This week, global financial markets reacted to a combination of central bank patience, cooling macro data, and geopolitical events.
General Trends in Global Markets
U.S. financial markets displayed mixed results as Wall Street digested a Federal Reserve that kept interest rates unchanged while signaling two cuts in 2025. In China, factory output showed signs of slowing, although consumer spending appeared to be increasing.
Equity Market and Sector Performance
The equity markets recorded the following results: - In the U.S., the S&P 500 fell by 0.2% to 5,967.84, while the Dow gained 0.1%, and the Nasdaq added 0.2% thanks to resilient real estate prices and interest in technology. - In Europe, the FTSE 100 ended the week down 0.86% at 8,774.65 due to weak retail sales data in the UK and profit-taking. - Asia showed mixed results, with Japan's Nikkei 225 rising 0.2% to 38,403.
Brief Overview of Commodity and Currency Markets
In the commodity markets, crude oil rose 2.7% to $74.93 per barrel. Gold slipped 0.6% to $1,936 per ounce but held above the $1,930 support level. Currency movements were mixed, though the yen briefly tested 146 per dollar amidst policy divergence.
Given the overall softening of macroeconomic data and the sudden rise in geopolitical tensions, markets exhibit caution. Key indicators from macroeconomics and any potential response from Iran to recent strikes will be crucial in the coming days.
