Highlights
Global markets stumbled slightly this past week, as trade tensions resurfaced and caution prevailed ahead of the July 9 tariff deadline. U.S. equities outperformed, with the S&P 500 gaining 1.72% to close at a record 6,279, while the Nasdaq rose 1.48% to 22,867, buoyed by strong non-farm payroll data and falling unemployment, which reaffirmed optimism about the U.S. economy’s resilience. However, European markets edged lower: the STOXX 600 fell 0.5%, and the Eurozone’s STOXX 50 dropped 0.69%, dragged down by weak performance in banks and industrials. In Asia, the Nikkei 225 declined, snapping a multi-week rally amid investor nerves over global trade policy and mixed economic signals. Meanwhile, the U.S. dollar weakened, and oil prices gained slightly on hopes for de-escalation in the Middle East. Despite the caution, equity funds saw inflows of $43 billion, the highest weekly total since November 2024, reflecting selective optimism across markets.
Data Highlights
The Non-Farm Payroll in the U.S showed that 147k jobs were added in June 2025. This was significantly higher than the market expectation of 110k. The Eurozone inflation rate rose slightly to 2% in June, in line with the European Central Bank and analysts’ target of 2%. The unemployment rate in the Eurozone rose to 6.3% in May, higher than the analysts’ forecast of 6.2%. In Australia, retail sales in May rose by 0.2% falling short of market expectation of a 0.4% increase.
Week Ahead
Eurozone Retail Sales YoY – Monday |Australia Interest Rate Decision – Tuesday | U.S FOMC Minutes – Wednesday | Canada Unemployment Rate – Friday
