Weekly market report: June 17, 2026

USA

The BLS reported May CPI rose 0.5% MoM and 4.2% YoY — the highest annual inflation rate since April 2023, driven overwhelmingly by energy costs. PPI for final demand advanced 6.5% YoY in May, with goods prices up 2.8%. Initial jobless claims for the week ending 7 June rose to a three-month high of 229,000, above consensus of 219,000. Oracle shares fell despite strong Q4 results showing impressive cloud momentum, as ever-rising capex pushed free cash flow further negative. Adobe fell 8% on CFO departure news despite record revenue of $6.62B in Q2. SpaceX debuted on Nasdaq on 12 June targeting a $1.75–$2T valuation, the largest IPO in history. The week ended with President Trump confirming on 14 June that the U.S. and Iran had reached a deal to end the conflict and reopen the Strait of Hormuz. The S&P 500 closed near 7,431 (+0.5%), Nasdaq near 25,889 (+0.3%), and the Dow near 51,202 (+0.7%).

Europe

European equities gained despite the ECB’s first rate hike since 2023: STOXX Europe 600 +1.69%, FTSE 100 +1.00%, CAC 40 +1.61%, while DAX fell 0.50%; IBEX 35 was supported by banks and broader risk recovery. The ECB raised rates and cut its 2026 GDP forecast to 0.8%, while projecting inflation at 3.0% in 2026. Eurozone PMI stayed weak, with composite PMI at 48.5, signaling contraction. UK GDP fell 0.1% MoM in April. Markets were initially pressured by energy inflation and Middle East risks, but recovered on peace-deal optimism.

Japan

Japanese equities underperformed: Nikkei 225 −0.85%, TOPIX −1.70%. Q1 GDP was revised down to +1.8% annualized from +2.1%, mainly due to weaker capex. May corporate goods prices rose 6.3% YoY, above expectations, reflecting higher oil, utilities, chemicals and import costs. PMI remained expansionary but softer, with Japan composite PMI at 51.1. Investors positioned ahead of the BOJ meeting, expecting a hike to 1%, while yen weakness near ¥160/USD and Middle East energy risks weighed on sentiment.

China

China's CPI held at 1.2% YoY in May, unchanged from April, with non-food inflation edging higher on transport costs. China's PPI surged 3.9% YoY, the highest since July 2022, driven by Iran-war raw material costs and AI demand. China's exports rose 19.4% YoY in May and the trade surplus widened to USD 105.4 billion; the CSI 300 fell 0.82% while the Shanghai Composite rose 0.09%, and the Hang Seng declined 0.98% for the week before rallying Friday on ceasefire news.

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