From Yahoo Finance: 2025-06-20 16:35:00

Global markets showed cautious optimism on Friday amidst a possible de-escalation in the Israel-Iran conflict, leading to stock market gains and oil’s biggest drop in a month. President Trump’s delayed decision on involvement and ongoing negotiations between Iran and Europe are keeping the situation uncertain. Wall Street remained subdued. Tehran demands Israel cease attacks before discussing a new nuclear deal directly with the U.S., but conflict continues.

While the situation remains fluid and fragile, markets have slightly improved from the conflict’s start a week ago. Central banks had a significant week, with the Federal Reserve taking a hawkish stance, the Bank of Japan shifting plans, and other central banks making unexpected moves. Powell’s upcoming testimony and Fed officials’ speeches next week will provide insights into future policy decisions.

Trade tensions between the U.S. and China are escalating as negotiations prove challenging. China, holding leverage in global supply chains, remains resilient, with the U.S. facing limited options. The coming weeks will be crucial for markets, with Trump’s decision on U.S. involvement in the conflict, tariff deadlines, and ongoing trade negotiations impacting global stability and economic outlooks.

Read more: Trading Day: On weekend war-watch again