Global Markets Weekly Update

Date: July 02, 2026

This report summarizes the key insights from the global markets for the week ending July 2, 2026.

U.S. Market Overview

Major U.S. stock indexes had a mixed performance, with the Nasdaq, S&P 500, and Dow Jones advancing, while the Russell 2000 and S&P MidCap 400 declined. The communication services, financials, and consumer discretionary sectors saw strong gains, while real estate, utilities, and energy shares fell. The U.S. markets were closed on Friday for Independence Day.

Labor Market Insights

The U.S. economy added 57,000 jobs in June, significantly below the expected 110,000, marking the slowest growth since February. The unemployment rate decreased to 4.2%. Following this report, the likelihood of a Federal Reserve rate hike in July dropped from 29% to 18%.

Consumer Confidence and Manufacturing Activity

Consumer confidence remained subdued, with the index at 91.2 in June. The manufacturing PMI fell to 53.3, indicating continued expansion but missing expectations.

Treasury Yields

U.S. Treasury yields rose, with the 10-year note yield increasing to about 4.49% by Thursday afternoon.

European Market Overview

The pan-European STOXX 600 Index rose by 1.96%. Lower oil prices improved sentiment, with Germany’s DAX up 3.69% and France’s CAC 40 rising 1.07%.

Eurozone Inflation

Eurozone inflation fell to 2.8% in June, below expectations, which may reduce the urgency for the European Central Bank to raise interest rates.

UK Economic Data

The UK GDP grew by 0.6% in Q1 2026, and house prices rose by 2.2% year-over-year in June.

Japan Market Overview

Japan's stock markets showed mixed results, with the Nikkei 225 down 0.91% and the TOPIX Index up 1.30%. The Bank of Japan's Tankan survey indicated improved sentiment among large manufacturers.

Bond Yields and Yen Volatility

The yield on the 10-year Japanese government bond rose to 2.78%. The yen experienced volatility amid speculation of potential government intervention.

China Market Overview

Chinese equities were mixed, with the CSI 300 Index down 1.15%. Manufacturing PMI data showed resilience, indicating continued expansion in the sector.

PBOC Liquidity Measures

The People's Bank of China launched new liquidity operations to support short-term funding management, signaling a focus on liquidity rather than broad easing.

Other Key Markets

Colombia

Colombian markets reacted to a central bank rate hike and new fiscal policy signals from the incoming government, focusing on fiscal consolidation.

Venezuela

Venezuelan markets weakened due to the economic impact of recent earthquakes, affecting debt restructuring outlooks and leading to a sell-off in bonds.

Important Information

This material is for informational purposes only and is not intended as investment advice. Past performance is not indicative of future results.