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June 10, 2025

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In Stocks

Europe markets open: FTSE 100 gains, Stoxx 600 flat; UK labor data, US-China talks eyed

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European stock markets started Tuesday’s session with a mixed and somewhat cautious tone, as investors kept a close watch on ongoing trade talks between the United States and China in London.

While major indices showed slight variations, a notable feature was the broad decline in European defense stocks, potentially linked to the discussions around critical mineral exports.

Meanwhile, fresh UK labor market data provided new insights into the country’s economic health.

Approximately ten minutes after the opening bell, the pan-European Stoxx 600 index was trading flat, indicating a general lack of strong directional conviction across the continent.

Looking at individual national markets, London’s FTSE 100 was up by a respectable 0.4%. In contrast, Germany’s DAX index was down by 0.2%, and France’s CAC 40 was last seen marginally higher.

A significant area of weakness this morning was the European defense sector. The regional Stoxx Aerospace and Defense index extended its recent losses, trading 0.8% lower.

This puts the index on track for its third consecutive day of declines. This downturn comes as investors monitor the US-China trade talks, which are set to continue in London on Tuesday.

A central point of these discussions revolves around critical minerals, on which China imposed export restrictions in April in response to US tariffs on Chinese exports.

These rare earth minerals are vital for the production of weaponry and other advanced defense technologies, making any developments in their trade a key concern for the sector.

Illustrating this pressure, shares in German defense giant Rheinmetall were last seen trading 3.4% lower.

Other German defense-related companies, Renk and Hensoldt, experienced even sharper falls, down 8% and 3.1%, respectively.

Currency and UK labor market: pound slips, job openings fall, wage growth cools

In currency markets, the British pound was down 0.5% against the US dollar on Tuesday morning, trading at around $1.35.

Despite this dip, sterling has still gained a notable 7.8% against the greenback so far this year.

New data from the UK’s Office for National Statistics (ONS) this morning provided a detailed snapshot of the labor market.

Job vacancies in the UK fell to 736,000 between March and May, a decline of 63,000 openings, or 7.9%, from the previous three-month period.

This marked the 35th consecutive decline in job openings, signaling a continued cooling in hiring demand.

Meanwhile, average earnings, including bonuses, saw a year-on-year increase of 5.3% for the period between February and April.

This indicates that while wage growth remains, it has steadily cooled since spiking to 6.1% in December.

Britain’s unemployment rate rose slightly to 4.6% in the three months to April, a figure that was in line with economist expectations.

In the previous three-month window to March, UK unemployment had stood at 4.5%.

The ONS data also showed that the UK’s economic inactivity rate—an estimate of those aged 16 to 64 who are out of work and either not seeking employment or unable to start work imminently—rose to 21.3% in the three months to April.

The post Europe markets open: FTSE 100 gains, Stoxx 600 flat; UK labor data, US-China talks eyed appeared first on Invezz

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In World news

China Eases Rare Earths Grip, Grants US, EU Auto Giants Fast Track Licenses

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China has moved to ease its export chokehold on rare earths, with its Ministry of Commerce announcing over the weekend that it will establish a “green channel” to fast track rare earths export licenses to select EU firms.

The announcement follows high-level trade talks in Paris between Chinese Minister of Commerce Wang Wentao and European Commission Vice President and Trade Commissioner Maroš Šefčovič, CNBC reported.

A ministry spokesperson stated that China hopes the EU will take “reciprocal steps” to promote “compliant trade of high-tech products with China.” The diplomatic overture also extends to US firms.

According to Reuters, China has quietly granted export licenses to suppliers working with American auto giants General Motors (NYSE:GM), Ford (NYSE:F) and Stellantis (NYSE:STLA) — manufacturer of Jeep, Dodge, Fiat and Peugeot.

The rare earth sreprieve could not come soon enough for the auto industry. Following China’s April imposition of export restrictions on several critical rare earth elements — used in everything from electric motors to fuel injectors — industry groups warned that stockpiles were dwindling rapidly, with risks of assembly line stoppages looming.

Jonathan O’Riordan, international trade director at the European Automobile Manufacturers’ Association (ACEA), told CNBC on Monday (June 9), “We’re gradually coming into a very, very critical moment whereby those stocks are now being exhausted, and we are potentially going to see production stoppages.” The ACEA had expressed alarm over licensing delays, saying applications had been taking a “significant” amount of time to process since the April restrictions came into force.

The European Association of Automotive Suppliers echoed the same concerns last week, reporting that several plants had already shut down due to Beijing’s export controls, with more disruptions anticipated in the coming weeks.

A global leverage game

The backdrop to this rare earths standoff is China’s overwhelming dominance in the critical minerals supply chain.

The country produces roughly 60 percent of the world’s rare earth elements and accounts for about 70 percent of US rare earths imports. These minerals — used in smartphones, wind turbines, and even military fighter jets — are increasingly seen as geopolitical assets in the global transition to clean energy and high-tech manufacturing.

The leverage is already being felt in the numbers. According to data released by China’s General Administration of Customs, the value of rare earths exports in May plummeted 48.3 percent year-on-year to US$18.7 million.

Export volumes fell to 5,864.6 metric tons, down 5.67 percent compared to the same month last year.

