Global markets were shaped by sectoral rotation, moderating US growth signals, and selective repricing across commodities and
speculative assets, alongside key central bank and geopolitical developments during the week.
Key Themes
- Recent US data suggests the job market is slowing. Hiring was weak (ADP +22k; typically, ~150K seen as a number for healthy economy) and layoffs rose to their highest level (108k) since 2009. However, manufacturing activity improved and moved back into expansion (ISM at 52.6). Overall, this points to the economy cooling down rather than heading into a recession.
- Major central banks around the world, including the European Central Bank and the Bank of England, kept interest rates unchanged. However, some members of the Bank of England supported cutting rates, which has increased expectations that rate cuts may happen in the coming months.
- Equity markets exhibited clear rotation: US mega-cap technology underperformed while cyclicals, value, Europe and Japan outperformed, reflecting positioning adjustments rather than broad risk aversion.
- Oil prices declined on US–Iran diplomatic progress, compressing the geopolitical risk premium, while Bitcoin experienced sharp volatility, highlighting continued repricing in high-beta and speculative segments.
