Global Market Weekly Review: Geopolitical Tensions and Central Bank Divergence Dominate the Week Ending June 20, 2025
The week ending June 20, 2025, was characterised by a tense tug-of-war between escalating geopolitical risks in the Middle East and a widening divergence in monetary policy among the world’s major central banks. Global equity markets struggled for clear direction as investors grappled with these conflicting forces. A palpable flight to safety was evident across asset classes, with heightened volatility, a stronger U.S. dollar, and a surge in gold prices. This risk-off sentiment was primarily fueled by an intensifying conflict between Israel and Iran, which overshadowed economic data and corporate earnings for much of the week.