Global Stock Markets: A Week of Central Bank Moves and Shifting Sentiments (Week Ending June 6, 2025)

Introduction: Navigating a Dynamic Week in Global Finance

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.¹ 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.

Global Pulse: Key Economic Indicators and Central Bank Decisions

A primary driver of global market sentiment during the week was the release of the U.S. jobs report for May. U.S. employers added 139,000 jobs, a figure that surpassed consensus forecasts of 130,000 and provided a significant boost to market confidence, not just in the United States but globally.² This positive data point from the world’s largest economy often has far-reaching implications. However, the backdrop of trade tensions, particularly concerning U.S. tariff policies, continued to simmer, with some analysts noting that these tensions had “resurfaced” ¹, acting as a potential constraint on sustained market optimism.

The week was particularly notable for the actions and commentary from several major central banks. These institutions play a critical role in shaping economic conditions and, consequently, market trends. The following table summarises the key monetary policy events:

Table 1: Key Central Bank Actions & Announcements – Week Ending June 6, 2025

The varied approaches of these central banks underscore a complex global economic environment. The strong U.S. jobs data, for example, provided a backdrop against which these decisions were made. For the European Central Bank, the relative health of the U.S. economy might have provided some leeway to be less aggressive in its forward guidance on easing, despite its own rate cut. The Reserve Bank of India, on the other hand, clearly prioritised domestic growth concerns with its substantial stimulus. Meanwhile, the Federal Reserve acknowledged the strength in its labour market but remained attentive to external risks like tariffs, which complicate its objectives of maintaining price stability and maximum employment. This divergence in policy paths and outlooks means investors are tasked with deciphering a nuanced global picture, rather than a universally synchronised trend.

Beyond specific announcements, such as the phone call between the U.S. and Chinese presidents, the broader theme of trade tensions and protectionist policies remains an influential undercurrent. References to past tariff events and the “on-again-off-again” nature of U.S. tariffs illustrate a volatile and unpredictable trade policy environment.¹ This ongoing uncertainty can act as a dampener on long-term investment and global growth, creating ripples across supply chains and potentially influencing inflation expectations, even if immediate market reactions to specific trade news are sometimes contained. The concern is that this latent risk can quickly escalate, overshadowing otherwise positive economic data.

Table 2: Major Index Performance – Week Ending June 6, 2025

(Note: Some weekly changes are estimated based on Friday’s move and available prior data if not explicitly stated for the full week. Some index closing values for DAX and CAC are approximated based on Friday’s percentage change from an estimated prior close, as precise end-of-week values were not consistently available across all sources for these specific indices.)

United States: Jobs Data Fuels Gains Amidst Political Noise

Market Performance Overview

U.S. stock markets concluded the week with notable gains, largely propelled by encouraging economic data released on Friday, June 6th. This performance solidified a second consecutive winning week for the benchmark S&P 500 index.2 On Friday, the S&P 500 rose by 61.06 points, or 1%, to close at 6,000.36, bringing it within 2.3% of its all-time record high. The Dow Jones Industrial Average also saw a significant advance, climbing 443.13 points (1%) to 42,762.87. The technology-heavy Nasdaq Composite gained 231.50 points (1.2%), finishing at 19,529.95.2

For the week ending June 6th, the positive momentum was evident across major indices. The S&P 500 registered a weekly gain of 0.5%. The Dow Jones Industrial Average was up 0.1% over the week. The Nasdaq Composite led the gains with a 1% increase, and the Russell 2000 index, which tracks smaller companies, rose by a healthy 1.5%.⁹ This broad-based advance, particularly the strength in technology stocks and smaller capitalisation companies, indicated a generally positive investor sentiment.

Impact of the May Jobs Report

A pivotal catalyst for the week’s market performance in the U.S. was the May jobs report. U.S. employers added a solid 139,000 jobs during the month.² This figure comfortably exceeded analysts’ expectations, who had forecasted an addition of around 130,000 jobs.³ The unemployment rate for May 2025 held steady at 4.2%, unchanged from the previous month.¹⁴

The jobs data was widely interpreted as a reaffirmation of the U.S. labour market’s resilience, especially considering ongoing uncertainties related to international trade policies.² This tangible evidence of economic strength appeared to give investors a significant reason for optimism. While markets had shown some caution prior to the report’s release ¹², the better-than-expected numbers triggered broad gains, with every sector in the S&P 500 rising on Friday.² This positive reaction occurred despite other simmering concerns, such as the ongoing trade tensions and political discourse, suggesting that fundamental economic strength, particularly in employment, can, at least for a period, outweigh more abstract or sentiment-driven risks.

