Finance The Week That Was

The week ending June 13, 2025, will be etched in the memory of global investors as a stark reminder of the primacy of geopolitical risk. What began as a period of cautious optimism, carefully constructed on a foundation of encouraging inflation data from the United States and dovish central bank policy in Europe, was violently upended in the final trading session. The narrative of the week, and potentially the weeks to come, was irrevocably redefined by a single, seismic event: reports of Israeli military strikes on nuclear and military facilities within Iran.1

The week ending June 6, 2025, presented a dynamic and multifaceted landscape for global financial markets. Investors navigated a period marked by significant monetary policy decisions from key central banks, influential economic data releases that painted a mixed picture of global health, and persistent geopolitical undercurrents that continued to shape sentiment. While the MSCI All Country World Index, a broad gauge of global equities, touched a record high during the week, signalling a degree of underlying investor confidence, this optimism was frequently tested by emerging factors. Markets worldwide exhibited varied performances as they digested these developments, highlighting the complex interplay of local and international forces. This report will examine the key events and market reactions across major global regions, providing an overview of a week where central bank actions and economic indicators took centre stage.

The week ending May 30, 2025, presented a complex and often turbulent landscape for global stock markets. The dominant theme was the ongoing “tariff saga” 1 involving the United States and China, which cast a long shadow over investor sentiment worldwide. Market participants found themselves reacting to a rapid succession of legal developments concerning US tariffs, creating an undercurrent of caution that rippled across international exchanges. While some markets, notably in the United States, demonstrated resilience and posted gains, others, particularly across Asia, faced significant headwinds. Adding to the intricate picture were key economic data releases, including crucial inflation reports and GDP figures, alongside central bank commentary and actions, all of which played pivotal roles in shaping the week’s market performance.

The trading week ending May 23, 2025, was marked by a significant uptick in investor anxiety and notably divergent performances across global stock markets. A primary catalyst for this widespread unease was the sharp revival of trade war concerns, predominantly ignited by new tariff threats emanating from the U.S. administration.This development cast a shadow over markets that had, in previous weeks, found some solace in what appeared to be a softening of trade rhetoric.

The week ending May 16, 2025, was largely characterised by a significant uplift in global investor sentiment, primarily ignited by a landmark 90-day agreement between the United States and China to pause most of their punitive tariffs. This “tariff truce” acted as a powerful catalyst, propelling many global equity indices to notable weekly gains. The US agreed to reduce tariffs on Chinese imports from 145% to 30%, while China committed to lowering tariffs on US goods from 125% to 10% for the 90-day period. This development eased immediate concerns about escalating trade tensions that had previously cast a shadow over the global economic outlook.

The week ending May 9, 2025, presented a complex tapestry for global financial markets. Investor sentiment oscillated in response to a confluence of factors, including ongoing international trade negotiations, pivotal central bank policy decisions, and escalating geopolitical tensions in certain regions. While some markets found support in stimulus measures or positive earnings, others grappled with uncertainty and risk aversion. This report will dissect the performance and key drivers across major economic zones.