Week 30 (July 21-July 27, 2025)

The week was defined by central bank caution, mixed data releases, and exogenous market events (tariff delays, crypto rally).

No major surprises occurred, but markets were highly sensitive to central bank commentary. Uncertainty continues over the path for interest rates and growth in major economies.

The postponement of U.S. tariffs and calming of Middle East tensions buoyed global risk appetite and lifted financial markets.

Fed Chair Powell’s remarks (his first after resignation rumors) did not suggest policy changes, leaving markets unsure whether the current rate of 4.25%–4.5% will hold or shift in coming months. The U.S. enters a “blackout period” ahead of an upcoming Fed meeting.

The European Central Bank (ECB) left interest rates unchanged, maintaining a neutral stance as inflation sits at its 2% target but economic growth remains fragile. Markets are now looking to September for a potential rate cut.

The People's Bank of China (PBOC) kept its Basic Lending Rate unchanged, signaling…