Market developments
Equities: U.S. and European stocks remained steady near recent highs, indicating continued confidence in earnings and the economy. The S&P 500 closed at record levels, while the FTSE 100 edged higher, boosted by gains in energy and financials. Market sentiment leaned cautiously optimistic, with traders closely monitoring late-month data and early earnings reports.
Fixed Income: Fixed-income markets experienced a period of consolidation, characterized by stable rates and flows primarily driven by technical adjustments. Developed markets saw a steepening yield curve due to increased fiscal pressures, while emerging markets maintained stability supported by solid fundamentals.
Commodities: The commodities market showed mixed performance. Gold experienced a pullback, declining over 6% from recent highs but still trading above $4,000/oz. Oil prices gained more than 2%, supported by steady demand and a tight supply outlook. Silver experienced significant volatility, declining nearly 8% midweek before recovering as traders adjusted positions.