Morning Bites

💍Hong Kong jewellery and watch sales grew 20% YoY in June, vs. the 26% YoY gain in May, per government data. According to Rapaport, local sales growth was supported by the ongoing economic expansion, rising local incomes and a steady increase in inbound tourism (the number of Mainland visitors was up 16% YoY in 1H26), as well as stronger consumer confidence

However, we maintain our cautious view on the prospects for a global diamond market recovery in 2026. Risks to supply discipline remain, as Anglo American's planned sale or spinoff of De Beers undermines market participants' confidence in the price-over-volume strategy. Meanwhile, geopolitical concerns keep weighing on consumer sentiment

#diamonds