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% 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 by year-end, causing a sell-off in stocks.

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 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, 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 Shanghai Composite rising 1.46%. However, the Hang Seng Index fell 3.21%. May data indicated resilience in industrial production but weakness in retail sales and property investment, highlighting an uneven recovery.

Other Key Markets

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