The Week That Was

Global Equity markets fell 1.3%, reflecting a rotation by investors out of technology particularly highly rated semiconductor names in the US and Asia. The S&P 500 fell 1.9% reflecting concerns over tech memory costs, however the equal weighted index climbed by 1.6% with Healthcare and Real Estate among the best performers.

The impact of the tech rout was more muted in Europe where equities ended the week flat, thanks to the sector’s low relative weight, strong idiosyncratic stock moves from the likes of Bayer (+25%) following a legal win on Roundup combined with a fall (10.7%) in Brent Oil back within touching distance of pre-war levels at $72 a barrel. This weakness contributed to a 2.4% decline in global commodities, which were also negatively impacted by continued declines in precious metals. This decline in commodity prices also contributed to traders cutting their rate hike bets resulting in global bonds climbing 1.1% higher on the week.

Summary Economic Releases

The Week Ahead

Asian markets traded broadly flat this morning, as weakness in the technology sector offset a modest improvement in geopolitical sentiment. A renewed commitment between the US and Iran to halt strikes and resume talks later this week is helping to keep Brent crude near recent lows whilst also prompting a small rally in EUR/USD to around 1.14. However, the announcement of a $1.3 trillion AI investment by Samsung (-3.2%) and SK Group (-2.9%) failed to arrest the rotation out of the sector as investors experienced AI fatigue.

In what is a holiday-shortened week for markets, geopolitical and macro developments are likely to be the key drivers of sentiment. On Tuesday, US consumer confidence is expected to have nudged higher in June following a moderation in fuel prices. Wednesday should bring confirmation that the pace of the expansion in the US manufacturing sector is expected to have moderated very slightly in June as companies ran down inventories.

In addition, Eurozone core inflation is expected to decline to 2.5% for the month of June, clues as to whether this results in less hawkish monetary policy may be evident when President Lagarde speaks at a central bank forum in Portugal on the same day. Thursday’s June Non-Farm Payrolls is the marquee event for markets this week and with 111K jobs expected to be created, a flat unemployment rate along with evidence that job vacancies remain in line with the number of unemployed, it could bolster the case for a US interest rate increase later this year.

Corporate news flow remains light as markets move through an air pocket ahead of the Q2 earnings season, which commences in mid‑July. Nonetheless, ABF will release a trading statement where investors will be hoping for a rebound in demand at Primark and any evidence of easing input prices across the business.

In addition, results from Nike will be closely watched for evidence that strength in North American sales can offset weakness in China and that the group’s turnaround plan is bearing fruit. Looking ahead, the upcoming earnings season is expected to be robust, with consensus forecasts for S&P 500 companies pointing to approximately 22% year-over-year earnings growth for Q2 2026, up from around 18–19% at the end of March, reflecting positive estimate revisions.

Written by John Mullane, CIO, Cantor Fitzgerald Ireland

This is an extract from the Weekly Markets Report by Cantor Fitzgerald Ireland. For more detail on individual securities, or to discuss how we can support your investment needs, please get in touch.