—— Trump Convicted on 34 Counts; Trump May Add Volatility to Markets; Japan Spends $62 Billion to Prop Up Yen; TikTok Halts European E-Commerce Plans; Bill Ackman to Support Trump; Key U.S. Inflation Gauge Eases; Hang Seng Tech Index Enters Correction Territory
1. Trump Convicted on 34 Counts
After a five-week trial, former President Donald Trump was found guilty on all 34 counts related to falsifying business records, hush money payments, and concealing information from the 2016 election.
On Thursday, a Manhattan court publicly delivered the verdict, making Trump the first convicted felon to run for U.S. president. The impact on voters remains unclear, though some polls show support could decline if he’s found guilty.
However, many Republican leaders, business elites, and millions of Americans have rallied more firmly behind Trump.
Trump still faces three additional criminal trials, including one related to efforts to overturn the 2020 election.
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2. Trump May Add Volatility to Markets
Despite the verdict, U.S. equity and forex markets remained largely stable. Still, traders warn the outcome could complicate the 2024 election, potentially heightening market volatility over the next five months.
Yardeni Research founder Ed Yardeni noted that while markets often overlook domestic political turmoil, Thursday’s verdict could change the tone of the political climate.
Some experts believe markets had already priced in a guilty verdict, which is why major assets didn’t see sharp drops.
Trump’s conviction does not necessarily mean he will lose the election.
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3. Japan Spends $62 Billion to Prop Up Yen
Japan’s Ministry of Finance reported that it spent ¥9.8 trillion (approx. $62 billion) between April 26 and May 29 to intervene in currency markets and support the yen—exceeding the ¥9.2 trillion used in 2022.
The scale of the intervention shows Japan’s determination to combat speculators shorting the yen, though the effect has been limited and short-lived.
With wide interest rate gaps between Japan and the U.S., the yen remains under severe downward pressure.
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4. TikTok Halts European E-Commerce Plans
Sources say TikTok has paused plans to launch its TikTok Shop e-commerce platform in Spain, Germany, Italy, France, and Ireland—leaving many merchants surprised and frustrated.
ByteDance executives are focusing on the U.S. and China, TikTok’s most profitable markets. The U.S. alone has 170 million monthly users.
A TikTok spokesperson said TikTok Shop has had a strong impact and the company aims to grow total transaction volume to $17.5 billion this year.
Management believes expanding into Europe could face regulatory headwinds.
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5. Bill Ackman to Support Trump
Sources report that hedge fund billionaire Bill Ackman is leaning toward supporting Donald Trump, citing stronger opposition to President Biden than to Trump himself.
Last week, Blackstone founder Stephen Schwarzman also publicly backed Trump, calling for new leadership and citing rising antisemitism as a factor.
Ackman and Schwarzman reflect a broader Wall Street shift as many donors return to Trump, encouraged by his promises to cut taxes and ease regulation.
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6. Key U.S. Inflation Gauge Eases
The U.S. core PCE price index—excluding food and energy—rose 0.2% month-over-month in April, and 2.8% year-over-year, a slowdown from March and in line with the Fed’s target trajectory.
Real consumer spending dropped 0.1%, suggesting high rates are gradually cooling demand.
Following the data, Treasury yields fell while S&P 500 futures rose.
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7. Hang Seng Tech Index Enters Correction Territory
The Hang Seng Tech Index reversed gains and fell 1.7% today, now down 10% from its May 20 peak—meeting the technical threshold for a correction. Meituan and Tencent were the biggest drags.
Chinese tech stocks surged in April on optimism over earnings, cheap valuations, and policy support, but concerns over geopolitics and trade risks have triggered a pullback.
Investors are also worried about margin pressures from intensifying price wars among Chinese tech firms.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.