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The U.S. dollar stabilized on Thursday as investors weighed the impact of political uncertainty in Europe and Japan against the backdrop of an ongoing U.S. federal government shutdown.

In Europe, attention shifted away from discussions over proposed EU steel import tariffs and back to the deepening political crisis in France. French President Emmanuel Macron’s office confirmed on Wednesday that he will appoint a new prime minister within 48 hours following the resignation of Premier Sebastien Lecornu earlier this week. Lecornu’s abrupt departure — coming just hours after announcing his cabinet — has thrown the country into renewed political turmoil.

Although the upheaval has prompted speculation about the possibility of a snap parliamentary election, Macron’s office has made clear that most lawmakers oppose such a move.

“It’s a domestic political and, probably soon, an economic crisis. Direct contagion to other eurozone countries looks unlikely. Indirect contagion, however, is possible,” analysts at ING said.

The euro came under pressure amid the uncertainty, slipping 0.1% to $1.1622. The currency has lost around 0.8% over the past week and on Wednesday touched its lowest level since late August.

In Japan, markets continued to react to Sanae Takaichi’s victory in the leadership race for the ruling Liberal Democratic Party. Investors are increasingly expecting that she will support greater fiscal spending and looser monetary policy. This, combined with weaker expectations for further rate hikes by the Bank of Japan, has weighed on the yen.

“The recalibration of market expectations around a slower pace of Bank of Japan rate hikes continues to exert downward pressure on the yen, with spillover effects weighing on regional currencies,” MUFG analysts said in a note.

The yen was last trading at 152.67 per dollar, hovering near levels last seen in February. It has weakened more than 3.6% against the greenback so far this week.

Supported by softness in both the euro and yen, the U.S. dollar index was steady at 98.94 by 05:28 ET (09:28 GMT), after hitting a two-year high earlier in the session.

Investors were also watching the now week-long U.S. government shutdown, which has delayed the release of key economic data likely to influence the Federal Reserve’s policy path through the rest of 2025.

Minutes from the Federal Open Market Committee’s September meeting revealed that officials were split on the appropriate pace of rate adjustments, with debate centering on how to balance slowing labor market momentum against persistent inflation. While lower interest rates can boost hiring and investment, they also risk reigniting inflationary pressures.

Most policymakers “judged that it likely would be appropriate to ease policy further over the remainder” of this year, though the timing and scale of any cuts remain uncertain, the minutes said.

In a note, analysts at Capital Economics said the minutes showed that most FOMC participants favored lowering rates to a more “neutral setting,” a level that neither supports nor restricts economic growth, due to persistent “downside risks” to employment.

“Nonetheless, with ‘a majority of participants’ still emphasising the ‘upside risks to their outlooks for inflation,’ we remain comfortable with our view that the FOMC will proceed at a slower pace than market pricing suggests,” the analysts said.

Market expectations for a 25-basis-point rate cut at the Fed’s upcoming meeting later this month remained unchanged after the release of the minutes.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

London, UK, Rainbow Rare Earths (LSE:RBW) has released an updated interim economic study for its flagship Phalaborwa Rare Earths Project in South Africa, revealing a base case NPV10 of USD $611 million. The study highlights significant technical progress and downstream potential, positioning the company as a leading player in the emerging circular rare earth economy.

Optimization Unlocks Greater Value

Speaking on The Watchlist with Ricki Lee, CEO George Bennett shared that recent technical advances have strengthened the project’s economics. “We’ve been able to produce a very high-quality mixed rare earth product that is extremely low in impurities,” Bennett explained. “This not only enhances the feed for our downstream separation circuit but also reduces overall costs.”

The company is currently conducting optimization work on the figures released in December 2024. Bennett said the upcoming results are expected to “greatly improve both the NPV and operating costs,” further boosting project returns and investor confidence.

A Low-Cost, Low-Impact Model

Bennett emphasized that Phalaborwa is not a traditional mining operation, but a chemical processing project that extracts rare earth elements from phosphogypsum waste.
“These gypsum stacks are already chemically cracked,” he noted. “That means 60% of our process has effectively occurred at zero cost. We avoid the usual mining, crushing, and cracking expenses, giving us one of the lowest-cost flow sheets in the industry.”

This innovative approach allows Rainbow to minimize environmental impact while maximizing resource recovery, an increasingly important advantage as global industries transition to sustainable supply chains.

