swaphunter

U.S. Mortgage Applications Surge, Markets Rally Amid Trade Developments, and Mexico Inflation Softens

by

Mortgage Applications See Strongest Weekly Rise in a Month

In the first week of July 2025, the volume of U.S. mortgage applications soared by 9.4% from the previous week — the largest increase in a month, according to data from the Mortgage Bankers Association. This marks the third consecutive weekly gain, the longest streak since December 2024, as benchmark mortgage rates dipped to their lowest since April.

Refinancing activity, which tends to respond quickly to changes in short-term rates, jumped 9% week-over-week and surged 56% compared to the same period in 2024. Similarly, purchase applications rose 9% on the week and were up 25% year-over-year, highlighting renewed strength in the housing market. source: Mortgage Bankers Association of America

Markets Edge Higher on Trade Announcements and Fed Speculation

U.S. equities closed higher on Wednesday as traders digested updates on trade policy and awaited the Federal Reserve’s next moves. The S&P 500 gained 0.5%, the Nasdaq climbed 0.7%, and the Dow Jones rose by nearly 200 points.

President Trump signaled that major trade announcements would be made, including a planned 50% tariff on copper imports and potential 200% tariffs on pharmaceuticals, though implementation is delayed by 12–18 months to give industries time to adapt.

Market participants are closely watching for the FOMC minutes release, which may offer insights into the timing of potential interest rate cuts. Expectations remain strong for two 25 basis point cuts before year-end.

Technology stocks led gains, with Nvidia up 2.2% and Microsoft rising 1.2%. Apple shares were flat, following a statement by White House Trade Counselor Peter Navarro suggesting the company considers itself “too big to tariff.”

Mexico’s Inflation Slows but Core Pressures Rise

Mexico’s annual inflation rate eased to 4.32% in June 2025, down slightly from 4.42% in May, aligning closely with market expectations of 4.31%, according to the national statistics agency INEGI.

Price growth moderated in agriculture (5.04% vs 6.76%) and energy (3.56% vs 3.93%), while accelerating for goods, food, beverages, and services. Notably, core inflation ticked up to 4.24%, suggesting that underlying price pressures remain sticky.

On a monthly basis, inflation was unchanged at 0.28%, maintaining the same pace as in May.  Instituto Nacional de Estadística y Geografía (INEGI)

Conclusion

With falling mortgage rates energizing the U.S. housing market, equity markets buoyed by trade policy hints, and inflation trends in Mexico showing mixed signals, July 2025 is shaping up to be a pivotal month for both investors and policymakers.

Stay tuned for more updates on monetary policy, inflation data, and global economic trends.

    First Name (required)

    Last Name (required)

    Your Email (required)

    Preferred Method of Contact (required)
    eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

    Your Phone (required)

    Your Mobile

    Your Skype

    Category (required)

    Subject (required)

    Your Message (required)

    I am interested in (tick all that apply):

    GDPR Agreement*
    See our privacy policy to learn more about how we use data.

    Open Your MultiBank Trading Account Here

    Markets eye US tariff deadline, FOMC minutes, global central bank moves, and key data from China, Germany, UK, and Canada in the week of July 7.

    by

    🌍 Global Themes

    • Trade Tensions Return: The July 9th deadline marks the end of the US tariff pause. Only partial deals (UK, Vietnam, China framework) are in place. Markets are bracing for possible escalations and their impact on global trade flows.
    • Fed Watch: Investors await the FOMC minutes and several Fed speeches to gauge the outlook for interest rates. Chair Powell maintains a cautious tone, but markets want more clues on the path for policy in H2.
    • Central Bank Decisions: Policy meetings in Australia, South Korea, Malaysia, and New Zealand could signal regional divergence amid slowing global growth and easing inflation.

