UK business activity expanded modestly in June, as new orders rose for the first time this year; however, employers accelerated job cuts and remained cautious amid tensions in the Middle East. In Germany, private sector output returned to growth, driven by a recovering manufacturing sector reporting its strongest increase in new orders in over three years. 

The dollar weakened to a multi-year low against major currencies following reports that President Trump was considering an early nomination for the next Federal Reserve chair, reflecting frustration over the slow pace of rate cuts. The currency had already been under pressure this year amid concerns about the US economy, driven by the trade war and broader policy uncertainty. 

Israel has resumed operations at its Leviathan and Karish natural gas fields, which had been shut down since 13 June. These fields supply most of Israel’s gas exports to Egypt and Jordan, and their closure had caused disruptions, including halted production at Egyptian fertilizer plants. Exports are expected to ramp up gradually, with full operations anticipated by Saturday. 

EDF has warned of likely production restrictions at its Blayais nuclear plant next week due to high temperatures in the Garonne river, with an assessment on Monday that could affect the 2.7 GW currently in operation. Similar warnings have been issued for the Golfech, St Alban, and Bugey nuclear plants (together totalling around 9 GW) as France continues to endure a heatwave.