Global financial markets are reacting to a flurry of economic data and corporate announcements, alongside significant geopolitical developments. China's Foreign Ministry has expressed a willingness to engage in discussions with other countries to improve export control dialogues, particularly regarding rare earth elements. This comes as China's rare earth magnet exports saw a dramatic increase in June following a trade truce with the United States, with shipments to the U.S. alone soaring by 667%. This move could alleviate global supply chain pressures, especially for industries reliant on these critical materials.
In corporate news, Deutsche Bank (DB) delivered a strong performance in the second quarter, posting an after-tax profit of €1.73 billion, a substantial increase from €52 million a year prior. The German banking giant's net profit attributable to shareholders reached €1.485 billion, surpassing expectations and marking its highest Q2 profit since 2007. Group revenue also saw a 3% year-on-year rise to €7.80 billion, driven by strong showings in asset management and investment banking, with fixed-income and currency trading revenue up 11%. The bank reaffirmed its full-year guidance, with CEO Christian Sewing stating the results put them "on track to meet our 2025 targets."
Meanwhile, Airbus (AIR) secured a significant order from Avolon, a leading global aviation finance company, for 90 new aircraft. The order includes 75 A321neo and 15 A330neo aircraft, with deliveries scheduled through 2033. This substantial deal underscores continued confidence in the long-term demand for new aircraft within the aviation sector.
Economic indicators from Europe presented a mixed but generally improving picture. France's preliminary July Purchasing Managers' Index (PMI) data showed an uptick across key sectors. The Manufacturing PMI rose to 48.4 (forecast 48.5, previous 48.1), while the Services PMI increased to 49.7 (forecast 49.6, previous 49.6). Consequently, the Composite PMI also improved to 49.6 (forecast 49.1, previous 49.2). Although still below the 50-point expansion threshold, these figures suggest a moderation in the pace of contraction.
Spain also reported positive economic news, with its unemployment rate for the second quarter falling significantly to 10.29%, beating the forecast of 10.60% and down from 11.36% in the first quarter. This marks the lowest unemployment rate for Spain since the first quarter of 2008. Additionally, Spain's Producer Price Index (PPI) saw a year-on-year increase of 0.8% in June, up from 0.0% previously, and a month-on-month rise of 3.2%.
In the commodities sector, Australia's top iron ore port, Pilbara Ports, announced record export levels. The port authority achieved its sixth consecutive year of record throughput, handling 775.7 million tonnes of exports and imports in the 2024-25 financial year, valued at approximately $153 billion. Iron ore exports alone increased by 3% to 730.8 million tonnes for the period.
Broader market indices in Europe showed gains, with Britain's FTSE 100 Index (UKX) rising by 0.33% and Germany's DAX (DAX) increasing by 1.09%. Japan's Topix index (TPX) also set a new record high, buoyed by eased tariff fears following a trade deal with the United States.
In the automotive industry, Mitsubishi Motors ((/stock/7211)) noted intensifying sales competition as automakers globally attempt to compensate for a slowdown in U.S. sales by expanding into other markets. The company emphasized its strategy of not competing solely on price, focusing instead on brand heritage and after-sales support.
Geopolitical tensions continue to impact trade, with a Ukrainian official reporting a Russian overnight strike that targeted sea ports and transport links in Odesa, causing damage to key logistics facilities. This highlights the ongoing risks to global maritime trade routes.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.