Global Market Recap: June 9–14, 2025

GordonGekko
Jun 14
2 min read

1. Mixed Start, Sharp Sell‑off by Week’s End

Equity markets began the week on a positive note. The S&P 500 rose modestly—holding above 6,000—the Nasdaq climbed on tech strength, and the Russell 2000 gained 3.2%, while the Dow ticked higher.

However, sentiment reversed sharply on Friday following Israel’s strikes on Iran. Escalating Middle East tensions pushed Brent crude up nearly 10% intraday and ended the week with a 5.7% gain. This triggered a global equity sell‑off: the Dow lost 1.8%, with the S&P 500 and Nasdaq falling over 1%.

2. Geopolitical Shocks and Safe‑Haven Flows

The shock from Middle East hostilities drove investors into safe‑haven assets. Oil surged, spooking airlines and prompting bond and gold markets to rally. Gold prices rose roughly 1.5%, while U.S. Treasuries strengthened late in the week.

3. Central Banks Stay the Course... For Now

Federal Reserve (U.S.): The Fed is expected to hold rates steady at 4.25–4.50% in its upcoming June meeting. Though recent data suggests cooling inflation, trade and budgetary risks temper rate‑cut expectations.
Bank of England: Now forecast to keep rates at 4.25% through June, with anticipated cuts to around 3.75% by year‑end.
Other central banks: The Bank of Japan, Sweden, Switzerland, and Norway are also issuing forward guidance amid growing global uncertainty.

4. Global Growth Outlook Slashed

The World Bank cut its 2025 global growth forecast from 2.7% to 2.3%, citing tariff barriers and heightened uncertainty.

5. Macro Trends and Investor Alignment

Global markets are increasingly home‑biased, with a shift toward domestic investment. Tech and healthcare sectors continue to lead performance, while energy underperforms amid geopolitical volatility. Equity‑to‑bond ratios are now adjusted to reflect cautious optimism.

Weekly Highlights at a Glance

Theme	Key Development
Trade	U.S.–China talks continue; no major break through
Inflation	U.S. CPI cooler than expected; PPI undershoots forecasts
Labor Market	U.S. payrolls rose by 139k; unemployment steady at 4.2%
Commodities	Oil surged ~8–10%; gold up ~1–2%
FX & Bonds	Dollar weakened; bonds rallied on safe‑haven demand

What to Watch Next Week

Middle East developments: Continued tension or de-escalation may shape risk sentiment and oil markets.
Central bank meetings: Fed Jun 17-18, BoE, and others release policy decisions and forecasts.
Macro data: Watch U.S. inflation, labour market updates, and upcoming trade‑deal progress during the G7.

Disclaimer: This article is for informational purposes only. It does not constitute financial advice. Please perform your own research or consult a licensed advisor before making investment decisions.