Global markets remain steady despite tensions, Fed concerns, with oil up slightly and gold stagnant.

From Yahoo Finance: 2025-06-18 17:06:00

Global markets remained mostly unchanged as investors absorbed news from the Middle East and the Federal Reserve’s policy decision. Key market moves included oil prices slightly up, Wall Street indices flat, and gold failing to reach $3,400/oz. Fed officials project slower growth and higher inflation. The Bank of Japan’s cautious approach may keep Japanese capital overseas.

Despite escalating tensions in the Middle East and the Fed’s concerns of ‘stagflation,’ markets stayed calm. President Trump’s ambiguous stance on Iran and the Fed Chair’s rate decisions added uncertainty. However, markets settled close to previous levels, with no immediate changes. Investors await policy decisions from other central banks, including the Bank of England and Swiss National Bank.

The Bank of Japan’s cautious balance sheet reduction means Japanese capital may not return home soon. Real interest rates and bond yields in Japan remain deeply negative, deterring repatriation of funds. Inflation pressures from Middle East tensions could further keep Japanese money overseas. Analysts suggest multiple conditions are needed for capital repatriation, which is unlikely in the near term.

Market watchers anticipate moves in response to ongoing conflicts, economic data releases, and central bank decisions. Key events include the Israel-Iran conflict, Australia’s unemployment data, and rate decisions from various central banks. While the Bank of Japan’s recent decision may impact capital shifts, other global events could drive market movements.



Read more at Yahoo Finance: Markets calm in eye of hurricane