USA

During the last week, U.S. markets demonstrated resilience, supported by strong corporate earnings and encouraging economic indicators. Inflation data showed June CPI rose by 2.7% year-on-year, in line with expectations, while core inflation stabilized at 2.9%. Initial jobless claims declined to 221,000, signaling continued labor market strength, and June retail sales surpassed forecasts with a 0.6% monthly increase. Major indices reflected this optimism—Nasdaq set five consecutive record highs, S&P 500 closed the week up by 0.6%, and Dow Jones fluctuated, finishing slightly lower amid tariff concerns. The start of the Q2 earnings season saw robust results, especially from financials, technology, and industrials, offsetting the market’s initial caution caused by fresh 30% tariff threats from the Trump administration, now postponed to August 1.

Europe

European markets enjoyed a positive week, underpinned by strong earnings momentum and stable macroeconomic data, despite lingering trade tensions with the U.S. The STOXX Europe 600 gained around 1.6% weekly, driven by outperformance in banks, industrials, and energy sectors. Germany’s DAX 40 was the standout performer, rising over 3% on the back of favorable corporate updates, while FTSE 100, CAC 40, and IBEX 35 also posted moderate weekly gains. Although there were no major CPI or GDP releases, markets digested upcoming ECB policy decisions and were briefly unsettled by tariff headlines. EU-Russia sanctions tightened, fueling gains in energy names. European equities, however, maintained momentum as investors focused on the region’s corporate strength and paused retaliatory tariffs in response to U.S. trade threats.

Japan

Japanese markets faced political headwinds after the ruling Liberal Democratic Party unexpectedly lost its majority in local elections, triggering uncertainty over future fiscal and economic policies. This political shock led to a strengthening yen as risk appetite softened, contributing to subdued market performance. The Nikkei 225 and TOPIX indices traded mixed, pressured by the political developments and a lack of key domestic economic releases during the week. Investor sentiment remained cautious, awaiting fresh economic indicators such as PMI data and further clarity on government stability. The political backdrop, combined with a holiday-shortened week, kept Japanese equities relatively range-bound, underperforming global peers.

China

Chinese markets delivered a muted performance despite a positive GDP surprise. Q2 GDP expanded by 5.2% year-on-year, slightly above consensus estimates, but underlying economic concerns persisted, including weak consumer demand and deflationary pressures. June CPI rose by a modest 0.1% YoY while PPI fell sharply by 3.6%, its fastest decline in two years, highlighting ongoing pricing weakness. The Shanghai Composite posted marginal gains, helped by a stable policy stance from the PBOC, while the Hang Seng index remained range-bound, weighed by external tariff risks and lackluster internal momentum. Although the GDP beat offered some relief, Chinese equities remained constrained by sluggish domestic consumption and trade-related tensions.