However, there were some nuances in the labour market data earlier in the week. Initial jobless claims for the week ending May 31st rose by 8,000 to 247,000. This was the highest level recorded since October 2024 and surpassed expectations of 235,000 claims.³ While this data, released on Thursday, hinted at potential softening in the labour market, the more comprehensive monthly jobs report on Friday ultimately set the dominant positive tone for investors.

Federal Reserve Outlook and Treasury Yields

The Federal Reserve’s monetary policy stance remained a key focus for investors. Throughout 2025, the Fed has maintained a cautious approach. After implementing three rate cuts late in 2024, the central bank has since hesitated to ease policy further, balancing its efforts to control inflation, which has been hovering slightly above its 2% target, against the need to support economic growth.²

In a speech on June 5th, Federal Reserve Governor Adriana Kugler characterised the U.S. labour market as “resilient and stable,” with economic activity continuing to grow at a moderate pace.⁴ However, she also acknowledged potential headwinds, noting that “trade and other policy changes could raise the unemployment rate” and that higher import tariffs “could also raise inflation.” Governor Kugler described the Fed’s current monetary policy stance as “modestly restrictive” and “currently appropriate”.⁴

Despite the Federal Reserve’s official position and the strong jobs report, which typically reduces the urgency for monetary easing, many Wall Street traders continue to forecast that the central bank may need to cut interest rates later in the year to support the economy.² This divergence between the Fed’s current rhetoric, which emphasises a data-dependent and cautious approach, and persistent market expectations for future rate cuts creates an underlying tension. The strong jobs data, by making an immediate case for rate cuts weaker, arguably amplified this tension.

This dynamic was reflected in the U.S. Treasury market. Following the robust jobs report, Treasury yields rose, signalling diminished expectations for imminent rate cuts. The yield on the 10-year Treasury note climbed to 4.51% on Friday ², up from 4.39% late on Thursday.¹⁰ The 2-year Treasury yield, which is particularly sensitive to expectations of Federal Reserve policy, also increased.² This rise in yields aligns with the Fed’s current steady stance but conflicts with the market’s longer-term hopes for easing, highlighting a potential source of future market volatility if economic data continues to surprise to the upside or if the Fed maintains its restrictive posture longer than anticipated by market participants.

Influence of Political and Corporate Events

Specific political and corporate events also influenced market movements during the week. A public dispute between President Donald Trump and Tesla CEO Elon Musk garnered significant attention.5 The disagreement reportedly began with Musk’s criticism of a legislative bill supported by Trump and escalated with heated exchanges, including Musk allegedly calling for Trump’s impeachment and Trump threatening to cut government contracts with Musk’s companies.⁵ This feud directly impacted Tesla’s stock, which experienced a sharp 14% decline on Thursday.⁹ However, Tesla shares recovered some of these losses on Friday, rising between 3.7% and 5.9% according to different reports, after Musk reportedly indicated a willingness to de-escalate the situation.²

In other corporate news, Lululemon Athletica saw its shares plunge by 19.8%. The athletic apparel maker cut its profit expectations for the year, citing the negative impact of tariffs and increasing competition as key factors for the revision.² On a more positive note, Circle Internet Group, an issuer of a popular cryptocurrency, experienced a dramatic 29.4% surge in its stock price on Friday. This added to an extraordinary 168% gain on Thursday, the day of its debut on the New York Stock Exchange.²

US-China Trade Developments

Developments in US-China trade relations remained a closely watched area. President Trump announced that he had a “positive phone call” with Chinese President Xi Jinping concerning trade matters. He also stated that their respective teams would be meeting soon to continue discussions.5 Historically, signs of de-escalation in trade tensions and prospects of lower tariffs have been positive catalysts for markets.¹

However, the official assessment of the call from China, as reported by its state media, was described as “less enthusiastic”.¹² This difference in tone suggested that significant gaps might remain or that optimism should be tempered. In a related development, the U.S. Treasury Department released its semiannual report on currency practices of major trading partners. The report did not label any country as a “currency manipulator.” However, it did cite China for a “lack of transparency” in its currency practices and issued a warning that the Treasury would increase its vigilance regarding currency policies in the future.⁵

Europe: ECB Cuts Rates, Markets Digest Hawkish Undertones

Market Performance Overview

European stock markets generally concluded the week on a positive footing, with gains on Friday largely attributed to the robust U.S. jobs report, which bolstered investor confidence across the Atlantic.¹⁰ For the week, European equities overall were on track for their second consecutive week of gains, with an approximate increase of 0.8%.11 The UK’s FTSE 100 index reflected this trend, rising 0.8% for the week, while the FTSE 250 index added 0.6%.¹⁰

