From Yahoo Finance: 2025-06-18 00:32:00

Markets are on edge as uncertainty looms ahead of the Federal Reserve rates decision amidst global economic concerns and geopolitical tensions. The Israel-Iran air war, G7 discord over Ukraine, and U.S. economic fragility add to investor worries. Trump’s aggressive stance toward Iran further fuels apprehensions of heightened U.S. involvement.

A risk-off sentiment prevails in markets, with Asian shares dropping and the dollar strengthening. European stock futures indicate a lower opening, while oil prices stabilize following a 4% surge. The Fed faces a challenging global backdrop, with all eyes on its policy decision and updated economic projections.

Market expectations currently reflect two Fed cuts by year-end, but sentiments may shift if Powell adopts a more hawkish stance. UK inflation data is also on the radar, with consumer prices expected to slow in May. The Bank of England is anticipated to maintain rates, but concerns linger over a slowing economy and subdued wage growth.

A leading UK business group slashes growth forecasts for 2025 and next year due to Trump’s tariffs and rising payroll taxes. Key events shaping markets include the Federal Reserve rate decision and UK CPI release. Stay updated on market-moving headlines with our Tariff Watch daily news digest.

Read more: Gloom pervades ahead of Fed meet’s outcome