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 may reopen the Strait of Hormuz, leading to lower oil prices. The Nasdaq Composite led with a 2.43% increase, followed by the Russell 2000 and S&P 500, which rose 1.21% and 0.93%, respectively. The Federal Reserve held rates steady at 3.50% to 3.75%, but projections indicated potential rate hikes later in the year.

Retail sales rose 0.9% in May, exceeding expectations, while housing data showed mixed signals, with a decline in housing starts but an increase in pending home sales.

European Market Insights

The pan-European STOXX Europe 600 Index increased by 0.62%. Germany's DAX rose 1.59%, while the UK's FTSE 100 fell 0.69%. The Eurozone reported a trade deficit of EUR 1 billion in April, and the Bank of England maintained its base rate at 3.75% amid uncertain inflation outlooks.

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 a 17% year-over-year increase in exports, while core machinery orders rebounded significantly.

China's Market Performance

Chinese equities were mixed, with the CSI 300 Index up 3.44% and the Hang Seng Index down 3.21%. Industrial production rose 4.5% year-over-year, but retail sales fell 0.6%. The property sector continued to struggle, although first-tier cities showed signs of recovery.

Other Key Markets

In Brazil, the central bank cut its Selic rate to 14.25% but expressed caution due to rising inflation. Indonesia's central bank raised its key interest rate to 5.75% to stabilize the currency and contain inflation risks.