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.

A more muted week for global markets, but with plenty of moving parts coming out of US trade policy.

From an announcement regarding negotiations with the European Union and speculation regarding a US-Japan trade deal, to the ruling from the U.S. Court of International Trade and subsequent appeal – trade policy dominated investor sentiment during the week.

Markets React: Trade Tensions Ease, But Uncertainty Remains

Global market reacted positively to a de-escalation in trade tensions between the US and China – with the US stock market posting some strong returns during the week. Investors remained concerned about the economic impact of tariffs and more muted returns from China appear to suggest that investors expect less stimulus from Beijing.

Global market returns were mixed but muted during the week. Trade talks continued to be a key focus area, with the UK-US trade deal boosting investor sentiment, as were the news that China and US were holding trade talks over the weekend. In China, an expected policy boost by the central bank also added to positive sentiment. Meanwhile, the Bank of England cut interest rates, as widely expected.

Global market returns were strong last week as trade tensions eased off and President Trump walked back on earlier comments about the chair of the US Central Bank. All eyes will continue on trades and tariffs, the impact these may have on economic growth and any stimulus from governments to ease the impact of these tariffs.

Global market returns were again extremely volatile last week with investor sentiment dominated by trade headlines coming from the Donald Trump administration. The week saw tensions escalate further between the US and China sparking fears about the broader impact it could have on the global economy.