This global market summary reviews the major market drivers, including Powell’s Senate testimony, the ongoing oil recovery, and a Bitcoin breakout. With equities holding near record levels and central banks signaling caution, investors are now focused on the upcoming CPI and GDP releases to gauge future monetary moves.
Global Market Summary: Fed Caution Meets Crypto Optimism
Financial markets responded positively to a series of developments including Fed Chair Powell’s measured tone, easing geopolitical tensions, and strong performance in risk assets. U.S. indices approached new highs, while Bitcoin jumped nearly 3% and Brent crude climbed on rising gasoline demand.
The euro surged to its highest since 2021, while gold saw modest gains amid dollar softness.
Powell’s Senate Remarks Shift Market Expectations
Fed Chair Jerome Powell emphasized that rate cuts are possible by September but stressed they remain data-dependent. He defended the Fed’s interest-on-reserves framework as essential for rate control and pushed back on criticism surrounding the $2.4 billion Fed building upgrade. He warned that Trump’s proposed tariffs could reintroduce inflation pressures, reinforcing a cautious stance moving forward.
Europe, UK, and Asia: Currency Strength and Growth Risks
European markets showed mixed results as investors weighed the ceasefire and U.S. tariff risks. The euro and pound both appreciated, offering relief to inflation pressures in the UK. China reiterated its 5% growth target, though flagged U.S. tensions as a threat. Japan’s central bank remained split, with debate over whether to hold or hike rates.
Global Market Summary: Oil Rebound and Digital Asset Strength
Brent crude rose 0.8% to $67.68 and WTI climbed to $64.92 after U.S. inventories fell by 5.8 million barrels. Gold edged higher to $3,328/oz amid safe-haven demand. Bitcoin surged to $107,920, just 4% shy of its all-time high. Ethereum, Solana, and XRP followed suit, while crypto stocks like Coinbase and MicroStrategy posted solid gains.
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