Global markets ended the week on a mixed note as investors reassessed elevated technology valuations, particularly within AI-related stocks, while monitoring inflation trends, central bank policy expectations, and geopolitical developments. U.S. equities diverged, with the Dow Jones Industrial Average advancing as investors rotated into more defensive and value-oriented sectors, while technology-heavy benchmarks declined. European markets remained broadly resilient despite mixed economic data, and Asian markets weakened as technology shares came under pressure across the region.
Commodity markets also reflected improving geopolitical sentiment. Brent crude oil declined sharply as supply concerns eased, while gold retreated alongside reduced safe-haven demand. In currency markets, the U.S. dollar remained firm against most major currencies, reflecting continued resilience in the U.S. economy.
Market Snapshot
Weekly performance across major global indices (week ending 26 Jun 2026):
| Index | Friday’s Closing Price | Weekly Change (%) | Direction |
| DJIA | 51,876.11 | 0.6 | ▲ |
| S&P 500 | 7,354.02 | -1.95 | ▼ |
| NASDAQ Composite | 25,297.62 | -4.6 | ▼ |
| FTSE 100 (UK) | 10,508.00 | 1.4 | ▲ |
| CAC 40 (France) | 8,384.87 | -0.43 | ▼ |
| STOXX Europe 600 | 635.88 | 0.04 | ▲ |
| Nikkei 225 (Japan) | 69,360.88 | -2.65 | ▼ |
| CSI 300 (China) | 4,868.22 | -1.48 | ▼ |
| Hang Seng (Hong Kong) | 22,671.86 | -5.24 | ▼ |
| Brent Crude | 71.99 | -9.84 | ▼ |
| Gold | 4,078.70 | -3.44 | ▼ |
Foreign Exchange
(For the week ending 26 Jun 2026)
| Pair | Friday’s Close | Week’s Change |
| EUR/USD | 1.1362 | -0.0097 |
| USD/JPY | 161.805 | 0.516 |
| GBP/USD | 1.3188 | -0.0014 |
| USD/CHF | 0.8105 | 0.0056 |
| AUD/USD | 0.6901 | -0.0112 |
U.S. Markets Overview
U.S. equity markets delivered mixed performances during the week as investors rotated away from high-growth technology companies and into more defensive sectors. The Dow Jones Industrial Average gained 0.60%, while the S&P 500 fell 1.95% and the NASDAQ Composite declined 4.60%, reflecting renewed pressure on AI and semiconductor-related stocks.
Despite equity market volatility, underlying economic data remained broadly constructive. Personal consumption expenditures (PCE), the Federal Reserve’s preferred inflation measure, continued to accelerate in May, while both consumer spending and personal income exceeded expectations, highlighting ongoing resilience in household demand. Business activity also improved for a third consecutive month, supported by stronger manufacturing and services activity.
Bond markets strengthened during the week as declining oil prices and inflation data broadly in line with expectations encouraged investors to increase exposure to U.S. Treasuries. The combination of resilient economic activity and moderating energy prices reinforced expectations that monetary policy decisions will remain highly data dependent in the months ahead.
European Markets
European equities were broadly stable despite mixed economic and political developments across the region. The STOXX Europe 600 edged 0.04% higher, while the UK’s FTSE 100 outperformed with a 1.40% gain. France’s CAC 40 declined 0.43% as weakness in global technology shares weighed on sentiment.
Inflation expectations across the eurozone continued to ease, providing some optimism that interest rate pressures may gradually moderate. Meanwhile, purchasing managers’ surveys suggested economic conditions remain uneven, with broader eurozone activity showing signs of stabilisation while Germany continued to experience softer private sector activity.
Attention remained on UK economic conditions as weaker retail sales and manufacturing data pointed to continued softness in domestic activity. while weaker retail sales and manufacturing data highlighted ongoing challenges facing the UK economy.
Asian Markets
Japan
Japanese equities declined over the week, with the Nikkei 225 falling 2.65% as profit-taking in AI-related technology shares spread across global markets. Although lower oil prices reduced inflationary pressures for the energy-importing economy and supported demand for Japanese government bonds, investors remained cautious amid continued weakness in technology stocks.
Inflation data from Tokyo reinforced expectations that the Bank of Japan may continue gradually normalising monetary policy. At the same time, the Japanese government announced a long-term investment strategy focused on artificial intelligence, semiconductors and strategic industries aimed at strengthening economic competitiveness through 2040.
China
Chinese markets also ended the week lower, with the CSI 300 declining 1.48% while Hong Kong’s Hang Seng Index fell 5.24%. Technology shares reversed earlier gains as regional investors reassessed elevated AI valuations, leading to broader weakness across Asian equity markets.
The People’s Bank of China announced the implementation of a new liquidity management framework designed to improve short-term monetary operations while leaving benchmark loan prime rates unchanged. Meanwhile, Premier Li Qiang reaffirmed China’s commitment to innovation-led growth, advanced manufacturing and continued economic opening during the World Economic Forum’s Summer Davos meeting.
Commodities
Oil
Brent crude oil recorded the largest weekly move among major asset classes, falling 9.84% as geopolitical risk premiums eased and supply concerns moderated. The decline helped reduce inflation expectations globally while providing support for government bond markets, particularly in energy-importing economies such as Japan.
Gold
Gold declined 3.44% over the week as easing geopolitical tensions reduced demand for traditional safe-haven assets. The stronger U.S. dollar and improved investor confidence also contributed to the retreat in precious metal prices.
Week Ahead
Investors will continue monitoring inflation developments, central bank policy expectations and upcoming economic data releases for further direction. Market participants will also remain focused on corporate earnings expectations, developments in artificial intelligence-related sectors, geopolitical risks and the outlook for global economic growth following another week of heightened market rotation.
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