{"id":64347,"date":"2026-07-07T02:08:19","date_gmt":"2026-07-07T06:08:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-smartphone-slump-rare-earth-expansion-and-geopolitical-shifts\/64347\/"},"modified":"2026-07-07T02:08:19","modified_gmt":"2026-07-07T06:08:19","slug":"global-markets-update-smartphone-slump-rare-earth-expansion-and-geopolitical-shifts","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-smartphone-slump-rare-earth-expansion-and-geopolitical-shifts\/64347\/","title":{"rendered":"Global Markets Update: Smartphone Slump, Rare Earth Expansion, and Geopolitical Shifts"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>China\u2019s smartphone sales plunged 13%<\/strong> during the critical 618 shopping festival as rising <strong>memory chip costs<\/strong> forced vendors to scale back discounts.<\/li>\n<li><strong>Lynas Rare Earths (<a href=\"\/stock\/LYC\">LYC<\/a>)<\/strong> signed a <strong>A$50 million (US$34.8 million)<\/strong> deal with South Korea&#39;s <strong>JS Link (<a href=\"\/stock\/127120\">127120<\/a>)<\/strong> to build a permanent magnet plant in Malaysia, targeting the EV and wind energy sectors.<\/li>\n<li><strong>Finnish President Alexander Stubb<\/strong> confirmed NATO\u2019s support for Ukrainian strikes deep into Russian territory, signaling a strategic shift to pressure Moscow toward negotiations.<\/li>\n<li><strong>Pakistan<\/strong> is granting foreign-owned banks voluntary status in its transition to a <strong>Riba-free (Islamic) financial system<\/strong>, aiming for a full shift by 2028 while maintaining global capital ties.<\/li>\n<\/ul>\n<hr>\n<h2>Consumer Electronics: Memory Costs Stifle China\u2019s 618 Festival<\/h2>\n<p>Smartphone sales in China fell <strong>13% year-on-year<\/strong> during the month-long <strong>618 shopping festival<\/strong> (May 26 \u2013 June 21), according to data from <strong>Counterpoint Research<\/strong>. The decline is primarily attributed to a sharp rise in <strong>memory component prices<\/strong>, which limited the ability of major brands to offer aggressive discounts.<\/p>\n<p><em>Industry analysts note that LPDDR4\/5 memory prices are on track to treble relative to late 2025 levels.<\/em> This &quot;memory crisis&quot; is disproportionately affecting <strong>low-end Android players<\/strong>, while premium manufacturers like <strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> and <strong>Samsung (<a href=\"\/stock\/SMSN\">SMSN<\/a>)<\/strong> remain more resilient. Average selling prices are projected to rise <strong>14%<\/strong> globally in 2026 as vendors pass these costs to consumers.<\/p>\n<h2>Rare Earths: Lynas and JS Link Partner for Malaysian Magnet Plant<\/h2>\n<p>Australian rare earths producer <strong>Lynas Rare Earths (<a href=\"\/stock\/LYC\">LYC<\/a>)<\/strong> has finalized a long-term partnership with South Korea\u2019s <strong>JS Link (<a href=\"\/stock\/127120\">127120<\/a>)<\/strong>. The deal involves a <strong>A$50 million<\/strong> equity investment by Lynas to establish a permanent magnet factory in <strong>Kuantan, Malaysia<\/strong>, with a planned capacity of <strong>3,000 tonnes per annum<\/strong>.<\/p>\n<p>The facility will produce <strong>neodymium-iron-boron (NdFeB)<\/strong> magnets, essential for electric vehicles, wind turbines, and electronics. This move strengthens the &quot;outside-China&quot; supply chain, as <strong>Lynas<\/strong> currently provides roughly <strong>10%<\/strong> of the world\u2019s rare earth materials. The agreement includes an exclusive supply arrangement for raw materials through <strong>January 2038<\/strong>.<\/p>\n<h2>Geopolitics: NATO Backs Ukraine\u2019s Deep-Strike Strategy<\/h2>\n<p>In an interview with the <em>Financial Times<\/em>, Finnish President <strong>Alexander Stubb<\/strong> stated that NATO leaders now broadly support Ukraine\u2019s intensified strikes on infrastructure deep within Russia. Stubb argued that these operations have changed <strong>U.S. strategic thinking<\/strong> and placed Kyiv in its strongest negotiating position since the war began in 2022.<\/p>\n<p>The Finnish leader emphasized that moving the conflict into Russian territory is intended to shift <strong>Russian public opinion<\/strong> and &quot;compel&quot; the Kremlin to return to the bargaining table. While some allies initially feared nuclear escalation, Stubb noted that recent diplomatic signals, including those from <strong>China<\/strong>, have helped mitigate these concerns.<\/p>\n<h2>Emerging Markets: Pakistan\u2019s Shift to Islamic Finance<\/h2>\n<p>The Pakistani government has unveiled a roadmap to eliminate <strong>Riba (interest)<\/strong> from its financial system by <strong>January 1, 2028<\/strong>. Under the new strategy, most <strong>foreign-owned banks<\/strong> will be allowed to choose whether to transition to fully Islamic models or continue hybrid operations.<\/p>\n<p>This voluntary status for foreign entities is a strategic move to preserve <strong>legal certainty<\/strong> and protect <strong>investor confidence<\/strong> amid deep integration with global capital markets. As of late 2025, Islamic banking already accounted for <strong>28% of total deposits<\/strong> in Pakistan, with total industry assets reaching <strong>Rs14.47 trillion<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s smartphone sales plunged 13% during the critical 618 shopping festival as rising memory chip costs forced vendors 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