Week 26 (June 23-June 29, 2025)

Last week, key economic data and events highlighted mixed but generally steady global growth prospects.

US flash PMI readings showed robust service sector expansion and a manufacturing rebound in the eurozone, while inflation data—including the US core PCE—remained moderate, supporting expectations for steady interest rates.

Central bank communications and the Fed’s balance sheet update offered additional clarity on monetary policy. Meanwhile, elevated oil prices raised inflation concerns, and major corporate earnings from companies like FedEx and Nike shed light on business conditions.

Overall, these developments shaped market expectations as the global economy transitions into the second half of 2025.

Overall market sentiment appears more bullish compared to a month ago. Nevertheless, there remain notable concerns regarding the medium- and long-term outlook, particularly related to tariffs, inflationary pressures, geopolitical tensions, and global trade challenges. The impact of thes…