InsightJune 22, 2026

Weekly market report: June 22, 2026

USA

During 15–21 June 2026, U.S. markets were driven mainly by the Fed and geopolitics. The FOMC kept the federal funds rate unchanged at 3.50–3.75%, noting solid economic activity but inflation still above the 2% target. Initial jobless claims remained contained at around 229k, supporting the view of a resilient labor market. Stocks were volatile after the Fed signaled no near-term easing, but AI/semiconductor strength and improved earnings expectations supported risk appetite. The S&P 500, Nasdaq and Dow Jones ended the week near record levels, with tech leading while rate-sensitive sectors lagged.

Europe

European equities benefited early in the week from easing Middle East concerns, with the STOXX Europe 600 reaching an all-time high on 15 June. However, inflation data limited upside: euro area annual inflation rose to 3.2% in May from 3.0% in April, keeping pressure on the ECB to stay cautious. The STOXX 600, FTSE 100, DAX 40, CAC 40 and IBEX 35 closed the week mixed but broadly resilient, as lower oil-risk premiums helped sentiment, while higher inflation and bond yields capped gains.

Japan

Japan outperformed, supported by AI-related exporters, corporate reform momentum and a weaker-yen tailwind. The Nikkei 225 briefly moved above 70,000 for the first time, while the TOPIX also advanced. Macro data were mixed: May core CPI rose 1.4% YoY, still below the BOJ’s 2% target, but producer- cost pressure from energy remained a concern. This helped Japanese equities rally despite the risk of tighter BOJ policy and higher imported inflation.

China

China’s data showed a clear imbalance: industrial production rose 4.5% YoY in May, helped by exports and high-tech manufacturing, but retail sales fell 0.6% YoY, highlighting weak domestic demand and pressure from the property sector. Fixed-asset investment also weakened, while the PBOC kept the 1- year LPR at 3.00% and 5-year LPR at 3.50%, signaling caution rather than aggressive easing. The Shanghai Composite was relatively stable but lacked strong momentum, while the Hang Seng underperformed as weak consumption, property concerns and geopolitical risk weighed on sentiment.

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