    🇺🇸 United States

    • Tariff Deadline: High stakes around the July 9th expiration of tariff relief. Key sectors may face higher import costs unless further agreements are reached.
    • Fed & Data:
      • FOMC minutes and Fed speeches in focus.
      • Data includes: Weekly jobless claims, consumer credit, NFIB Small Business Index, and budget statement.
    • Earnings Season Kickoff:
      • Watch Delta Air Lines and Conagra Brands earnings on Thursday for early corporate sentiment.

    🇨🇦 Canada

    • June Jobs Report and Ivey PMI will shape expectations around Bank of Canada’s next move.

    🇲🇽 Mexico & 🇧🇷 Brazil

    • Mexico: June inflation report will guide Banxico’s next rate decision.
    • Brazil: Updates on inflation, retail sales, and business confidence are due.

    🇪🇺 Europe

    • Germany: Expected second monthly industrial production decline, plus trade, wholesale prices, and final inflation data.
    • Eurozone: First dip in retail sales in 5 months.
    • UK: Key data on monthly GDP, industrial output, trade balance, and Halifax house prices.
    • Italy & France: Final inflation and industrial figures.
    • Others: Switzerland (consumer confidence), Turkey (IP), Russia (inflation).

    🌏 Asia-Pacific

    • China:
      • CPI likely flat; PPI deflation to ease (still -3.2% y/y).
    • Japan:
      • Full slate of data: wages, current account, machine orders, producer prices.
    • Australia:
      • RBA decision: Third rate cut (25 bps) expected.
    • South Korea & Malaysia:
      • Monetary policy updates amid growth concerns.
    • New Zealand:
      • RBNZ to hold at 3.25%.
    • Others:
      • Inflation data: Vietnam, Thailand, Taiwan.
      • Singapore: GDP growth to be closely watched.

      First Name (required)

      Last Name (required)

      Your Email (required)

      Preferred Method of Contact (required)
      eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

      Your Phone (required)

      Your Mobile

      Your Skype

      Category (required)

      Subject (required)

      Your Message (required)

      I am interested in (tick all that apply):

      GDPR Agreement*
      See our privacy policy to learn more about how we use data.

      Open an Account with MEX Atlantic, Mulibank Group to Trade on over 20,000 assets

      U.S. Nonfarm Payrolls Beat Expectations in June 2025 Amid Economic Resilience

      by

      U.S. Nonfarm Payrolls Rise 147K in June, Topping Expectations

      The U.S. economy added 147,000 jobs in June 2025, according to the Bureau of Labor Statistics, surpassing forecasts of 110,000 and marking a slight uptick from an upwardly revised 144,000 in May. The latest reading aligns with the 12-month average of 146,000, continuing to demonstrate labor market resilience despite economic headwinds.

      Government jobs made up nearly half the gains, adding 73,000 positions, primarily in state education (+40K) and local education (+23K). Federal government employment, however, declined by 7,000, continuing a downtrend since its January peak.

      Healthcare remained a key driver, adding 39,000 jobs, with hospitals (+16K) and nursing and residential care facilities (+14K) leading the way. Social assistance roles also grew by 19,000.

      ⚠️ Analysts caution that a hiring slowdown could emerge as uncertainty surrounding tariffs, trade, and immigration policies persists.

      ISM Services PMI Rebounds to 50.8

      The ISM Services PMI climbed to 50.8 in June, up from 49.9 in May, exceeding expectations of 50.5. This signals a return to modest growth in the services sector after a brief contraction.

      Key highlights:

      • Business activity rose to 54.2 (vs 50.0)
      • New orders rebounded to 51.3 (vs 46.4)
      • Inventories and export orders also improved
      • Price pressures eased slightly to 67.5 from 68.7

      However, concerns about tariffs and slowing supplier delivery performance (50.3 vs 52.5) remain prevalent. Middle East tensions were noted for the first time, though no direct supply disruptions were reported.

      U.S. Trade Deficit Widens Sharply

      The U.S. trade deficit widened to $71.5 billion in May, up from $60.3 billion in April, as exports dropped 4% to $279 billion, led by declines in nonmonetary gold, natural gas, and finished metal shapes. Imports dipped just 0.1% to $350.5 billion.

