 Last week, global financial markets were heavily influenced by evolving expectations surrounding central bank monetary easing paths and unexpected political developments. British Pound emerged as the most significant gainer, buoyed by fading expectations of an immediate BoE rate cut in June. This shift was precipitated by latest inflation data and compounded by the UK government's unexpected decision to hold an election in July. This combination of factors not only boosted the Pound but also contributed to a downturn in FTSE. Dollar secured the position as the second strongest currency even though its momentum was relatively weak. Markets adjusted their expectations on Fed, moving away from anticipating a rate cut in September. This reassessment followed revelations from the hawkish tones in FOMC minutes and was supported by robust economic data. In the equity markets, results were mixed; DOW underperformed relative to S&P 500 and, notably, NASDAQ, which benefited from sector-specific dynamics... |
