International News 06/06

June 06, 2024 No. 88

Toyota, Mazda and Yamaha Japan have temporarily suspended vehicle sales.

Toyota, Mazda, and Yamaha have temporarily suspended the delivery and sale of certain vehicles due to irregularities identified in their model certification applications by Japan's Ministry of Transport. Honda Motor, Suzuki Motor, and Yamaha Motor were also found to have irregularities in their vehicles. In response, the Ministry of Transport has instructed Toyota, Mazda, and Yamaha to suspend motorcycle sales. Toyota has ceased deliveries and sales of three Japanese-made car models, while Yamaha has suspended the delivery of sports motorbikes. Furthermore, Mazda has suspended deliveries of the RF Roadster sports car and Mazda2 hatchback following the discovery that employees had manipulated the test results of engine control software. The suspensions commenced last Thursday.

European PMI Indices Start to Move Up

The decline in the eurozone manufacturing sector appears to be coming to an end, according to the latest data from Hamburg Commercial Bank (HCOB) and S&P Global. The final eurozone manufacturing purchasing manager's index (PMI) rose to 47.3 in May from 45.7 in April, indicating a potential turning point for the industry. HCOB's Chief Economist, Cyrus de la Rubia, anticipates that the sector is poised to halt the decline in production that has persisted since April 2023. This positive sentiment is supported by an increase in business confidence regarding production, which has reached its highest level since early 2022. Furthermore, new orders have increased significantly, reaching their highest level in two years. The reduction in production costs has also enabled factories to reduce the price of their goods. Consequently, the European Central Bank may consider reducing interest rates at its upcoming meeting in order to assist in reducing inflationary pressures.


Following the release of weak manufacturing data and NYSE disruptions, Wall Street saw a slight gain.

Wall Street closed slightly higher as the S&P 500 and Nasdaq indices maintained their lead from earlier in the week. The US stock market was influenced by weak manufacturing sector data and disruptions on the NYSE, which led to trading halts on multiple stocks. On Monday, the Dow Jones Industrial Average closed down, while the S&P 500 and Nasdaq Composite both closed higher. A technical issue on the NYSE led to significant fluctuations in the prices of Berkshire Hathaway and Barrick Gold shares, resulting in trading halts for approximately 60 stocks before the issue was resolved. The technology sector performed well, while the energy sector lagged behind. Concerns about weakening economic growth were raised as US manufacturing activity slowed for the second consecutive month. Overall, the market was awaiting the next catalyst and experienced choppy movements after earnings reports.