Weekly Market Insights – 6 July 2026

A week marked by signs of moderating inflation and slowing economic momentum saw investors increasingly anticipate a more accommodative monetary policy. Softer US labor market data reinforced expectations of future Fed easing, while Eurozone inflation fell below forecasts, reducing pressure on the ECB. At the same time, resilient business activity in Japan and improving manufacturing conditions in China highlighted the continued divergence across major economies, as geopolitical tensions eased following a temporary US–Iran agreement.

Markets responded positively to the improving macro backdrop, with global equities advancing as US and European indices extended their gains despite continued rotation away from large-cap technology stocks. Sovereign bond yields moved higher overall, while corporate credit delivered mixed performance amid persistent rate pressure. Commodity markets remained relatively stable, with oil prices consolidating and precious metals posting modest gains, while the US dollar softened slightly and cryptocurrency markets strengthened on broad-based gains across major digital assets.