Market developments
Equities: Global equity markets had a turbulent week, with geopolitical risk, specifically the resumption of U.S.-Iran hostilities, dominating sentiment. The Stoxx Europe 600 suffered its worst weekly performance since April, snapping a four-week winning streak and retreating from record highs, while the DAX also closed the week in the red. The S&P 500 saw a weekly gain, with sentiment supported by the start of Q2 earnings season and the blockbuster U.S. listing of SK Hynix, whose ADRs surged 15% above their $149 offering price in the largest-ever US listing by a foreign company.
Fixed Income: Government bond yields rose sharply across developed markets, driven by the oil price spike triggered by renewed Middle East conflict and its implications for inflation and central bank policy. U.S. Treasury yields ended the week four to seven basis points higher across maturities, extending a two-week climb of 15–20 basis points in the 5 to 30-year tenors.
Commodities: Oil was the week’s defining commodity story. Brent crude surged from just above $70 per barrel to just below $80 after President Trump declared the US-Iran ceasefire over, with traffic through the Strait of Hormuz grinding to a near standstill following fresh US strikes on Iran. Gold fell, as the prospect of higher interest rates to combat oil-driven inflation weighed on bullion despite the geopolitical backdrop.