This week, global financial markets responded to a combination of new tariff threats and surprisingly high risk appetite. Wall Street fluctuated around record levels but faced pressure from tariff news.
Equities Overview
Equity markets reacted to tariff news and corporate earnings reports.
Key index performance:
- The S&P 500 hit record highs of around 6,290 early in the week before dipping to about 6,266 by July 11-12. - The Nikkei and FTSE 100 generally climbed, driven by solid tech performance. - The Nifty 50 also reflected the overall positive sentiment in Asia, posting moderate weekly gains.
Major winners and losers:
- Big Tech led the charge, boosting U.S. equity markets. - The energy sector lagged, as earnings fell year-over-year.
Regional trends:
- U.S. indices ended the week at or near all-time highs amid easing inflation concerns and uplifted earnings. - Europe saw modest gains while staying cautious ahead of ECB signals. - Asia, led by Japan and India, followed the global risk-on sentiment.
Commodities Dynamics
Oil prices surged in response to the IEA’s warning of a tighter supply outlook.
- Brent crude rose approximately 3% this week. - Gold held steady around $3,269/oz despite a stronger dollar. - Silver rallied to ~$36.50, its highest in 13 years, while platinum jumped ~10% to ~$1,415, an 11-year peak.
Influencing factors:
- The OPEC+ outlook contributed to oil price increases, with forecasts of tightening supply. - Inflation-driven safe-haven flows supported metals.
Cryptocurrencies and Alternative Assets
Bitcoin reached new record highs up to ~$118,000, supported by significant ETF inflows. - Ethereum gained over 16% in five days. - Positive sentiment ahead of the upcoming 'Crypto Week' (July 14-18) in the U.S. was evident. - Institutional momentum and regulatory clarity are boosting crypto strength.
Looking at the broader picture, markets are fluctuating due to tariff uncertainties. Tech and crypto sectors demonstrated strong performance, while rising bond yields and a strengthening dollar reflect inflation-related risks.