      Major trade gap increases:

      • EU: -$22.5B (from -$17.9B)
      • Mexico: -$17.1B (from -$13.5B)
      • Canada and Vietnam: modest increases
      • China: narrowed to -$14B (from -$19.7B)

         source: Bureau of Economic Analysis (BEA)

      Markets Rally on Strong Jobs Data and AI Optimism

      All three major U.S. indices climbed over 0.8% on Thursday, with the S&P 500 and Nasdaq 100 closing at record highs. The strong June payroll report and an unexpected drop in the unemployment rate to 4.1% fueled investor confidence.

      Big movers:

      • Nvidia: +1.3%
      • Synopsys: +4.2% on lifted U.S. export restrictions to China
      • Cadence Design & Synopsys: ~+5% on AI strength
      • Datadog: +10% on S&P 500 inclusion

      Optimism also stemmed from progress in the U.S.-Vietnam trade deal and the House nearing final approval of President Trump’s $3.4 trillion tax-and-spending bill.

      Key Takeaways

      • Labor market continues to show strength but faces downside risks.
      • Services sector rebounds, though growth remains modest.
      • Trade imbalance widens on export slump.
      • Stock market surges on tech gains and policy optimism.

      Conclusion

      The June 2025 economic indicators paint a mixed yet cautiously optimistic picture. While the labor market and services sector show resilience, trade imbalances and policy uncertainty loom large. Investors appear encouraged by tech sector momentum and fiscal stimulus prospects, but volatility could reemerge as global tensions and trade debates evolve.

        First Name (required)

        Last Name (required)

        Your Email (required)

        Preferred Method of Contact (required)
        eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

        Your Phone (required)

        Your Mobile

        Your Skype

        Category (required)

        Subject (required)

        Your Message (required)

        I am interested in (tick all that apply):

        GDPR Agreement*
        See our privacy policy to learn more about how we use data.

        open an Account with MEX Atlantic part of MultiBank Group

        📉 DE40 Slips as Inflation Cools and Retail Sales Drop: Germany Stock Market Outlook

        by

        📊 Germany Stock Market Index (DE40) Falls Amid Economic Uncertainty

        The Germany Stock Market Index (DE40)—which tracks the performance of 40 top German blue-chip stocks—closed down 0.5% at 23,910 on Monday, breaking a two-day winning streak. The decline comes amid mixed domestic economic data and renewed trade concerns.

        🇩🇪 Key Economic Indicators in Germany

        ✅ Inflation Cools in June

        German inflation surprised markets by dropping to 2.0% year-on-year in June, down from 2.1% in May and below the 2.2% forecast. This signals easing price pressure, potentially giving the European Central Bank (ECB) more flexibility on interest rates.

        ❌ Retail Sales Point to Weak Consumer Demand

        Germany’s retail sales fell 1.6% in May, following a 0.6% drop in April. This back-to-back decline underlines sluggish domestic consumption, a key factor limiting broader economic recovery in Europe’s largest economy.

        🌐 Trade Tensions Add Market Pressure

        Global trade uncertainty continues to weigh on the German stock market. U.S. President Trump confirmed that trade negotiations are ongoing but won’t extend the current 90-day tariff pause beyond July 9. This raises risks for Germany’s export-heavy economy, especially sectors like automotive and chemicals.

        🔻 Biggest DAX Losers: Symrise and Bayer

        • Symrise AG led the market declines with a sharp 7% drop, likely due to sector sentiment or earnings-related concerns.
        • Bayer AG tumbled 5.4% after the U.S. Supreme Court requested the government’s opinion on Monsanto weedkiller litigation, reigniting legal uncertainty for the pharma and agrochemical giant.

        📆 DE40 Monthly Performance

        Despite occasional gains, the DAX (DE40) ended June with a modest 0.4% loss, reflecting ongoing macroeconomic headwinds and market caution.

