Executive Summary
Global equities ended the week mostly lower as AI-related optimism faded, a stronger-than-expected U.S. May jobs report pushed Treasury yields higher, and the Trump administration announced plans for new 10%–12.5% tariffs on many countries. The Nasdaq fell 4.68% and the S&P 500 posted its first weekly loss since March. European indices were mixed, while Asian equities lost ground as China’s PMI data pointed to an uneven recovery. Brent crude edged higher on Middle East volatility, while gold fell sharply.
Market Snapshot
Weekly performance across major global indices (week ending 05 Jun 2026):
| Index | Friday’s Closing Price | Weekly Change (%) | Direction |
| DJIA | 50,866.78 | -0.32 | ▼ |
| S&P 500 | 7,383.74 | -2.59 | ▼ |
| NASDAQ Composite | 25,709.43 | -4.68 | ▼ |
| FTSE 100 (UK) | 10,368.05 | -0.4 | ▼ |
| CAC 40 (France) | 8,218.24 | 0.43 | ▲ |
| STOXX Europe 600 | 622.66 | -0.53 | ▼ |
| Nikkei 225 (Japan) | 66,588.12 | 0.39 | ▲ |
| CSI 300 (China) | 4,816.92 | -1.54 | ▼ |
| Hang Seng (Hong Kong) | 24,961.95 | -0.88 | ▼ |
| Brent Crude | 93.09 | 1.13 | ▲ |
| Gold | 4,337.10 | -4.9 | ▼ |
Foreign Exchange
(For the week ending 05 Jun 2026)
| Pair | Friday’s Close | Week’s Change |
| EUR/USD | 1.1613 | -0.004 (-0.34%) |
| USD/JPY | 159.99 | 0.72 (0.45%) |
| GBP/USD | 1.3427 | -0.0017 (-0.13%) |
| USD/CHF | 0.7889 | 0.0052 (0.66%) |
| AUD/USD | 0.7132 | -0.0032 (-0.45%) |
U.S. Markets Overview
Major U.S. indexes finished lower, with the Nasdaq down 4.68% and the S&P 500 posting its first weekly loss since March. Early AI-driven gains faded as investors weighed oil price volatility, elevated earnings expectations for AI-linked names, a growing pipeline of AI-related equity issuance, and a stronger-than-expected May payrolls report that pushed Treasury yields higher on Friday.
May nonfarm payrolls rose 172,000, well above estimates of around 80,000, while April was revised up to 179,000. The unemployment rate held at 4.3%. April job openings climbed to 7.618 million, the highest in nearly two years, though initial jobless claims rose to 225,000, the highest since early February. Challenger reported announced layoffs up 16% in May, with companies citing AI as the leading reason for cuts for a third consecutive month.
The ISM manufacturing PMI rose to 54.0, its highest in four years, while the services PMI climbed to 54.5, with both surveys highlighting elevated price pressures. The 10-year Treasury yield rose to around 4.55% from 4.44%.
European Markets
The STOXX Europe 600 fell 0.53% as investors digested progress in U.S.–Iran talks, a possible Israel–Lebanon ceasefire, and the Trump administration’s announcement of new 10%–12.5% tariffs on many countries. Germany’s DAX lost 1.38%, Italy’s FTSE MIB slipped 0.29%, the UK’s FTSE 100 fell 0.40%, while France’s CAC 40 gained 0.43%.
Eurozone Q1 GDP was revised down to -0.2%, with Ireland leading declines at -12.1%. Eurozone retail sales fell 0.4% in April. French industrial production edged up 0.1% in April, beating expectations, while UK new car sales jumped 7.1% year-on-year in May — the highest May figure since 2019 — led by a 34.2% surge in battery electric vehicle registrations.
Asian Markets
Japan
The Nikkei 225 gained 0.39% while the broader TOPIX fell 0.20%, with sentiment cautious amid the fragile U.S.–Iran ceasefire. The 10-year JGB yield was broadly unchanged at 2.66%. BoJ Governor Kazuo Ueda’s comments were interpreted as raising the likelihood of a June rate hike, with Ueda emphasising the need to be vigilant about upside risks to inflation. Nominal wages rose 3.5% year on year, above expectations, and real wages rose for a fourth consecutive month. The yen weakened to around JPY 160 against the dollar, prompting fresh verbal warnings from Finance Minister Satsuki Katayama.
China
Chinese equities ended lower, with the CSI 300 down 1.54% and the Shanghai Composite off 1.00%, while Hong Kong’s Hang Seng fell 0.88%. May’s official manufacturing PMI eased to 50.0 from 50.3, while the private RatingDog manufacturing PMI held in expansion at 51.8. AI sentiment was a bright spot: Tencent is testing an embedded AI agent for WeChat, and DeepSeek is reportedly exploring a fundraising round that could value the company at roughly USD 52 billion.
Commodities
Oil
Brent crude rose 1.13% to $93.09 a barrel amid ongoing volatility tied to Middle East headlines, including reports of fresh U.S.–Iran military exchanges. The fragile ceasefire kept oil markets sensitive to renewed escalation risk through the week.
Gold
Gold fell 4.9% to $4,337.10 as rising Treasury yields and a firmer U.S. dollar weighed on the non-yielding asset, with safe-haven demand fading on continued ceasefire hopes.
Week Ahead
- U.S. inflation data: May CPI and PPI reports will be in focus after the strong jobs report and rising yields.
- Bank of Japan: Markets will watch for confirmation of a June rate hike following Ueda’s hawkish remarks.
- Tariff policy: Further detail on the Trump administration’s planned 10%–12.5% tariffs on many countries.
- Middle East: Ongoing monitoring of the fragile U.S.–Iran ceasefire and any progress toward an Israel–Lebanon ceasefire.
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