Sector Update: Consumer Stocks Mixed Late Afternoon

⑴ Italy's 10-year government bond yield fell below 4.55%, retreating from a three-year high as falling oil prices eased the bond sell-off triggered by concerns surrounding Europe's fiscal outlook. ⑵ US President Trump stated that the United States will not attack Iran before next month's midterm elections, easing market concerns about further disruptions to energy supplies. ⑶ Italy's risk premium narrowed, with the yield spread over safe-haven German government bonds dropping to 107 basis points from 130 basis points last Friday. ⑷ The market has also reduced bets on European Central Bank rate hikes, now expecting the policy rate to be 3.2% by the end of 2027. ⑸ However, yields remain near multi-year highs, and Italy's debt-to-GDP ratio of 138.6% is expected to exceed that of Greece this year, making it the most indebted country in the Eurozone. ⑹ The European Commission's fiscal chief urged budget restraint, rejecting calls from Italy and Greece for greater budgetary flexibility. ⑺ Meanwhile, the Italian government is in talks with banks and energy groups about possible contributions as it prepares to submit the 2027 budget next week.

Spot gold has just surpassed the $4,200.00/ounce mark, now trading at $4,200.18/ounce, up 1.61% for the day. The main COMEX gold futures contract is currently quoted at $4,224.80/ounce, up 1.63% for the day.

According to Nikkei News, Honda has decided to procure complete vehicles from Mitsubishi Motors through an Original Equipment Manufacturer (OEM) arrangement. This will mark Honda's first vehicle procurement from another automaker in about 30 years. As market competition intensifies, Honda aims to strengthen its partnerships with Nissan and Mitsubishi Motors to enhance competitiveness. The three companies have made progress in joint discussions that began in August 2024. According to the plan, Mitsubishi Motors will produce the L200 Triton pickup truck in Thailand, branded with the Honda logo, and it will be sold in Southeast Asian and other markets starting from 2028 and beyond.