Targeting the Growing Demand for Critical Minerals

Rainbow Rare Earths’ output will include neodymium-praseodymium (NdPr) and SEG+, which contains key heavy rare earths such as dysprosium and terbium. These elements are essential for electric vehicles (EVs), wind turbines, and defence technologies, as well as emerging markets in robotics and advanced air mobility.

Bennett said global demand is rapidly expanding beyond EVs:

“The industry is forecasting that robotics and air mobility will soon outpace even EV demand. This will put tremendous strain on supply chains seeking independent sources of these materials outside China.”

Rainbow has already attracted attention from multiple original equipment manufacturers (OEMs) and offtake partners interested in securing long-term supplies. Production from Phalaborwa is targeted for 2028, which Bennett described as “near-term” for a project of this scale.

Global Expansion: Brazil, Canada, and Europe

Beyond South Africa, Rainbow is advancing international expansion. The company has signed a memorandum of understanding with Mosaic, the global fertilizer producer listed on the NYSE, to recover rare earths from phosphogypsum waste at Mosaic’s operations in Brazil.

An initial economic assessment (IEA) for this Kuberaba project is already underway, with results expected before the end of this year. Bennett described it as “higher grade and longer life than Phalaborwa,” and expects the study to deliver “a very positive outcome.”

Additionally, Rainbow is in active discussions for two new opportunities, one in Canada and another in Europe, aimed at replicating its low-cost, sustainable recovery model.

Outlook

With multiple projects advancing and optimization work underway, Rainbow Rare Earths is positioning itself at the forefront of sustainable rare earth supply outside China. The company’s model, extracting high-value materials from industrial waste, offers a blueprint for a circular, low-carbon approach to critical mineral production.

For more information, visit rainbowrareearths.com.

Disclaimer:

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices edged lower in Asian trading on Thursday, retreating slightly from record highs as news of a ceasefire between Hamas and Israel dampened safe-haven demand. Despite the pullback, the precious metal remained firmly above the key $4,000 per ounce level.

Sentiment toward gold stayed supported by ongoing concerns over Japan’s fiscal position, the prolonged U.S. government shutdown, and political instability in France. A dovish tone in the minutes of the Federal Reserve’s September meeting also kept investors optimistic about more interest rate cuts, providing additional support to bullion.

By 01:30 ET (05:30 GMT), spot gold slipped 0.1% to $4,039.34 per ounce, while December futures were down 0.3% at $4,056.67. Earlier in the session, spot prices hit a new all-time high of $4,059.34 after breaching $4,000 for the first time.

Gaza ceasefire sparks profit-taking

The modest decline followed reports that Israel and Hamas had agreed to the first phase of a U.S.-brokered ceasefire deal. The agreement, reached through indirect talks in Egypt, comes just days after the second anniversary of Hamas’ cross-border attack that triggered the current conflict.

Under the 20-point framework proposed by U.S. President Donald Trump, the plan includes a full Israeli withdrawal from Gaza and a roadmap toward eventual Palestinian governance. If fully implemented, it would mark the most significant step toward peace in years.

News of the ceasefire pressured oil prices while boosting risk-sensitive assets, reducing some of gold’s safe-haven appeal.

Metals hold firm on Fed rate cut expectations

Broader metals markets were mixed but continued to trade near multi-year highs, supported by expectations that the Federal Reserve will cut interest rates in October.

Spot platinum was little changed at $1,660.98 an ounce after hitting its highest levels in over a decade earlier in the week. Silver climbed 0.5% to $49.11, nearing the $50 mark, with additional momentum coming from HSBC’s upgraded price forecast and its projection of a record high in the near term.

According to CME FedWatch data, traders are pricing in nearly a 100% probability of a 25-basis-point cut at the Fed’s next meeting. Lower interest rates generally enhance the appeal of non-yielding assets such as precious metals.

Attention later in the day will turn to a speech by Federal Reserve Chair Jerome Powell, which could offer more signals on the central bank’s next policy steps.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil prices held steady on Thursday as traders balanced news of a ceasefire agreement in Gaza — which could ease Middle East tensions — against the lack of progress in peace negotiations between Ukraine and Russia, which may keep sanctions in place and limit Russian exports.

By 06:29 GMT, Brent crude futures had inched up 2 cents to $66.27 a barrel, while U.S. West Texas Intermediate crude slipped 1 cent to $62.54.

U.S. President Donald Trump said that a long-sought ceasefire and hostage-release agreement for Gaza had been reached as part of a broader plan to end the two-year conflict in the Palestinian enclave. Israeli Prime Minister Benjamin Netanyahu announced he would convene his cabinet to approve the deal, with the signing expected at noon Israel time (0900 GMT) on Thursday.

