📅 Thursday, June 26
► European stocks rebound modestly benefiting from gains in US & as bond yields dip
European indices traded mixed to slightly higher as bond yields steadied and oil prices recovered from recent lows. The Stoxx 600 rose +0.15%, led by the DAX (+0.40%), while FTSE 100 climbed +0.30%. France’s CAC added +0.10%, but the FTSE MIB lost -0.3%. Germany’s 10Y Bund yield eased to 2.55% and EUR/USD climbed to 1.17000. Markets remained focused on Powell’s testimony, easing fears over aggressive policy tightening, while fresh M&A headlines and Shell’s denial of BP merger speculation added to sector-specific movement. Gains in Europe followed pre-market gains in the US on rising Fed rate cut hopes.
► US futures climb as Powell signals flexibility & Trump hints Fed shake-up
US equity futures rose early Wednesday (S&P 500 +0.2%, Nasdaq 100 +0.25%, Dow +0.2%) as Fed Chair Powell’s increasingly dovish tone and falling bond yields continued to support investor sentiment. The 10Y yield dipped to 4.28% (down slightly by 1-2 bps), while the USD hit its lowest since 2022. President Trump reportedly plans to name a potential Powell successor by September, reigniting speculation over the Fed’s long-term direction. Micron (+2.3% pre-market) surged on strong AI-related guidance. Durable goods orders came in strong at 16.4% MoM, however, benefiting also from the sharp decline in April following Trump's chaotic tariff plans. GDP growth rate came in lower than preliminary reading and shows that the US economy shrunk in Q1 by 0.5% (QoQ).
► Asian markets mixed as tech stocks lead Japan higher while China lags
Asian equities saw uneven performance. Japan’s Nikkei jumped +1.65%, boosted by chip strength and a weaker yen. Taiwan (+0.28%) and India’s Nifty (+1.21%) extended gains, while Singapore STI added +0.32% and Malaysia rose +0.55%. However, Chinese markets lagged — Shanghai slipped -0.22%, Shenzhen -0.48%, and Hang Seng -0.61% — as investor caution returned following recent rebounds. Korea’s Kospi dropped -0.92% and Australia’s ASX 200 edged down -0.1%. In FX, USD/JPY declined to 144.30 (-0.6%), while AUD/USD rose to 0.654. Market focus remained on trade tensions and tech-related earnings momentum as well as more update on the Fed (and who will succeed Powell in May 2026).
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