Date Issued – 14th May 2025
Preview
Coinbase’s 24% surge on S&P 500 inclusion marks a turning point for the crypto industry, signaling rising institutional acceptance amid easing regulatory pressures under the Trump administration. BYD overtakes Toyota as Singapore’s top car brand in 2025, reflecting the EV maker’s aggressive global expansion. Foxconn posts a 91% profit jump in Q1, driven by soaring AI server demand, while US soybean exports face a potential 20% decline without a China trade deal, highlighting ongoing trade risks. Nvidia sparks a tech rally as easing inflation and a US-China tariff truce lift Wall Street, with the S&P 500 erasing its 2025 losses. Bitcoin crosses $100,000, reinforcing optimism in digital assets, while BYD’s success underscores the EV market’s rapid growth in Southeast Asia. Investors are urged to monitor key earnings, trade negotiations, and AI-driven opportunities as markets remain sensitive to geopolitical and macroeconomic shifts.
Trade Truce Sparks Optimism Across Markets
US stock futures continued their upward momentum on Wednesday, buoyed by a 90-day tariff truce between the US and China and April’s cooler-than-expected inflation data. Futures on the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 rose 0.1%, 0.1%, and 0.2%, respectively, as easing trade tensions lifted sentiment. Nvidia led a tech rally on Wall Street, driving the S&P 500 to erase its year-to-date losses. In Asia, markets showed mixed openings but gained traction throughout the day. The Hang Seng Index surged 1.7%, and China’s CSI 300 advanced 1.1%, while Japan’s Nikkei 225 slipped 0.3%. Meanwhile, macroeconomic uncertainty weighed on corporate earnings, with American Eagle pulling its guidance and disappointing investors.
Investment Insight: The easing of US-China trade tensions and subdued inflation are potential tailwinds for equities, particularly in the tech sector, as seen in Nvidia’s rally. However, lingering macro risks, as highlighted by corporate guidance withdrawals, suggest a cautious approach. Investors should monitor upcoming earnings for signs of resilience and focus on sectors less exposed to global trade volatility.
US Soybean Exports Threatened by Trade Uncertainty
US soybean exports face a potential 20% decline in the absence of a US-China trade deal, according to AgResource. Exports could drop to 1.5 billion bushels, significantly below the USDA’s forecast of 1.865 billion, as Chinese tariffs—even reduced—keep US soybeans uncompetitive against Brazil’s record harvest. Farm gate prices may slide to $9.10 per bushel for 2025/26, compared to the USDA’s $10.25 forecast, pressuring US farm income. While a temporary tariff truce offers slight relief, Brazil’s dominance as China’s top soybean supplier, with ample supplies and lower prices, reinforces American farmers’ challenges in regaining market share.
Investment Insight: The ongoing US-China trade tensions underscore risks for US agricultural markets, with soybeans particularly vulnerable. Investors should monitor developments in trade negotiations and consider exposure to Brazil’s agricultural sector, which stands to benefit from China’s growing demand. Diversifying across commodities and geographies may offer a hedge against sustained trade uncertainty.
Foxconn’s Profit Soars Amid AI Server Demand
Foxconn, the world’s largest contract electronics manufacturer, reported a 91% year-on-year surge in first-quarter profit, driven by robust demand for AI servers. The company posted a net profit of T$42.12 billion ($1.4 billion), surpassing market expectations of T$37.8 billion and significantly outpacing the T$22.01 billion recorded a year earlier. As the leading assembler for Apple and a key supplier for Nvidia, Foxconn continues to benefit from the AI-driven expansion in server infrastructure.
Investment Insight: Foxconn’s stellar earnings highlight the accelerating demand for AI-related hardware, presenting opportunities in the broader AI supply chain. Investors may consider exposure to companies involved in AI server manufacturing and related components, as this sector remains a critical growth driver amid the ongoing tech transformation.
Market price: Hon Hai Precision Industry Co Ltd (TPE: 2317): TWD 163.00
BYD Surpasses Toyota in Singapore Vehicle Sales
China’s BYD has become Singapore’s top-selling vehicle brand in 2025, outselling Toyota for the first time, according to government data. BYD accounted for 20% of total vehicle sales in the first four months, delivering 3,002 units compared to Toyota’s 2,050 and Tesla’s 535. This milestone reflects BYD’s aggressive international strategy as it shifts focus to overseas markets amid intense price competition in China. Singapore, known for its high barriers to car ownership, highlights BYD’s growing appeal in affluent markets, with its Atto 3 SUV priced competitively against Toyota’s Corolla Altis.
Investment Insight: BYD’s rapid growth in international markets signals its potential to become a global leader in the EV space, challenging established automakers. Investors may find value in BYD’s expanding market share, particularly in Southeast Asia and beyond, as it aggressively pursues overseas sales. Monitoring its global expansion efforts, especially in Europe and Latin America, could offer insights into long-term growth opportunities.
Market price: BYD Ord Shs H (HKG: 1211): HKD 414.00
Coinbase Surges 24% on S&P 500 Inclusion and Crypto Revival
Coinbase (COIN) stock soared nearly 24% on Tuesday following its announcement as the first crypto exchange to join the S&P 500, signaling a pivotal moment for the crypto industry. The inclusion, effective May 19, underscores the sector’s growing legitimacy after regulatory hurdles eased under the Trump administration, including the SEC dropping enforcement actions earlier this year. Bitcoin’s rally past $100,000 further bolstered sentiment, reflecting renewed optimism in digital assets. Coinbase, with a 66% US market share and $320 billion in assets, has emerged as a key beneficiary of a more crypto-friendly regulatory environment.
Investment Insight: Coinbase’s S&P 500 inclusion highlights the normalization of crypto within traditional finance, positioning the company as a leader in the evolving digital asset space. Investors should watch for momentum driven by Bitcoin’s rally and policy tailwinds, while remaining mindful of volatility tied to broader market conditions. Coinbase’s dominant market position and growing institutional adoption make it a compelling choice for exposure to the crypto sector’s long-term growth.
Market price: Coinbase Global Inc (COIN): USD 256.90
Conclusion
The week’s developments underscore pivotal shifts across global markets. Coinbase’s S&P 500 inclusion highlights the growing integration of crypto into mainstream finance, while BYD’s dominance in Singapore signals the accelerating global adoption of EVs. Foxconn’s strong earnings reflect the transformative impact of AI on tech demand, even as trade uncertainties weigh on US agricultural exports. With Bitcoin surpassing $100,000 and easing inflation boosting investor sentiment, opportunities abound in AI, EVs, and digital assets. As geopolitical and economic landscapes evolve, staying attuned to emerging trends and policy shifts will be key for navigating the next phase of market growth.
Upcoming Dates to Watch
- May 14th, 2025: German CPI, Japan Foreign Bonds buying, South Korea Trade Balance
- May 15th, 2025: US GDP, UK GDP, Trade Balance; German WPI, Switzerland PPI, Europe Economic Forecast, Japan GDP
- May 16th, 2025: Japan Industrial Production, Hong Kong GDP
Find below some of our Buy/Sell Recommendations. Balfour Capital Group is a distinguished global boutique investment management firm with $350 million AUM and over 1000 Clients.
Disclaimer:Â This post provides financial insights for informational purposes only. It does not constitute financial advice or recommendations for investment decisions.
