Key Takeaways
- Israel has announced a daily "tactical pause" in military activities in specific areas of Gaza from 10 a.m. to 8 p.m. local time to facilitate humanitarian aid, even as two Israeli soldiers were killed in the southern Gaza Strip.
- Union Pacific (UP) is reportedly close to a deal to acquire Norfolk Southern (NSC), which would create the largest railroad in North America and the first transcontinental rail operator.
- China's industrial profits continued to decline in June, falling 4.3% year-on-year, reflecting persistent producer deflation and subdued domestic demand, though the manufacturing sector saw a slight improvement.
- U.S. first-time home buyers have dropped to a record low due to high mortgage rates, soaring home prices, and limited inventory, indicating a challenging housing market.
- Russia accuses Kyiv and the West of blocking a diplomatic solution to the Ukraine war, stating its preference for political and diplomatic means to resolve the conflict.
Global geopolitical tensions remain high, with significant developments in the Middle East and Eastern Europe, while major economic shifts are underway in the U.S. and China.
Middle East Conflict and Diplomatic Efforts
The Israeli army has declared a daily "tactical pause" in military operations in designated areas of Gaza, including Al Mawasi, Deir al Balah, and Gaza City, from 10 a.m. to 8 p.m. local time. This pause, which began Sunday and will continue daily, aims to open aid corridors for delivering essential supplies and address the worsening humanitarian crisis. This decision comes amid increasing international pressure due to concerns about malnutrition in Gaza.
Despite these humanitarian efforts, two Israeli soldiers, Captain Amir Saad (22) and Sergeant Inon Nuriel Vana (20), were killed in the southern Gaza Strip on Saturday evening when their armored personnel carrier was hit by an explosive device in Khan Younis. Hamas has claimed responsibility for the attack. U.S. Senator Marco Rubio expressed optimism about reaching a ceasefire agreement in the Gaza Strip, hoping for positive news soon. Meanwhile, a French official indicated that Arab nations are expected to condemn Hamas in a push for Palestinian statehood recognition.
Economic Developments and Trade Relations
In the United States, the housing market is facing significant headwinds as the share of first-time home buyers has plummeted to an all-time low. This decline is attributed to the combined pressures of high mortgage rates, soaring home prices, and limited inventory.
On the corporate front, Union Pacific (UP) is reportedly nearing a deal to acquire Norfolk Southern (NSC), according to Bloomberg. This potential acquisition would create the largest railroad in North America, establishing the first modern West-to-East single-line freight railroad and potentially transforming the transportation of goods across the country. Regulatory approval from the Surface Transportation Board (STB) would be required for such a merger.
China's industrial sector continues to grapple with economic challenges. Profits at major industrial firms in China fell by 4.3% year-on-year in June, following a 9.1% decline in May. For the first half of 2025, overall industrial profits were down 1.8%. This persistent decline is largely due to entrenched producer deflation and subdued domestic demand. However, the manufacturing sector showed a slight improvement, with profits reversing from a 4.1% decline in May to a 1.4% increase in June. The equipment manufacturing sector, in particular, saw strong growth, with profits jumping 9.6%. China has also unveiled a strategy to increase domestic demand for agricultural goods.
Trade relations remain a key focus. The Wall Street Journal reported that the U.S. is increasingly recognizing China’s dominance over rare-earth minerals as a potential tool for geopolitical coercion, a situation Japan experienced 15 years ago. In other trade news, U.S. President Donald Trump and European Commission President Ursula von der Leyen are scheduled to meet on Sunday to finalize a trade agreement and prevent a potential trade dispute. Trump has indicated a "50-50 chance" of reaching a deal, which could see a 15% baseline tariff on most EU goods, aiming to end months of uncertainty for EU companies. Australia's Prime Minister Anthony Albanese denied that the easing of U.S. beef import restrictions was influenced by President Trump, stating it was part of a long-term review process.
Geopolitical Standoffs
The conflict in Ukraine continues to see diplomatic stagnation. Russia has accused Kyiv and Western nations of rejecting a political and diplomatic path to resolve the conflict, with Kremlin spokesman Dmitry Peskov stating that Russia prefers diplomatic means but Kyiv and the West have refused this approach. This comes after a Ukrainian drone strike reportedly disrupted the railway power supply in Volgograd, Russia.
Adding to global tensions, North Korean leader Kim Jong-un pledged victory in the "anti-U.S. struggle" on the anniversary of the Korean War armistice, reiterating his commitment to building a strong military.
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.