On Friday, the FTSE 100 closed up 0.3% at 8,837.91 points. In Paris, the CAC 40 index also rose, gaining 0.2%. However, Frankfurt’s DAX 40 index ended the day slightly lower, down 0.1%.¹⁰ Earlier in the week, on Thursday, European stock markets had a mixed close as investors digested the European Central Bank’s monetary policy announcement and accompanying commentary.⁷

European Central Bank (ECB) Rate Cut and Market Reaction

The most significant event in Europe during the week was the European Central Bank’s decision on interest rates, announced on Thursday, June 5th. The ECB cut its key interest rates by 25 basis points. This reduction brought the benchmark deposit facility rate down to 2.00%.⁵ This was the eighth time the ECB has cut rates since it began its current easing cycle in June 2024.6 The decision was widely anticipated and came as Eurozone inflation for May dipped to 1.9%, falling just below the ECB’s 2% target. ECB staff projections indicated an expectation of 2.0% inflation for 2025.5

Crucially, the commentary from ECB President Christine Lagarde that accompanied the rate cut was interpreted by markets as “hawkish.” President Lagarde suggested that the ECB was nearing the end of its rate-cutting cycle ⁵, stating, “I think we are getting to the end of a monetary policy cycle”.⁷ This was characterised by some analysts as a “hawkish surprise”.⁷

The market’s reaction clearly reflected this nuanced communication. Short-term European interest rates jumped higher as investors adjusted their expectations, pricing in fewer additional rate cuts from the ECB in the near future.⁵ The perceived probability of another rate cut by the ECB in September decreased following President Lagarde’s remarks.⁷

This “hawkish cut” represents a complex policy maneuver by the ECB. On one hand, the rate reduction itself provides some immediate support to the Eurozone economy, or at least fulfils prior market guidance. On the other hand, the accompanying cautious rhetoric signals a reluctance to commit to further aggressive easing. This stance could be driven by concerns about reigniting inflation, a desire to preserve monetary policy ammunition for potential future economic shocks, or perhaps influenced by the relative economic strength observed in other major economies like the United States. Such a delicate balancing act inevitably creates uncertainty about the future trajectory of European monetary policy. This could lead to increased volatility in European bond and currency markets as traders attempt to decipher the ECB’s true intentions. For instance, the Euro might experience more erratic trading, and previous expectations for currency pair movements, such as a bearish outlook on EUR/JPY based on anticipated further ECB cuts ¹, may now require reassessment. Furthermore, businesses planning investments could face greater uncertainty regarding future borrowing costs, potentially leading to delays in capital expenditure decisions. The ECB’s ability to clearly guide market expectations might also be tested if its communications are perceived as ambiguous.

Impact of US Economic Data on European Bourses

The stronger-than-expected U.S. nonfarm payrolls report released on Friday had a discernible positive impact on European market sentiment. The robust U.S. employment figures contributed to higher closing levels for many European indices.10 This reaction underscores the significant influence that the health of the U.S. economy can exert on investor confidence in European markets.

Currency Movements

Key European currencies exhibited notable movements against the U.S. dollar during the week, particularly on Friday following the U.S. jobs data. The Pound Sterling was quoted at USD1.3522 late on Friday in London, which was lower compared to its level of USD1.3596 at the close of equity trading on Thursday.¹⁰ Similarly, the Euro stood at USD1.1387, also down from USD1.1456 on the previous day.¹⁰ This strengthening of the U.S. dollar against major European currencies likely reflected the positive U.S. jobs report and the consequent rise in U.S. Treasury yields, making dollar-denominated assets relatively more attractive.

Against the Japanese Yen, the U.S. Dollar saw a significant jump, rising to JPY144.93 from JPY143.57.¹⁰ Earlier in the week, some financial institutions had expressed a bearish medium-term view on the EUR/JPY currency pair, partly based on an expectation of renewed disinflation in the Euro area potentially leading to more ECB rate cuts in the second half of the year.¹ President Lagarde’s somewhat hawkish tone following the ECB’s rate cut might lead to a re-evaluation of such currency strategies.