“The devil is always in the details, and I would avoid speculating right now due to the many false starts that we have witnessed in the past,” said Claudio Galimberti, chief economist at Rystad Energy.

The war in Gaza has been a key factor underpinning oil prices, as markets assess the potential threat to global supply if the conflict spreads further in the region.

Michael McCarthy, CEO of investor platform Moomoo Australia and New Zealand, said the ceasefire is unlikely to have a major impact on Middle Eastern supply, noting that OPEC+ “has not hit its increased production targets.” The group, consisting of OPEC and its allies, agreed on Sunday to a smaller-than-expected output hike for November, easing fears of oversupply.

Prices had risen about 1% on Wednesday to their highest in a week after investors interpreted the stalled Ukraine peace talks as a sign that sanctions on Russia, the world’s second-largest oil exporter, would likely remain in place for the foreseeable future.

“As long as the war in Ukraine continues, the geopolitical risk premium is destined to remain elevated, as Russia’s oil production at risk remains high,” Galimberti said.

Meanwhile, total weekly U.S. petroleum products supplied — a key gauge of domestic consumption — climbed to 21.99 million barrels per day last week, the highest since December 2022, according to the Energy Information Administration.

Analysts at JP Morgan noted that global oil demand started October on a softer footing. Indicators including container traffic at the Port of Los Angeles, truck mileage in Germany and container throughput in China pointed to moderating activity. They estimated global oil demand at 105.9 million bpd in the first week of October, up 300,000 bpd year-on-year but 90,000 bpd below their projections.

The pace of global crude and product inventory builds has also slowed, rising by 8 million barrels last week — the smallest increase in five weeks, they added.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. equity futures were little changed on Thursday morning as investors weighed the ongoing enthusiasm for artificial intelligence and closely examined the minutes from the latest Federal Reserve policy meeting. The central bank remained divided on the path of interest rates through the rest of 2025, balancing the cooling labor market against persistent inflationary pressures.

Meanwhile, quarterly earnings from Delta Air Lines (NYSE:DAL) and PepsiCo (NASDAQ:PEP) are on deck, and gold is retreating slightly following a record-setting rally.

Futures Trade Flat

U.S. stock futures were largely directionless early Thursday as investors sifted through the Fed minutes and assessed an AI-fueled tech rally from the prior session.

By 03:12 ET, futures on the Dow Jones Industrial Average and S&P 500 were little changed, while Nasdaq 100 futures edged up 16 points, or 0.1%. Both the S&P 500 and tech-heavy Nasdaq had set fresh closing records on Wednesday, powered by mega-cap AI leaders that have driven much of this year’s market gains.

While some investors are wary of “the perceived circular nature of many recent AI-related deals,” the surge of interest around the technology has shown few signs of slowing. Meanwhile, a prolonged political stalemate in Washington continues to keep many federal offices shut, raising the risk of delays in key U.S. economic data releases.

With the AI boom ongoing and little fresh macroeconomic data to guide trading, analysts noted that markets may remain subdued ahead of next week’s third-quarter earnings season kickoff.

Fed Meeting Minutes Show Division

The release of the minutes from the September meeting of the Federal Open Market Committee (FOMC), where the Fed delivered a 25 basis point rate cut, offered fresh insight into policymakers’ thinking. The document showed deep divisions over how aggressively to cut rates as officials weighed “a slowing labor market and sticky inflationary pressures.”

Most officials “judged that it likely would be appropriate to ease policy further over the remainder” of 2025, although there was no consensus on when or by how much further cuts should come.

In a client note, analysts at Capital Economics observed that the minutes reinforced the view that most policymakers want rates to return to a more “neutral setting” given persistent “downside risks” to employment.

“Nonetheless, with ‘a majority of participants’ still emphasising the ‘upside risks to their outlooks for inflation,’ we remain comfortable with our view that the FOMC will proceed at a slower pace than market pricing suggests,” the analysts said.

Market expectations for another 25 basis point cut at the upcoming Fed meeting remained intact after the release.

Delta Earnings in Focus

Although the bulk of earnings season starts next week, Delta’s report will give early insight into the travel sector’s health. The airline will publish its results before the opening bell, just weeks after reiterating its full-year and current-quarter guidance.

Delta recently raised the lower end of its revenue forecast for Q3, now expecting a top-line increase of 2% to 4%, up from the previous range of 0% to 4%.

