Week Preview: Are the Dollar and Equities Set for a Pullback?
Market Trends Influenced by Global Developments
Investor confidence was boosted by advancements in US-Iran talks and the establishment of a ceasefire between Israel and Lebanon. As a result, both the S&P 500 and Nasdaq in the United States achieved unprecedented highs, continuing their upward momentum over several weeks.
Meanwhile, June WTI crude oil experienced a sharp decline, dropping 7.6% last week following an 8.6% decrease the week before. The price briefly fell below $79 per barrel, a significant reduction from its March 9 peak of approximately $104.35.
Shifts in interest rate expectations were also observed. In Europe, two-year government bond yields decreased by 20 to 25 basis points over the week, while US two-year yields saw a smaller decline of 7 to 8 basis points. Japan’s two-year yield edged down by nearly three basis points, but the swaps market exhibited far more pronounced changes.
Disclaimer: The content of this article solely reflects the author’s opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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