        📌 What to Watch Next

        • July 9 Trade Deadline: Markets will closely monitor whether new tariffs are imposed.
        • Upcoming ECB Decisions: Slower inflation may influence monetary policy.
        • Consumer Confidence & Earnings Reports: Key indicators for Q3 market direction.
        Line chart of DE40 index performance (June 2024 2025)
        EU Stock Indexes

          First Name (required)

          Last Name (required)

          Your Email (required)

          Preferred Method of Contact (required)
          eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

          Your Phone (required)

          Your Mobile

          Your Skype

          Category (required)

          Subject (required)

          Your Message (required)

          I am interested in (tick all that apply):

          GDPR Agreement*
          See our privacy policy to learn more about how we use data.

          Use this image to open your trading account with MultiBank MEXAtlantic

          US Stocks Surge as Tariff Truce and Fed Rate Cut Hopes Fuel Rally | June 2025 Market Update

          by
          US stock market chart hitting record highs in June 2025

          📈 US Stocks Surge as Fed Cut Hopes and Trade Truce Drive Gains

          Published: June 30, 2025
          Category: Markets & Economy

          US equities rallied on Monday, extending last week’s gains as easing trade tensions and growing expectations of interest rate cuts by the Federal Reserve pushed major indexes to record highs.

          🔼 Major Indexes Reach New Highs

          • S&P 500 and Nasdaq 100: Up 0.5% each
          • Dow Jones Industrial Average: Gained over 200 points

          📰 Market Drivers

          1. 🇺🇸 US-China Trade Agreement

          The US and China announced a formal agreement to prevent new tariffs, with President Trump showing flexibility on the July 9 deadline for reintroducing reciprocal tariffs. This marks a major de-escalation from past tensions, when tariffs reached up to 145%.

          2. 🏦 Fed Rate Cut Expectations Rise

          Investor confidence is rising as soft inflation data and global uncertainties increase the likelihood of multiple Fed rate cuts in 2025.

          3. 💻 Tech Sector Strengthens

          • Canada scrapped its digital services tax, boosting US tech stocks and reopening trade talks.
          • Meta and Alphabet shares rose 1%.
          • Juniper Networks soared 9% after the DoJ approved its HP acquisition, settling a legal dispute.

          💶 Eurozone: Euro Hits $1.17 as German Inflation Falls

          The euro rose to its highest level since September 2021, trading just above $1.17, bolstered by:

          • Weaker US dollar from dovish Fed sentiment
          • Fiscal concerns in the US
          • Cooling inflation in Germany

          🇩🇪 Germany Inflation Back to Target

          According to the Federal Statistical Office:

          • CPI fell to 2.0% in June, down from 2.1%, beating forecasts
          • Core inflation eased to 2.7%, a 3-month low
          • Food inflation slowed to 2.0%, energy prices dropped -3.5%
          • Monthly CPI was flat, following a 0.1% rise in May

          🏦 ECB Policy Outlook

          While inflation edged up slightly in France, Italy, and Spain, the ECB maintains a cautious approach.
          Vice President Luis de Guindos reaffirmed that the current policy is appropriate, but warned of the need for flexibility amid economic uncertainty.

          Markets continue to price the ECB’s terminal rate around 1.75%–1.80%.

          📊 Key Takeaways

          • ✅ US markets are responding positively to reduced geopolitical risk and a potential easing cycle from the Fed.
          • ✅ Eurozone inflation data provides mixed signals but supports a stable ECB outlook.
          • ✅ Tech stocks may continue to benefit from regulatory relief and favorable trade shifts.

