Key Takeaways:
- Spot palladium prices have surged over 3 percent to $1,322.04 per ounce, driven by safe-haven demand amidst escalating trade tensions.
- German Chancellor Friedrich Merz anticipates the toughest EU budget negotiations in decades, rejecting the European Commission's proposed €2 trillion budget for 2028-2034 due to concerns over increased debt and corporate taxes.
- BofA Global Research has revised its Bank of England (BoE) rate cut forecast, now expecting two cuts this year in August and November, with a terminal rate of 3.5% by February 2026.
- Obamacare insurers are seeking double-digit premium hikes for next year, as reported by the Wall Street Journal.
- Japan's Prime Minister Ishiba and Chief Trade Negotiator Akazawa held friendly and vigorous talks with U.S. Treasury Secretary Bessent, expressing confidence in reaching a "good deal" on tariffs.
- Spot Palladium Prices Surge Amidst Trade Tensions: Spot palladium prices have seen a notable increase, climbing over 3 percent to $1,322.04 per ounce. This surge is attributed to safe-haven demand in response to escalating global trade tensions. The metal's price has risen 28.08% over the past month and 50.08% compared to last year.
- Germany Signals Tough EU Budget Negotiations: German Chancellor Friedrich Merz has stated that the upcoming EU budget negotiations will be the toughest in decades. Germany has rejected the European Commission's proposed €2 trillion EU budget for 2028-2034, citing concerns about increased debt and new corporate taxes. Merz emphasized that a "comprehensive increase in the EU budget is unacceptable" given member states' efforts to consolidate national budgets.
- Bank of England Rate Cut Outlook Revised: BofA Global Research has adjusted its forecast for the Bank of England's interest rate cuts. The firm now anticipates two rate cuts this year, occurring in August and November, rather than the previously expected August, September, and November cuts. The terminal rate is still projected to reach 3.5% by February 2026. This revision comes as the UK labor market is not weakening as significantly as initially thought, despite slowing pay growth.
- Obamacare Insurers Seek Double-Digit Premium Hikes: Major insurers under the Affordable Care Act (Obamacare) are reportedly seeking double-digit premium increases for the upcoming year. Companies like Centene (CNC) and Elevance Health (ELV) could be impacted by these proposed hikes. This development underscores ongoing concerns about the affordability of ACA plans.
- Japan and U.S. Express Optimism on Trade Deal: Japanese Prime Minister Ishiba and Chief Trade Negotiator Akazawa have concluded discussions with U.S. Treasury Secretary Bessent on a positive note. Both sides expressed confidence in achieving a "good deal" on tariffs, with the mood of the meeting described as "friendly." Akazawa indicated that tariff talks would continue vigorously.
- EU Construction Output Declines in May: EU construction output experienced a month-over-month decline of -1.7% in May, following a revised 1.7% increase in the previous month. Year-over-year, construction output fell by -2.9%. This indicates a contraction in the European construction sector.
- Russia Considers WhatsApp Restrictions, Promotes Domestic Messenger: A Russian politician has warned that WhatsApp is "very likely" to be added to a list of IT companies from "unfriendly countries" facing restrictions. This move comes as Russia promotes its new domestic messenger, "Max," which a Russian lawmaker claims could gain significant market share if WhatsApp exits. The new app is designed to integrate with state services.
- Nissan to Begin Formal Labor Union Communication Next Week: Nissan (7201.T) has announced that formal communication with its labor union is scheduled to commence next week. This follows the company's recent announcement regarding the cessation of vehicle production at its Oppama plant by the end of fiscal year 2027 and the transfer of production to Nissan Motor Kyushu.
- EU Approves "Strongest" Sanctions Package Against Russia: The European Union has approved its 18th sanctions package against Russia, with EU sanctions envoy O’Sullivan stating there is "no easing of sanctions" and that this package is "one of the strongest." The new measures include blacklisting two Chinese banks and a Russian-owned refinery in India, alongside a revised oil price cap.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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.