That decline ended three consecutive months of year-on-year growth and showed the real-world effects of China’s tightening export controls, which have remained in place even after Beijing agreed during talks with Washington last month to “suspend or remove” non-tariff countermeasures imposed since April 2.

Still, total rare earths exports for the first five months of 2025 were up 2.3 percent compared to the same period last year, suggesting that while value has plummeted, some shipments are still getting through under stricter oversight.

The Ministry of Commerce reiterated that it has approved export applications for qualified entities and expressed willingness to “communicate over export controls with relevant countries to facilitate compliant trade,” hinting at a more conciliatory approach ahead of another round of US-China trade negotiations.

Supply diversification still key

Despite the temporary relief, western automakers and their governments face a more fundamental challenge: diversifying away from China’s stranglehold on rare earths. Europe in particular has recognized the urgency. EU policymakers have pushed to accelerate domestic mining projects and build up strategic reserves.

But such efforts are years away from producing material results, leaving automakers vulnerable in the short term.

With that in mind, industry leaders are warning that without rapid progress on alternative supply chains, future geopolitical shocks could cause even greater disruption.

For now, China’s “green channel” offers a pause — but not a solution.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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In Politics

113 House Dems vote against GOP resolution to condemn Boulder attack on pro-Israel activists

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More than 100 Democrats voted against a House GOP-led resolution to condemn the accused terror attack in Boulder, Colorado.

It passed 280-113, with 75 Democrats joining Republicans to vote for the bill. Six lawmakers, five Democrats and one Republican, voted ‘present.’ 

The legislation was introduced by Rep. Gabe Evans, R-Colo., last week in response to the attack. But Democrat lawmakers made clear they were opposed to language in the resolution that they felt was politically charged.

In addition to condemning the attack, Evans’ resolution also appeared to rebuke blue-leaning sanctuary jurisdictions that were at odds with federal immigration authorities, and he condemned illegal immigrants who overstay their visas as well.

A second bill, led by Reps. Jeff Van Drew, R-N.J., and Joe Neguse, D-Colo., more broadly condemned the rise in antisemitic attacks in the U.S. That legislation netted much wider bipartisan support, passing 400-0, with just two lawmakers voting ‘present.’

But Evans’ resolution more specifically noted that the case of terror suspect Mohammed Sabry Soliman, who overstayed a tourist visa and a subsequent work authorization, ‘demonstrates the dangers of not removing from the country aliens who fail to comply with the terms of their visas.’

The Egyptian national is facing federal charges after allegedly attempting to set fire to peaceful demonstrators who were protesting Hamas’ continued possession of Israeli hostages in Gaza.

The Trump administration has vowed that he and his family will be deported from the U.S.

Evans’ resolution also ‘affirms that free and open communication between State and local law enforcement and their Federal counterparts remains the bedrock of public safety and is necessary in preventing terrorist attacks’ and it ‘expresses gratitude to law enforcement officers, including U.S. Immigration and Customs Enforcement personnel, for protecting the homeland.’

It comes as Democrat-controlled cities like Los Angeles and Nashville, Tennessee, have seen their leaders criticize the Trump administration’s ICE crackdown.

The Trump administration’s handling of anti-ICE riots in Los Angeles has spurred an outpouring of scorn from Democrat officials, particularly the decision to send National Guard troops in to break up the demonstrations.

House Minority Leader Hakeem Jeffries, D-N.Y., criticized Evans’ resolution in comments to reporters on Monday.

‘Who is this guy? He’s not seriously concerned with combating antisemitism in America. This is not a serious effort,’ Jeffries said. ‘Antisemitism is a scourge on America. It shouldn’t be weaponized politically.’

Jeffries also called Evans ‘a joke.’

Evans responded on X, ‘I served our nation in uniform in the Middle East, as a cop in Colorado, & now as a Congressman. This wildly offensive sentiment from Democrat’s Leader is why antisemitism persists. The Left is unserious about finding real solutions.’

Rep. Dan Goldman, D-N.Y., who is Jewish, also criticized Evans’ resolution.

‘You weren’t here, Mr. Evans, last term, but there were about 10 antisemitism resolutions that effectively said the same thing solely to score political points. We Jews are sick and tired of being used as pawns,’ Goldman said during debate on the bill.

But Van Drew, who is leading a bipartisan resolution that similarly condemns antisemitism but does not discuss immigration, defended Evans’ measure.

‘Yes, it is different than mine. Mine focused purely on antisemitism here in the world. But he brings up a valid point not only for Jews, but for many innocent victims. Whether it was Laken Riley, whether it was the women that were raped, the women and men that were killed, those that were beaten, those that were hurt, who were in law enforcement. Illegal immigration is not a good thing,’ Van Drew said.

The two lawmakers who voted ‘present’ on Van Drew’s resolution were Reps. Rashida Tlaib, D-Mich., and Marjorie Taylor Greene, R-Ga.

Greene wrote on X after the vote, ‘Antisemitic hate crimes are wrong, but so are all hate crimes. Yet Congress never votes on hate crimes committed against white people, Christians, men, the homeless, or countless others. Tonight, the House passed two more antisemitism-related resolutions, the 20th and 21st I’ve voted on since taking office. Meanwhile, Americans from every background are being murdered — even in the womb — and Congress stays silent.’

This post appeared first on FOX NEWS

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