Global markets regained some footing this week following a turbulent stretch marked by political uncertainty, interest rate tension, and conflicting economic signals. Investors welcomed a moment of relative calm, but questions over inflation, growth and central bank policy remain at the forefront.
In the United States, the S&P 500 closed the week up 1.3%, with tech stocks once again driving the momentum. Traders appeared cautiously optimistic after a series of Federal Reserve speeches hinted that rate cuts could still be on the table later in the year, should inflation soften. However, stronger-than-expected labour market data complicated the picture. The June jobs report showed a rise in non-farm payrolls, suggesting the economy remains resilient. This has led analysts to revise their expectations: one rate cut in December now looks more likely than the two that had been priced in earlier.
Across the Atlantic, European indices ended the week flat to slightly positive. France’s CAC 40 bounced back after an early-week dip, as political fears eased following more moderate polling expectations ahead of the final round of parliamentary elections. Meanwhile, the UK’s FTSE 100 ended marginally higher, helped by sterling weakness and energy gains. Chancellor Rachel Reeves’ first week in office was closely watched; early signals pointed to a pragmatic fiscal path with a focus on investment-led growth rather than austerity.
In Asia, markets were mixed. Japan’s Nikkei reached fresh 34-year highs, continuing its impressive rally amid strong earnings and a weak yen. China’s equities, on the other hand, slid as concerns resurfaced about the country’s uneven post-COVID recovery. The government issued fresh pledges to support the economy, particularly around consumer spending and youth employment, but investors remained sceptical amid a lack of concrete action.
Commodities were steady overall. Brent crude hovered around $87 per barrel as OPEC+ reaffirmed its supply cuts, while gold dipped slightly to around $2,360 amid shifting rate expectations. The US dollar gained against most major currencies, bolstered by stronger job figures and yield differentials, while Bitcoin recovered some ground to trade near $59,000 after a volatile fortnight.
Markets now turn to next week’s inflation figures out of the US and Europe, as well as earnings season in the US, where banks will lead off. With political calendars heating up and macro data mixed, investors are preparing for further swings rather than a smooth ride into the summer.
REFH – newshub finance
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