          🧠 Related Reads:

            First Name (required)

            Last Name (required)

            Your Email (required)

            Preferred Method of Contact (required)
            eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

            Your Phone (required)

            Your Mobile

            Your Skype

            Category (required)

            Subject (required)

            Your Message (required)

            I am interested in (tick all that apply):

            GDPR Agreement*
            See our privacy policy to learn more about how we use data.

            trade multiple assets on the safest platform in the industry

            Euro Area Economic Sentiment Indicator Falls to 94 in June 2025 Amid Industry Weakness

            by
            EU economic sentiment

            Euro Area Economic Sentiment Indicator Falls to 94 in June 2025

            The Economic Sentiment Indicator (ESI) for the Euro Area dropped to 94 in June 2025, down from 94.8 in May and well below market expectations of 95.1, according to the latest data from the European Commission.

            📉 Key Drivers of the Decline

            The drop in sentiment was largely driven by the industrial sector, where confidence slipped to -12 from -10.4 in the previous month. The decline reflects:

            • Lower order book assessments
            • Higher stocks of finished products
            • Weaker production expectations

            Additional declines were observed in:

            • Retail confidence: -7.5 (vs -7.2 in May)
            • Consumer confidence: -15.3 (vs -15.1)

            📈 Sectors Showing Improvement

            Despite the overall downturn, two sectors posted gains:

            • Services: Confidence improved to 2.9 (from 1.8)
            • Construction: Rebounded slightly to -2.8 (from -3.5)

            🌍 Country-Level Highlights

            Biggest Declines:

            • France: 89.6 (down from 93)
            • Spain: 102 (down from 103.4)
            • Germany: 90.7 (down from 91.5)

            Stable or Improving:

            • Poland: 101.4 (up from 100.4)
            • Italy: 98.9 (vs 98.7)
            • Netherlands: 97.1 (vs 96.9)

            🔎 What It Means for the Eurozone

            The data suggest ongoing economic weakness across the Eurozone, particularly in manufacturing and retail sectors. While services and construction offer some support, the overall picture points to fragile business and consumer confidence as the region navigates 2025.

            This divergence between countries—particularly the downturn in France and Germany—highlights uneven recovery dynamics within the EU bloc.
            source: European Commission

            Stay tuned for more updates on EU economic indicators and what they mean for markets and policy.

              First Name (required)

              Last Name (required)

              Preferred Method of Contact (required)

              eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

              Your Email (required)

              Your Phone (required)

              Your Mobile

              Your Skype

              Your Message (required)

              I am interested in (tick all that apply):

              GDPR Agreement*
              See our privacy policy to learn more about how we use data.

              Register your Mex Atlantic Trading Account here.

              Oil, Gold, and Dollar Markets React as US–Iran Talks Loom

              by

              WTI crude oil, gold prices, and the US dollar index all moved significantly on Thursday as geopolitical developments, Fed policy signals, and economic data shaped market sentiment.

              Crude Oil Prices Rise Ahead of US–Iran Talks and OPEC+ Meeting

              WTI crude oil futures climbed above $65 per barrel on Thursday, building on recent gains and recovering from earlier losses in the week. The rally comes as investors await high-stakes talks between the US and Iran scheduled for next week. These discussions aim to reduce tensions in the Middle East and limit Tehran’s nuclear ambitions.

              The move follows President Trump’s reaffirmation of the maximum pressure campaign, including restrictions on Iranian oil exports. However, he also hinted at possible enforcement leniency to support Iran’s reconstruction, suggesting China may continue importing Iranian crude.

              In a sign of strong demand, US crude inventories dropped by 5.8 million barrels, reaching an 11-year seasonal low. Cushing stockpiles also fell to the lowest since February.

              Markets are now turning their focus to the upcoming OPEC+ meeting on July 6, where the group will set its production policy for August. Russia may support a supply increase if conditions warrant it.

              Gold Prices Edge Higher on Weaker Dollar, Geopolitical Relief

              Gold prices rose toward $3,340 per ounce, extending gains from the previous session. The weaker US dollar and falling Treasury yields provided support, while easing geopolitical tensions added a further boost.

              Next week’s US–Iran talks have sparked cautious optimism in markets. While the ceasefire between Iran and Israel is holding, concerns about its durability remain.