The upgrade reflects an improving outlook for U.S. travel after a rough start to the year that included policy turbulence from Donald Trump’s import tariffs. Heavy discounts spurred demand for summer travel, and airline executives have expressed confidence that resilience in the sector may allow for airfare increases later in the year.

PepsiCo Results and Elliott Pressure

PepsiCo is also set to report earnings before the market opens. Analysts are closely watching for any developments linked to activist investor Elliott Investment Management, which disclosed a $4 billion stake in September and urged the company to streamline operations.

Elliott has suggested that Pepsi shed brands like Quaker and consider spinning off its bottling arm to “slash costs and bolster margins.” The hedge fund argues these moves could sharpen the company’s focus on core products like chips and sodas.

While discussions are ongoing, some investors are skeptical that spinning off the bottling business would be fast or margin-accretive. Shares of PepsiCo, the maker of Mountain Dew and Lay’s chips, have fallen more than 7% this year.

“[S]entiment has improved somewhat with the presence of Elliott and the expectation of some type of strategic action to bolster shareholder value, but the whole staples space is facing cyclical and secular headwinds and management is likely to pushback against some of the more radical proposals, like spinning off bottling,” analysts at Vital Knowledge said in a note.

Gold Pulls Back from Record Highs

Gold prices eased modestly after a ceasefire between Israel and Hamas reduced safe-haven demand. The precious metal remains near its record levels after surpassing $4,000 per ounce earlier this week.

Concerns over Japanese fiscal health, the U.S. government shutdown, and political instability in France continue to support gold’s elevated levels. Dovish tones from the Fed minutes also helped maintain optimism over future rate cuts.

Spot gold slipped 0.2% to $4,032.10 an ounce, while December futures declined 0.5% to $4,050.50 by 03:48 ET.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Ferrari NV (BIT:RACE) saw its stock edge lower on Thursday after unveiling its long-term 2030 Strategic Plan during its Capital Markets Day. Shares were down as much as 3% earlier in the session before paring losses to trade 1% lower by 08:30 GMT.

The luxury carmaker laid out an ambitious product roadmap, announcing its intention to roll out an average of four new models each year between 2026 and 2030. A highlight of the plan is the launch of the brand’s first fully electric vehicle, the Ferrari elettrica.

By the end of the decade, Ferrari expects its portfolio to be composed of 40% internal combustion engine vehicles, 40% hybrid models, and 20% fully electric cars — a clear signal of its “technology neutrality” approach while embracing electrification.

The plan also highlighted strong growth in Ferrari’s customer base, which has reached 90,000 active clients — a 20% jump compared to 2022. To enhance the customer experience, the company will open new Tailor Made centers in Tokyo and Los Angeles.

Ferrari Executive Chairman John Elkann stated, “With the new Ferrari elettrica, we once again affirm our will to progress by uniting the discipline of technology, the creativity of design and the craft of manufacturing.”

As part of its strategy, Ferrari stressed the importance of developing electric components in-house at its Maranello site, coupled with sustained investment in performance across all powertrains.

The company also set clear sustainability goals, pledging to cut its Scope 1 and 2 greenhouse gas emissions by at least 90% by 2030 compared with 2021 levels. Additionally, Scope 3 emissions will be reduced by at least 25% in absolute terms by 2030 versus 2024.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equities opened in negative territory on Thursday, with weakness in the banking sector dragging markets lower after a sharp drop in HSBC (LSE:HSBA) shares. The decline followed the bank’s announcement of plans to privatise Hang Seng Bank. Gains in mining and tech stocks, however, helped soften the overall losses.

As of 07:11 GMT, the pan-European STOXX Europe 600 index was down 0.1% at 573.4 points but remained close to its all-time high reached the previous session.

HSBC shares tumbled 6.6% after the British bank unveiled its privatisation proposal for Hang Seng in a deal valued at HK$106.1 billion (US$13.64 billion), pushing the broader banking sector down by 1.2%.

Other major lenders also lost ground, with Lloyds Banking Group (LSE:LLOY) slipping 3.4% after warning it may need to allocate additional funds to cover compensation related to motor finance claims.

Outside of banking, Germany’s Gerresheimer AG (TG:GXI) plunged 10.7% after cutting its annual guidance, weighing further on sentiment.

By contrast, the basic resources sector advanced 1.4%, supported by rising copper and iron ore prices. Technology names gained 0.4%, led by French IT group Alten, which climbed after announcing plans to split the roles of chairman and CEO in a governance shake-up.

