Weekly Market Review - 09-06-2025
- Anthony Walters
- Jun 9
- 3 min read
In this week’s Weekly Market Review, Anthony Walters, Head of ESG at Clever, recaps another positive week for equity markets, notable geopolitical developments, and a key ECB rate decision. We also spotlight Japan’s steel decarbonisation investment and what to expect from upcoming UK and US economic data.
Market Recap.
Markets enjoyed another strong week as the Nasdaq 100 ETF (+2.80%) continued to lead the way, as the US added more jobs than originally expected.
The other major markets performed similarly to last week, with both the S&P 500 ETF (+1.94%) and the Dow Jones Industrial Average ETF (+1.74%) making healthy gains. The FTSE 100 ETF (+0.82%) added upside in a more modest manner.
News.
U.S. President Donald Trump said on Friday that Chinese President Xi Jinping agreed to let rare earth minerals and magnets flow to the United States, a move that could lower tensions between the world's biggest economies.
Asked by a reporter aboard Air Force One whether Xi had agreed to do so, Trump replied: "Yes, he did." The Chinese embassy in Washington did not immediately respond to a request for comment.
Trump's comment came one day after a rare call with Xi aimed at resolving trade tensions that have been brewing over the topic for weeks.
Inflation.
The UK's statistics agency has said the headline inflation rate for April was too high after it discovered it had been given incorrect road tax data by the Department for Transport.
The Office for National Statistics (ONS) said the pace of general price rises should have been 3.4%, instead of the 3.5% it had reported.
Central Banks.
The European Central Bank (ECB) has cut interest rates by 25 basis points to 2.00% in a move widely expected by markets, with some investors now pricing one “extra cut” in 2025.
The Bank's Governing Council noted the recent decline in eurozone inflation and said that while it was currently at 1.90%, it forecast overall 2025 inflation to average out at its 2.00% target before falling to 1.60% in 2026.
Commodities.
Live Cattle futures rose by 4.51% last week pushed by tight supplies and with the border still closed to Mexican feeder imports due to New World Screwworm. Elsewhere, Ethanol fell by 3.58% as demand for Corn, the primary feedstock for U.S. ethanol, dropped.
ESG.
Japan’s Nippon Steel has announced plans to invest ¥870 billion (USD $6.05 billion) to transition from traditional blast furnace steelmaking processes to electric arc furnace (EAF) technology at three of its Japanese plants, in a move aimed at significantly reducing the carbon emissions of steel production. As opposed to burning coal, an EAF uses electric currents to create the heat needed to melt and mold metal. The shift to EAFs comes with high capital costs and increased expenditures for raw materials and electricity.
Steelmaking is one of the biggest emitters of CO2 globally, and one of the more challenging sectors to abate, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels.
Geopolitics.
U.S. President Trump and Chinese leader Xi Jinping spoke on Thursday at a time when stalled tariff negotiations between the two countries have roiled global trade.
The conversation was confirmed by the Chinese foreign ministry, which said Trump initiated the call. The White House did not immediately comment.
The call came as a US auto parts group urged immediate action on trade tariff issues: China's tighter controls on rare earth exports. The group warned the move could soon disrupt car production. China processes over 90% of these minerals, which are used in motors and cameras, among other things.
Week Ahead.
US: The focus will be on key inflation data. Headline CPI is expected to hold steady at 2.3%, its lowest level since February 2021. The Fed will be watching closely as it weighs its next steps.
UK: Attention turns to GDP and labour market data. The economy is expected to have contracted in April, with industrial and manufacturing output likely down for a second consecutive month.
Sources.
Anthony Walters - Head of ESG at Clever Adviser Technology Ltd (Clever)
Market recap Data sourced from FE FundInfo & Koyfin. ETFs quoted: iShares Core FTSE 100 UCITS ETF, iShares Core S&P 500 UCITS ETF, iShares Nasdaq 100 UCITS ETF (quoted in Pounds Sterling).
News Trump says China's Xi agreed to let rare earth minerals flow to US, By Trevor Hunnicutt, Yahoo Finance/Reuters, 06/06/2025
Inflation UK inflation number too high after data blunder, by BBC News, 05/06/2025
Central Banks Disinflation drives ECB rate cut but investors warn of limited space for further trims, By Sorin Dojan, Investment Week, 05/06/2025
ESG Nippon Steel to Invest $6 Billion to Decarbonize Steelmaking, by Emanuela Hawker, ESG Today, 06/06/25
Geopolitics Trump tariffs live updates: Trump and China's Xi Jinping speak at last with trade truce under strain, By Yahoo Finance, 05/06/2025
Commodities Koyfin & Trading Economics, 09/06/25
Week ahead Nathan Sweeney, Marlborough Group, 09/06/2025
