Market developments
Equities: Global equity markets experienced a volatile week dominated by the U.S. Supreme Court decision on Friday to strike down President Trump’s sweeping global tariffs. European stocks rallied to an all-time high, with the Stoxx 600 climbing higher, led by luxury goods makers including LVMH and Hermes. U.S. markets also advanced, though Trump pledged to impose a 10% global levy, creating continued uncertainty.
Fixed Income: Treasury yields moved higher through most of the week before experiencing volatility following Friday’s tariff ruling. Federal Reserve minutes released Wednesday showed policymakers signaling renewed caution about cutting rates, with “several” officials suggesting the central bank may need to raise rates if inflation remains elevated.
Commodities: Oil prices surged on escalating Middle East tensions, with Brent crude rising to close out the week after adding 4.3% on Wednesday, its biggest daily gain since October. The rally followed reports that a major U.S. military operation targeting Iran could begin soon. Gold remained near $5,000 per ounce throughout the week as major gold miners reported surging profits.