_edited_edited.png)
Monday Afternoon Coffee - Markets Update - 16 June 2025 - Stocks Climb, Oil Drops as Middle East Tensions Cool and Central Banks Take Focus
- The Trade Academy Team
- Jun 16
- 2 min read
Markets Update: U.S. stocks rebounded Monday while oil prices slid, as easing fears over Middle East conflict and anticipation of a busy week of central bank meetings shaped investor sentiment.
Global Markets Roundup: 16 Jun 2025
Markets found relief after the Wall Street Journal reported Iran may be seeking to de-escalate hostilities with Israel. That helped reverse last week’s steep selloff in equities and surge in crude prices, which had been sparked by Iranian strikes and threats of retaliation.
Equities Rise, Oil Retreats from Highs
Major U.S. indexes climbed more than 1% in morning trade, tracking similar gains across Europe and Asia. Investors shrugged off geopolitical jitters, reassured that oil production and exports remain unaffected.
Dow Jones Industrial Average: +1.17%
S&P 500: +1.16%
Nasdaq Composite: +1.51%
Global Markets Rally, Central Banks in Spotlight
The MSCI All-Country World Index rose 1.09%, following gains in Chinese and European shares.
China’s blue-chip index advanced after data showed retail sales beat forecasts while industrial production met expectations. Europe’s STOXX 600 rose, led by a recovery in travel and Gulf stocks.
Upcoming data includes U.S. retail sales on Tuesday and weekly jobless claims moved forward to Wednesday due to a Thursday market holiday.
Central banks in Norway, Sweden, Switzerland, and Japan all meet this week. The Swiss National Bank is widely expected to cut rates to zero, possibly even below. The Bank of Japan is likely to hold steady at 0.5% while hinting at potential tightening later this year.
German 10-year Bund yields also fell, down to 2.52% from 2.536%.
Bond Yields Dip, Eyes on Fed
U.S. Treasury yields edged lower following Iran’s diplomatic overture. The benchmark 10-year yield slipped to 4.415% from 4.424% on Friday.
Federal Reserve officials meet Wednesday, with traders expecting a cautious tone as inflation risks tied to oil remain on the radar. Markets still price in two rate cuts by year-end, starting in September.
Currencies
Risk-sensitive currencies outperformed, led by gains in the Australian and New Zealand dollars:
AUD/USD: +0.9%
NZD/USD: +1.2%
USD/NOK: +0.3%, after hitting early-2023 highs
Oil prices, which had surged 7% on Friday, pulled back sharply:
WTI Crude (CL1!): -3.44% to $70.47/barrel
Brent Crude (BRN1!): -3.5% to $71.63/barrel
Gold Loses Shine
Gold prices fell as safe-haven demand eased:
Spot Gold: -1.04% to $3,396.59/oz
Outlook
Markets are cautiously optimistic as geopolitical risks appear contained and monetary policy takes center stage. But with inflation, oil, and central bank moves all in flux, volatility could return swiftly.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
