Market Information Thursday 5 June 2025

China’s export restrictions on rare earths are disrupting European automobile production and raising fears of broader supply chain instability. Car makers like Mercedes-Benz and BMW are exploring stockpiles and alternatives to mitigate the threat, while EU leaders push for diversification. The move highlights China’s leverage in global trade tensions and its dominance in critical minerals vital to green and high-tech industries.

The U.S. has doubled tariffs on imported steel and aluminum to 50 percent, citing national security concerns and the protection of domestic producers. The move has drawn sharp criticism from key trading partners like Canada and Mexico, as well as from U.S. industries reliant on metal imports. While praised by American steelmakers, the tariffs risk raising consumer prices and disrupting international supply chains.

Private equity investors are increasingly turning to Europe’s defense sector as military spending rises and ESG norms shift. Interest is growing in areas like space technology, especially in Germany, where recent investment programs are boosting appeal. Despite this momentum, overall private equity dealmaking remains sluggish amid recession fears and tight liquidity.

The 6M Euribor increased with 1 basis point to 2.07% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.51% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.