              Meanwhile, Fed Chair Jerome Powell, in his second day of testimony, maintained a balanced stance—acknowledging inflation risks from tariffs but holding off on immediate rate cuts. Nonetheless, weak consumer confidence in June raised fresh concerns about the labor market and trade uncertainty, potentially strengthening the case for future easing.

              Markets are now closely watching key data, including Thursday’s final Q1 GDP reading and initial jobless claims, followed by PCE price data on Friday.

              US Dollar Slides to Three-Year Low Amid Rate Cut Expectations

              The US dollar index fell to around 97.5, marking its lowest level in over three years. The decline reflects a mix of easing geopolitical tensions, growing fiscal worries, and expectations of Federal Reserve rate cuts.

              With the ceasefire between Iran and Israel seemingly stable and US–Iran negotiations on the horizon, risk sentiment improved. On the policy front, Chair Powell reiterated a cautious stance, stating that while tariffs may drive inflation, the Fed would likely continue easing absent those pressures.

              Traders are now pricing in over 60 basis points of rate cuts by year-end, with the next move anticipated in September. Attention is also turning to US trade negotiations ahead of President Trump’s July 9 deadline, and efforts in Congress to finalize a tax and spending package around the same period.

              Looking Ahead

              Markets are poised for more volatility as geopolitical, economic, and policy developments continue to unfold. Investors should watch closely for:

              • US–Iran nuclear talks next week
              • July 6 OPEC+ meeting outcomes
              • Upcoming US economic data (GDP, jobless claims, PCE)
              • Fed policy signals amid global trade uncertainty

              Stay tuned for further updates as these stories evolve.

              Fill out the registration form below to receive a FREE consultation from Swap Hunter

                First Name (required)

                Last Name (required)

                Preferred Method of Contact (required)

                eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

                Your Email (required)

                Your Phone (required)

                Your Mobile

                Your Skype

                Your Message (required)

                I am interested in (tick all that apply):

                GDPR Agreement*
                See our privacy policy to learn more about how we use data.

                Open your Trading Account with MEX Atlantic, part of the MultiBank Group

                Click on this image to open your MEX Atlantic, Multibank Group trading account.

                U.S. Housing Market Slumps in May 2025 | Fed Dovish, Tech Stocks Rally

                by

                🏠 U.S. New Home Sales Plunge in May 2025 as Buyers Retreat Amid High Mortgage Rates

                New single-family home sales in the U.S. fell sharply in May 2025, dropping 13.7% month-over-month to a seasonally adjusted annualized rate of 623,000 units, according to the U.S. Census Bureau. This marks the biggest decline since June 2022, far below market expectations of around 700,000 units.

                📉 Housing Market Breakdown:

                • South: -21% to 349,000 units
                • West: -5.4% to 159,000 units
                • Midwest: -7.1% to 78,000 units
                • Median home price: $507,000 (+1.4%)
                • Supply: 9.8 months at current sales pace

                High mortgage rates and economic uncertainty are causing many potential buyers to delay purchases, signaling a cooling housing market despite rising prices.

                📊 Stock Market Update: Tech Leads, Real Estate Lags

                The S&P 500 rose 0.2% on Wednesday, while the Nasdaq 100 gained 0.4%, inching closer to a new all-time high. The Dow Jones remained near flatline levels.

                Top Performers:

                • Nvidia: +1.3%
                • Apple: +1.2%
                • Microsoft: +0.6%
                • Amazon: +1.1%
                • Meta: +0.2%

                Underperformers:

                • Real Estate sector (reflecting weak housing data)
                • FedEx: -5% after disappointing profit forecast

                Investor sentiment was buoyed by Fed Chair Jerome Powell’s dovish testimony before Congress, which reinforced expectations of at least two interest rate cuts by the end of 2025. In addition, a ceasefire between Iran and Israel helped calm global markets.

