Global Markets Weekly Update
Date: June 18, 2026
U.S. Market Overview
Most major U.S. stock indexes closed higher, buoyed by a U.S.-Iran memorandum of understanding that eased oil prices. The Nasdaq Composite led with a 2.43% gain, followed by the Russell 2000 and S&P 500, which rose 1.21% and 0.93%, respectively. U.S. markets were closed on Friday for Juneteenth.
Federal Reserve Update
The Federal Reserve maintained the federal funds rate at 3.50% to 3.75%. However, updated projections indicated potential rate hikes later in the year, with nine of 18 officials expecting at least one increase. Inflation forecasts were also raised, with headline PCE inflation expected at 3.6% for 2026.
Retail and Housing Data
Retail sales rose 0.9% in May, surpassing expectations. However, housing data showed mixed results, with a decline in housing starts but an increase in pending home sales.
European Market Overview
The pan-European STOXX 600 Index rose 0.62%. Germany's DAX and France's CAC 40 saw gains of 1.59% and 1.40%, respectively, while the UK's FTSE 100 fell 0.69%. The Eurozone reported a trade deficit of EUR 1 billion in April.
Bank of England and Economic Sentiment
The Bank of England held rates steady at 3.75%, citing uncertainty due to the Iran conflict. Annual inflation remained at 2.8% in May.
Japan Market Overview
Japan's Nikkei 225 Index surged 7.62%, driven by technology stocks. The Bank of Japan raised its short-term policy rate to 1%, the highest since 1995, to combat inflation risks.
China Market Overview
Chinese equities were mixed, with the CSI 300 Index up 3.44% while the Hang Seng Index fell 3.21%. May data showed resilient industrial activity but weak domestic demand, with retail sales declining 0.6% year-over-year.
Other Key Markets
Brazil's central bank cut rates to 14.25% amid inflation concerns, while Indonesia raised its key interest rate to 5.75% to stabilize the currency and contain inflation risks.
Important Note: This summary is for informational purposes only and does not constitute investment advice.