Trading Day-War fears crush confidence

From Yahoo Finance: 2025-06-13 16:34:00

Global markets saw a shift from optimism to pessimism this week. A U.S.-China trade deal framework helped ease tariff tensions. Inflation pressures are cooling, with weaker consumer and producer price figures. Long-dated U.S. Treasury demand eased debt concerns. The dollar weakened, and oil prices surged, impacting inflation outlooks.

Investors are reassessing exposure to the dollar. Many in Europe are increasing hedge ratios, effectively selling dollars on a large scale. Oil prices spiked nearly 10% this week, impacting inflation outlooks. Policymakers will discuss these market moves at the G7 summit next week.

Key market moves this week include oil rising 12%, gold up 3.5%, and the dollar weakening by 1%. U.S. Treasury yields fell after weak data. World stocks and Wall Street ended slightly lower. Emerging markets and bonds are seeing unique market dynamics unseen in 50 years.

Key events to watch on Monday include China’s data dump, India’s wholesale price inflation, U.S. bond auction, and G7 summit in Canada. Opinions expressed in this article are those of the author. Trading Day is available by email every weekday morning.

(Writing by Jamie McGeever; Editing by Bill Berkrot)

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