A week dominated by developments in geopolitical tensions in the Middle East, which have escalated further over the weekend after markets closed. This update covers the week ending 20th June and is likely to be a key driver of markets in the coming week.

At Omnis, we will be monitoring your portfolios and funds as we always do and will provide updates on what the evolving situation could mean for markets through our weekly market updates, and we may provide more frequent updates via our website, or your financial adviser.

Weekly markets in brief

• US: Stocks close mixed amid hopes for de-escalation in the Middle East

• Japan: Trade talks and interest rates

• China: Mixed economic data

• Europe: Central banks cut rates, German investor morale surges but French manufacturing weakens

• UK: Bank of England holds interest rates and inflation slows somewhat

A week dominated by the escalation of geopolitical tensions in the Middle East, sending oil prices higher and markets lower. Other factors included developments in trade negotiations and a focus on economic news.

Weekly markets in brief

• US: Week starts with better-than-expected economic data but ends with geopolitical tensions rising.

• Japan: Trade talks and geopolitics take centre stage.

• China: Deflationary pressures could weigh on the economy.

• Europe: Will the European Central Bank (ECB) pause its interest rate cuts?

• UK: UK economy shrinks, labour market cools, pay growth slows.

Global Markets: Trade talks continue, jobs hold strong, and mixed signals from Asia

A more muted week for global markets. In the US, trade talks continue to be the focus, and the jobs market appears to be more resilient than many expected. Europe appears to be in a good place when it comes to inflation and economic growth, and meanwhile some areas of concern remain in China and Japan.