Key Takeaways
- The European Union will slash tariff-free steel imports by 47% starting July 1, 2026, imposing a 50% out-of-quota duty on 26 product categories to combat global overcapacity.
- ArcelorMittal (MT) has launched the second tranche of its 2025-2030 share buyback program, targeting up to 10 million shares following the completion of its first €493 million tranche.
- German regional inflation cooled significantly in June, with major states like North Rhine-Westphalia and Baden-Württemberg reporting annual CPI drops to 2.1%, easing pressure on the ECB.
- Hyundai (HYMTF) issued a recall for over 96,000 SUVs (2025-2026 Tucson models) due to a software glitch that causes instrument panels to go blank while driving.
- Abivax (ABVX) shares surged 27% after reporting positive Phase 3 data for its ulcerative colitis drug, obefazimod, showing high remission rates in refractory patients.
EU Tightens Steel Borders to Counter Overcapacity
The European Union is set to implement a sweeping new regulatory framework for steel imports effective July 1, 2026. The measures replace previous safeguards and establish a strict 18.3 million tonne annual tariff-free quota, a 47% reduction from 2024 levels. Imports exceeding these limits will face a steep 50% duty, doubling the previous rate of 25%.
To prevent tariff circumvention, the EU will introduce rigorous "melt and pour" traceability rules starting October 1, 2026. These rules require importers to provide documentary evidence of the steel's original origin. The quota allocation is split, with half reserved for Free Trade Agreement (FTA) partners and the remainder available to all other trading nations.
ArcelorMittal (MT) Boosts Shareholder Returns
Steel giant ArcelorMittal (MT) announced the immediate commencement of the second tranche of its 2025-2030 share buyback program. This follows the successful completion of the first tranche, which saw the company repurchase 10 million shares at an average price of €49.32 per share.
The new tranche authorizes the buyback of an additional 10 million shares. This move aligns with the company’s policy to return at least 50% of post-dividend annual free cash flow to shareholders. ArcelorMittal (MT) intends to cancel the repurchased shares to reduce its total share capital.
European Inflation Eases as BOJ Signals Caution
Inflationary pressures in the Eurozone's largest economy showed signs of cooling as several German states released June CPI data. North Rhine-Westphalia and Baden-Württemberg both saw annual inflation drop to 2.1% (down from 2.4% in May), while Bavaria eased to 2.5%. Conversely, Italy’s preliminary May PPI rose to 7.3% year-on-year, indicating lingering wholesale price volatility.
In Japan, Bank of Japan (BOJ) board member Ayano Sato emphasized the need to balance downside risks to growth with upside risks to inflation. Sato noted that while a weak Yen boosts exports, it significantly pressures household income via higher import costs. Markets are closely watching for a potential rate hike in the July meeting as underlying inflation remains near the 2% target.
Corporate Briefs: Hyundai Recall and Abivax Breakthrough
Hyundai (HYMTF) is recalling approximately 96,310 Tucson SUVs from the 2025 and 2026 model years. The National Highway Traffic Safety Administration (NHTSA) warned that a software logic error could cause the instrument panel to reboot or go blank, depriving drivers of speed and fuel information. The company plans to fix the issue via a free software update or an over-the-air (OTA) transmission.
Biotech firm Abivax (ABVX) saw its stock price rocket 27% following positive topline results from its Phase 3 ABTECT maintenance trial. The study revealed that 37.2% of refractory ulcerative colitis patients achieved clinical remission using a 50mg dose of obefazimod. The company remains on track to submit a New Drug Application (NDA) to the U.S. FDA in Q4 2026.
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.