EBC Markets Briefing | Yuan shows resilience; Stellantis shares popped

The Chinese yuan hovered around its 3-year high on Thursday on a report that ‌the US had carried out new strikes in Iran targeting a military site. Trump said earlier he was "not satisfied" on a deal with Iran.

China's industrial profits surged by 24.7% in April from a year earlier, the fastest growth since November 2023, despite broader signs of slowing economic momentum.

Beijing's efforts to address excessive competition are starting to bear fruit, EU Chamber of Commerce of China President Jens Eskelund said, citing a survey of members earlier in the year.

Surprisingly, more European companies are maintaining or expanding their supply chains in China to remain competitive amid trade tensions, according to a survey released Wednesday by the agency.

About three-fourths of the companies said their production facilities in the country were more efficient than operations elsewhere. China accounts for about 28% of goods manufactured globally.

While affordable labor historically fueled the country's manufacturing dominance, an aging workforce and rising labor shortages have triggered a massive wave of factory automation.

After a jump above a key psychological region, the yuan entered a consolidation phase. The short-term risk is skewed towards downside, with the initial support seen at 6.7890 per dollar.

Asset recap

As of market close on 27 May, among EBC major products, Stellantis shares led gains. Macron announced that the company will invest more than one billion euros in the production of a new generation of EV.

Boston Scientific shares sank to their lowest in over two years, after the medical device maker warned it was facing pressure due ​to softer uptake of its heart disease device.

Gold fell to its lowest in two months as risks of prolonged inflation from the Middle East war continue to pile pressure onto the metal. However, the outlook remains bright longer term.

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