Luxury fashion brand Burberry (LSE:BRBY) rose 2.4% after Deutsche Bank upgraded its rating from “hold” to “buy,” providing a bright spot in an otherwise subdued session.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European Commission President Ursula von der Leyen announced that the European Union plans to mobilize more than €400 billion by 2027 through its Global Gateway initiative, significantly increasing its original investment goal.

“Global Gateway originally aimed to invest €300 billion, half of it in Africa, between 2021 and 2027, as an alternative to the Chinese initiative,” von der Leyen said. The program is designed to boost investment in countries across the global South, offering a strategic counterweight to China’s infrastructure push.

The initiative focuses on key areas such as energy, transport, education, and research. It also includes efforts to strengthen partnerships that will help the EU secure critical raw materials needed for the green transition, thereby reducing reliance on Chinese supply chains.

Von der Leyen also announced the creation of a new mechanism to streamline investment proposals: “today the EU will launch a Global Gateway Investment Hub, a one-stop shop for companies’ proposals.”

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Johnson Matthey (LSE:JMAT) announced on Thursday that it anticipates its full-year underlying operating profit will land toward the upper end of its previously guided growth range. The improved outlook is supported by a £10 million tailwind from stronger platinum group metal (PGM) prices and favorable foreign exchange movements.

Excluding the Catalyst Technologies and Value Businesses segments, the company now expects underlying operating profit growth to reach the top end of its original mid-single-digit forecast, up from the earlier projection of around 2% growth. Management highlighted that performance will be weighted toward the second half of the fiscal year.

The company also expects free cash flow (FCF) to strengthen meaningfully. In the first half of fiscal 2026, FCF is projected to improve sharply year over year, reversing the £169 million outflow recorded in the prior-year period. For the full year, free cash flow is anticipated to rise materially from the £59 million inflow reported in fiscal 2025.

The Catalyst Technologies segment, which is in the process of being wound down, is expected to report a significantly lower underlying operating profit in the first half compared to the previous year, primarily due to softer demand for catalysts and delayed licensing wins.

Overall, Johnson Matthey expects group performance to be notably stronger in the second half of the fiscal year, supported by the positive pricing environment and operational execution.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

SSP Group PLC (LSE:SSPG) announced on Thursday that it expects full-year earnings per share to come in line with market forecasts despite a slowdown in passenger growth during the second half of the year. Alongside its earnings update, the company unveiled a £100 million share buyback program, signaling confidence in its growth trajectory.

For fiscal year 2025, SSP reported revenue of roughly £3.7 billion, an 8% increase year-on-year at constant currency. Operating profit is expected to reach approximately £230 million, representing an 11% rise. The company anticipates EPS of around 11.5p at actual exchange rates, a 15% improvement compared to the prior year, helped by lower-than-expected tax and interest costs.

“We have delivered a resilient Q4 performance against an unsettled macro-economic and softer demand environment in some of our key travel markets,” said Patrick Coveney, CEO of SSP Group. “Our UK and Asia Pacific businesses have traded particularly well and, taken in aggregate, our performance in the quarter across the portfolio leaves us on track to deliver earnings per share for FY25 in line with current market expectations.”

Fourth-quarter revenue climbed 4% year-over-year on a constant currency basis, below analyst forecasts of 6%, while like-for-like sales rose 2% against a 4% consensus estimate. The UK & Ireland and Asia Pacific segments outperformed, offsetting weaker results from Continental Europe and North America.

According to analysts at RBC, “Over the long term, we expect continued strong growth in Travel Retail, driven by further globalisation and growth in airport retailing capacity. We note a strong space growth story at SSP, although much of the expansion has been focused on the US, where the outlook for the travel segment looks tougher near term.”

RBC added that it expects European margins to gradually recover from a low base as SSP continues to restructure its operations. While labor cost inflation and emerging market currency risks remain concerns, analysts pointed to growing potential for operational leverage supported by investments in digital tools and data analytics.

The company acknowledged persistent margin challenges in its Continental Europe segment, particularly in France and Germany. Operating profit margin for FY25 in this region is expected to be about 2.0%, short of its 3% target. SSP aims to lift margins above 3% in FY26 through cost-saving measures, rent renegotiations, and more disciplined capital spending.

Financial leverage is also expected to improve meaningfully, with net debt to EBITDA projected to fall to around 1.6x at year-end from 2.2x at mid-year, supported by solid free cash flow generation. For fiscal 2026, SSP anticipates EPS will land within the current market range of 12.9p to 13.9p on a constant currency basis.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.