Global Markets Weekly Update - June 18, 2026

U.S. Market Overview

Most major U.S. stock indexes closed higher, buoyed by a U.S.-Iran agreement 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, projections indicated potential rate hikes by year-end, with inflation forecasts raised to 3.6% for headline PCE. This hawkish stance led to a sell-off in stocks and increased Treasury yields.

Retail and Housing Data

Retail sales rose 0.9% in May, surpassing expectations, while housing data showed mixed results. The housing market index fell, and housing starts dropped significantly, indicating ongoing affordability issues.

European Market Insights

The STOXX Europe 600 Index rose 0.62%, with Germany's DAX up 1.59%. However, the eurozone reported a surprising trade deficit of EUR 1 billion in April. The Bank of England held rates steady at 3.75% amid inflation concerns.

Japan's Economic Developments

Japan's stock markets surged, with the Nikkei 225 gaining 7.62%. The Bank of Japan raised its short-term policy rate to 1%, the highest since 1995, to combat inflation risks. Trade data showed resilient exports, but the yen weakened against the dollar.

China's Market Performance

Chinese equities were mixed, with the CSI 300 Index up 3.44%. Industrial production showed resilience, but retail sales declined. The property sector remains weak, although first-tier cities showed signs of stabilization.

Other Key Markets

Brazil

Brazil's central bank cut the Selic rate to 14.25% but expressed caution due to rising inflation risks.

Indonesia

Bank Indonesia raised its key interest rate to 5.75% to stabilize the currency and contain inflation risks.

Market Performance Summary

Index	Thursday's Close	Week's Change	% Change YTD
DJIA	51,564.70	362.44	7.28%
S&P 500	7,500.58	69.12	9.57%
Nasdaq Composite	26,517.93	629.09	14.09%
S&P MidCap 400	3,791.42	-4.90	14.71%
Russell 2000	2,979.72	35.73	20.06%

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