Highlights
Global markets faced mixed performance over the past week, shaped by rising geopolitical tensions and shifting economic signals. Oil prices rallied for a third consecutive week, with WTI crude briefly spiking above $78 per barrel following U.S. airstrikes on Iranian nuclear sites, before settling lower amid confidence in OPEC+ spare capacity. Equity markets reflected this uncertainty: the S&P 500 slipped about 0.15%, the Nasdaq declined by 0.02%, while the Dow Jones posted a modest gain. European and Asian indices were also mixed, with Japan’s Nikkei retreating after core inflation came in hotter than expected. Bond markets held steady, with U.S. 10-year Treasury yields hovering around 4.37% and Japan maintaining stable government bond yields despite inflation pressure. In Australia, the ASX dipped slightly due to energy-driven inflation concerns, while Indian markets saw sharper losses amid crude volatility. The U.S. dollar strengthened on safe-haven demand. Looking ahead, markets are eyeing Fed Chair Jerome Powell’s upcoming testimony, fresh PCE inflation data, and further developments in U.S.–EU trade talks.
Data Highlights
U.S. retail sales grew by 3.3% year-over-year in May, falling short of the 4.9% expected by analysts. The Federal Reserve kept interest rates unchanged at 4.5%, aligning with market expectations. In the U.K., the Consumer Price Index rose 3.4% YoY, also matching forecasts. The Eurozone reported a 1.9% increase in consumer prices over the same period. In Japan, the central bank maintained its interest rate at 0.5% as expected, while core inflation came in slightly higher than anticipated at 3.7% YoY versus a 3.6% forecast. Meanwhile, Australia’s unemployment rate remained stable at 4.1%, in line with projections.
Week Ahead
Canada Core Inflation Rate – Tuesday | Australia Consumer Price Index – Wednesday | Japan Unemployment rate, Japan Retail Sales, Canada GDP – Friday.