                💵 Dollar Index Holds as Fed Signals Policy Flexibility

                The U.S. Dollar Index (DXY) held steady at 98 on Wednesday, pausing its recent slide to multi-year lows.

                Key Drivers:

                • Powell’s remarks: Economic uncertainty justifies patience on interest rates
                • Disinflation outlook: Maintained as long as no new tariffs are introduced (watch for July 9 deadline)
                • Energy prices: Falling due to stability in the Strait of Hormuz, boosting bets on slowing inflation

                Meanwhile, other major economies are also leaning toward monetary easing, helping to stabilize the greenback despite rate cut expectations in the U.S.

                📌 Final Thoughts: What to Watch Next

                • Will housing weakness extend into summer?
                • Can tech continue to lead the market higher?
                • July 9 tariff decision will be critical for inflation and Fed policy
                • Watch for inflation and jobs data to confirm (or challenge) rate cut bets

                📬 Stay tuned for more market insights and economic updates.
                📢 Don’t forget to share this post and leave a comment below with your thoughts on where the market is headed next!

                  First Name (required)

                  Last Name (required)

                  Preferred Method of Contact (required)

                  eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

                  Your Email (required)

                  Your Phone (required)

                  Your Mobile

                  Your Skype

                  Your Message (required)

                  I am interested in (tick all that apply):

                  GDPR Agreement*
                  See our privacy policy to learn more about how we use data.

                  European Markets Rally as Israel-Iran Ceasefire Holds & Fed Hints at Rate Cuts

                  by

                  European Stocks Climb as Ceasefire Holds, Fed Dovish Tone Lifts Sentiment

                  Markets held onto their upward momentum Wednesday, with the STOXX 50 and STOXX 600 indices both rising 0.3%, extending gains of over 1% from the previous session. Investors were buoyed by easing geopolitical tensions and growing hopes for a Federal Reserve rate cut later this year.

                  🌍 Geopolitical Calm Brings Relief

                  The recent ceasefire between Israel and Iran appears to be holding, providing a much-needed breather for global markets. The truce—brokered by the United States—has helped temper fears of a broader conflict in the Middle East, a key concern for global investors in recent weeks.

                  📉 Fed Signals Potential Rate Cuts

                  Further optimism was driven by Federal Reserve Chair Jerome Powell, who gave testimony before the U.S. Congress on Tuesday. His remarks were widely interpreted as dovish, increasing expectations that the Fed could cut interest rates later this year, providing additional support to financial markets.

                  🔍 Focus Shifts to NATO Summit

                  Investors are now watching the NATO summit in the Netherlands, where discussions around defense spending and geopolitical stability are taking center stage. Any shifts in policy or alliances could have broader market implications.

                  Winners on the European Stock Front

                  Several major companies posted strong gains amid the upbeat mood:

                  • Ferrari (RACE): +3.6%
                  • Stellantis (STLA): +3.7%
                  • ASML Holding (ASML): +2.3%
                  • Philips (PHG): +2.0%
                  • Rheinmetall (RHM): +1.5%

                  These moves reflect renewed investor confidence across a range of sectors, from luxury autos to defense and technology.

                  Crude Oil Bounces Back After Heavy Selloff

                  WTI crude oil prices rebounded above $65 per barrel on Wednesday, recovering some ground after a 13% plunge over the prior two sessions—the steepest two-day fall since 2022.

                  🔥 What’s Driving Oil?

                  • The ceasefire in the Middle East is reducing supply disruption fears.
                  • President Trump signaled support for China—Iran’s top buyer—to continue importing Iranian oil, potentially reshaping the U.S. sanctions landscape.
                  • Despite this, a preliminary U.S. intelligence report warned that American strikes on Iranian nuclear facilities only delayed the program by a few months, keeping geopolitical risk on the table.

                  📉 Supply Tightens

                  Fresh industry data revealed a 4.28 million barrel drop in U.S. crude inventories last week, smashing forecasts for just a 0.6 million barrel draw. This marks the fourth consecutive weekly decline and signals tightening supply conditions.

