📅 Friday, June 20
► European markets rebound, led by travel stocks & easing bond yields
European equities trade positively at the end of the week higher as geopolitical tensions appeared to ease slightly, and travel stocks rallied. The Stoxx 600 rose +0.55%, breaking a three-day losing streak: DAX (+1.1%), CAC40 (+0.65%), FTSE100 (+0.45%), (FTSE MIB (+1.05%), IBEX 35 (+0.9%). UK retail sales came in much worse (-2.7% MoM) than expected (-0.5%) and show significant weakness of the UK consumer. TUI surged after a Barclays upgrade, while Berkeley Group fell on earnings and management news. Yields were mixed: Germany’s Bund held at 2.52%, UK 10Y edged up to 4.54%. EUR/USD rose to 1.152, as investors assessed central bank caution amid elevated oil risks. GBP/USD tested 1.350. Also in Europe futures on stocks and indices expire today in the so called big expiration day (Triple Witching).
► US futures still below Wednesday level ahead of Triple Witching; Fed remaining hawkish weighs
US futures are still trading below Wednesday levels following Thursday’s 0.9% drop and Juneteenth holiday closure. Markets remained cautious as President Trump delayed any strike decision on Iran for “up to two weeks,” (Trump's favorite time frame when delaying decisions) dampening fears of immediate escalation. Fed Chair Powell reiterated a data-dependent stance, while Trump criticized him for delaying rate cuts. The 10Y Treasury yield rose slightly to 4.41%. Wall Street is still digesting this week's hawkish Fed tone and geopolitical uncertainty, with volatility likely heading into the weekend especially as options and futures on stocks and indices expire today (Triple Witching).
► Asian markets mixed as China holds rates steady; Korea rallies to 42-month high
Asia-Pacific markets were mixed as China kept its loan prime rates unchanged (1Y at 3.0%, 5Y at 3.5%), while Korean equities surged. South Korea’s Kospi jumped +1.48%, closing above 3,000 for the first time in 42 months. Hang Seng climbed +1.26%, SGX-CNBC China Growth Index +1.19%, while Japan’s Nikkei fell -0.22% amid rising inflation (core CPI at 3.7% YoY). Shenzhen and Shanghai ended marginally lower. India’s Nifty 50 rallied +1.29%. Traders showed cautious optimism despite tensions in the Middle East and soft Chinese stimulus signals.
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