au Jibun Bank flash Japan Manufacturing Purchasing Managers’ Index rising to 50.4 in June.

This figure came in above the 50-point mark that separates growth from contraction for the first time since May 2024, and also surpassed the 49.4 reading seen in May.

However, underlying demand remained weak, as new orders and export sales continued to decline.

“The latest PMI data signalled that demand conditions remained challenging for Japanese manufacturers in June, with firms recording further drops in sales both at home and overseas,” Annabel Fiddes, economics associate director at S&P Global Market Intelligence, wrote in a Tuesday note.

“We will need to see a renewed and sustained improvement in customer demand, which remains dampened by ongoing uncertainty regarding US tariffs, in order to see a sustained recovery in production,” she added.

Indian markets poised for flat opening after profit booking

Indian stock market benchmark indices, the Sensex and Nifty 50, are likely to open flat on Tuesday, tracking the mixed cues from other global markets.

The trends on Gift Nifty also indicated a flattish start, with Gift Nifty trading around the 25,630 level, a premium of nearly 15 points from Nifty futures’ previous close.

This follows a session on Monday where the domestic equity market’s four-day gaining streak came to an end, with indices closing lower amid apparent profit booking.

The Sensex had dropped 452.44 points, or 0.54%, to close at 83,606.46, while the Nifty 50 settled 120.75 points, or 0.47%, lower at 25,517.05.

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Luckin Coffee stock rare pattern points to a surge after US expansion

Luckin Coffee stock price continues its strong uptrend as its growth momentum gains steam. LKNCY jumped to a high of $37.27 on Monday, its highest point since April 3, and 117% above its lowest level last year. It has also formed a highly bullish pattern, pointing to more gains.

Luckin Coffee stock rises after US expansion

Luckin Coffee, a popular coffee chain in China, continued its uptrend this week after expanding in the United States. It opened two locations in the United States, a move that will lead to more competition to Starbucks, its embattled rival. 

The company hopes to replicate its success in China in the United States, where it hopes to be a big player. Like in China, it will likely aim to compete in terms of pricing, a move that may impact Starbucks margins. For example, it is promoting a $1.99 drink deal on its applications. 

Luckin Coffee has been on a strong growth trajectory in recent years, expanding from a handful of locations to over 24,000 globally. It has already overtaken Starbucks in China, and is now eying global domination by launching in places like Malaysia and Singapore. Media reports suggest that Starbucks may be eying exiting China.

Some of the potential markets it could enter in the future are in South Korea, Japan, Canada, United Kingdom, and Turkey. Starbucks has over 1,870 locations in South Korea, 1,733 in Japan, 1,458 in Canada, and 1,266 in the UK. These could become good places for it to expand to. 

Read more: Luckin Coffee stock analysis: Is Cotti Coffee a big threat?

Growth to continue

The most recent results showed that Luckin Coffee’s business was growing rapidly. Its revenues jumped by 42% to RMB 8.9 billion, while its gross merchandise volume soared by 42% to RMB 10.4 billion. This growth happened as the average monthly transacting customers soared to over 74.3 million. 

Luckin Coffee’s growth is notable because Starbucks, its biggest competitor, is deteriorating and is implementing a turnaround effort. 

Its strong footprint is largely due to its franchise model, with self-operating stores accounting for 8.1%. Revenue from the self-operated stores was RMB 6.4 billion, a figure that has continued growing.

Wall Street analysts anticipate that Luckin Coffee’s business will continue growing in the coming years. The average estimate is that its revenue will grow by 32.6% this year to $6.26 billion, followed by $7.23 billion next year.

Luckin Coffee stock price analysis

Luckin Coffee stock chart | Source: TradingView

The daily chart shows that the Luckin Coffee share price has jumped in the past few months. This rally started after it bottomed at $17.27 on August 2.

It has formed a cup-and-handle pattern, and is now completing the formation of the handle section. This cup has a depth of about 55%, meaning that the stock has a target of $60. This target is estimated by measuring the same distance from the cup’s upper side.

A drop below the lower side of the handle section at $24 will invalidate the bullish Luckin Coffee stock price target.

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