                  🧠 Final Thoughts

                  Markets are finding their footing amid complex global dynamics. While the ceasefire and dovish Fed tone provide near-term relief, investors remain cautious as geopolitical risks and inflation pressures continue to shape the global economic outlook.

                  Register With Swap Hunter to Get your FREE Consultation

                    First Name (required)

                    Last Name (required)

                    Preferred Method of Contact (required)

                    eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

                    Your Email (required)

                    Your Phone (required)

                    Your Mobile

                    Your Skype

                    Your Message (required)

                    I am interested in (tick all that apply):

                    GDPR Agreement*
                    See our privacy policy to learn more about how we use data.

                    Get Your MultiBank, MEX Atlantic Trading Account today

                    📰 Market Update: US Strikes Iran, Oil Prices Jump, Japan’s Manufacturing Recovers

                    by

                    June 23, 2025 – Global markets are reacting sharply after a surprise escalation in the Middle East, pushing oil prices higher and rattling investor confidence. Meanwhile, fresh data from Japan hints at a modest recovery in the manufacturing sector.

                    🇺🇸 US Stock Futures Edge Lower After Strikes on Iran

                    Stock futures dipped early Monday after the United States launched airstrikes on three Iranian nuclear sites over the weekend. The move, which came sooner than expected, has raised fears of retaliation from Tehran and broader regional instability.

                    President Donald Trump, who had suggested on Friday he’d wait “two weeks” before making a decision, warned Saturday that “there will be either peace, or there will be tragedy for Iran far greater than we have witnessed over the last eight days.”

                    What’s at Stake:

                    • Potential Iranian retaliation targeting US assets or personnel
                    • Disruption of oil shipments through the Strait of Hormuz
                    • Heightened volatility across energy and equity markets

                    🛢️ Oil Prices Surge on Supply Fears

                    WTI crude oil rose over 2% to $75.90 per barrel, reaching its highest level since January 2025. The market is responding to concerns that Iran may restrict oil exports or block the Strait of Hormuz, a crucial artery for about 20% of global crude oil flows.

                    Iran’s parliament has reportedly voted to close the Strait, though final approval is pending from the country’s Supreme National Security Council and Supreme Leader.

                    📉 Market Caution Builds

                    Major US indexes ended last week little changed, as investors braced for worsening geopolitical tensions and growing economic uncertainty. Risk appetite remains subdued as markets await further developments in the Middle East.

                    🇯🇵 Japan’s Manufacturing Sector Returns to Growth

                    On a more positive note, Japan’s Manufacturing PMI from au Jibun Bank rose to 50.4 in June, up from 49.4 in May, marking the first expansion since May 2024. source: S&P Global

                    Key Highlights:

                    • Output and inventory levels rose
                    • Employment edged higher
                    • Demand remained weak, especially due to new US tariffs
                    • Supplier delivery times lengthened, signaling supply chain pressure

                    While input cost inflation held near a 14-month low, output prices remained among the softest seen in four years. Business sentiment was largely unchanged and still below the historical average.

                    📌 Final Takeaway

                    The Middle East situation is developing rapidly and will likely remain the dominant market driver in the short term. Investors should keep an eye on:

                    • Iran’s next move
                    • Oil market dynamics
                    • Safe-haven assets like gold and the US dollar

                    Meanwhile, Japan’s modest manufacturing recovery offers a sliver of optimism amid global turbulence.

                      First Name (required)

                      Last Name (required)

                      Preferred Method of Contact (required)

                      eMailPhoneSkypeWhatsApp/Viber/Telegram,etc.

                      Your Email (required)

                      Your Phone (required)

                      Your Mobile

                      Your Skype

                      Your Message (required)

                      I am interested in (tick all that apply):

                      GDPR Agreement*
                      See our privacy policy to learn more about how we use data.