Asia-Pacific: Mixed Fortunes Across Key Markets

China & Hong Kong: Cautious Sentiment Amid Trade Talks and Domestic Focus

Market sentiment in China and Hong Kong during the week was primarily shaped by the ongoing US-China trade discussions and domestic economic considerations. The much-anticipated phone call between U.S. President Trump and Chinese President Xi Jinping yielded a “positive” description from the U.S. side but was met with a “less enthusiastic” portrayal from Chinese state media.12 This divergence led to a somewhat muted and cautious reaction in the markets. Hong Kong’s Hang Seng index slipped by 0.4% following the call 5, and on Friday, it registered a loss of 0.2% to close at 23,859.52 points. The Shanghai Composite index showed minimal movement, edging up by less than 0.1% to finish at 3,385.36 points.¹²

Despite this short-term caution, some analysts maintain a more optimistic long-term outlook for specific segments of the Chinese market. For instance, Standard Chartered expressed a view of potential upside in China equities (within the Asia ex-Japan category) over a 12-month horizon, with a particular preference for the Hang Seng Tech index. This optimism is rooted in expectations of potential earnings upgrades, the impact of domestic fiscal stimulus measures, and anticipated investment flows into Emerging Markets, possibly facilitated by a weaker U.S. dollar.¹ This suggests a degree of selective optimism, where investors might be looking beyond immediate geopolitical noise to identify fundamental growth drivers.

This perspective is maintained even as consensus earnings expectations for the broader MSCI China index for 2025 have been revised downwards to 6.3%, reflecting concerns over overall economic growth and the impact of tariff-related policies. However, earnings growth projections for 2026 remain notably resilient at 11.8%.¹ Specifically for the Hang Seng Tech index, earnings expectations for 2026 have been revised higher, to 24.6%, with current valuations considered attractive (a 12-month forward Price/Earnings ratio of 16.5x).¹ This focus on the tech sector, supported by government stimulus and strong forward-looking growth forecasts, indicates a belief that domestic drivers can, over time, potentially outweigh external pressures. It implies a more discerning investment approach towards China, rather than a monolithic reaction to trade headlines.

Separately, an incident involving a Hong Kong property developer delaying a coupon payment was assessed by some market observers as an idiosyncratic event, not indicative of systemic risk to the broader Asia U.S. dollar bond market.¹

Japan: Yen Movements and Bank of Japan Expectations

In Japan, Tokyo’s Nikkei 225 index registered a gain on Friday, rising by 0.5% to close at 37,741.61 points.¹² In the currency markets, the USD/JPY pair experienced volatility, rallying back towards the 144.00 level after finding support below 143.00 earlier in the week. This indicated a weakening of the Yen against a stronger U.S. dollar by the end of the week.⁵

Looking ahead, some strategists anticipate further appreciation of the Japanese Yen, driven by global economic growth uncertainties. There is also an expectation that the Bank of Japan (BoJ) may implement further interest rate hikes, as domestic inflation in Japan has continued to surprise on the upside and exceed the central bank’s 2% target.¹

A point of attention within Japan’s financial system concerns Japanese insurance companies. Reports indicated that these insurers have been significant purchasers of longer-dated Japanese Government Bonds (JGBs). Rising JGB yields have led to unrealised losses on these holdings, posing potential risks to their financial positions. However, it was also noted that current Japanese accounting principles, which allow for the use of the amortised cost method for valuing these assets, are seen as minimising the immediate impact of these yield fluctuations on the insurers’ reported capitalisation and earnings.¹

Other Notable Asian Market Movements

Elsewhere in Asia, South Korea’s Kospi index demonstrated strong performance on Friday, jumping 1.5% to close at 2,812.05 points.¹²

India: Markets Soar on Surprise RBI Rate Cut

Market Performance: Sensex and Nifty Propelled Higher

Indian equity markets experienced a significant upward surge during the week, with the primary impetus coming from a decisive monetary policy announcement by the Reserve Bank of India (RBI). On Friday, June 6th, the benchmark BSE Sensex jumped by 591.94 points in early trading to reach 82,033.98, while the NSE Nifty climbed 205.2 points to 24,956.10.⁸ This strong momentum continued throughout the day. By midday, the Sensex had surged over 750 points (an increase of 0.93%) to trade above the 82,200 mark. The Nifty 50 also extended its gains, climbing more than 240 points (1%) and trading just below the psychologically important 25,000 level.⁸

The Nifty ultimately closed above this key threshold at 25,003.05 points, marking a rise of 252.15 points from Thursday’s close of 24,750.⁸ The Sensex concluded the day at 82,188.99, an increase of 746.95 points from its previous close of 81,442.⁸ Adding to the positive sentiment, the India VIX, a measure of market volatility, eased further, slipping by 4.21% to 15.08. This decline indicated lower market anxiety and was interpreted by some analysts as a potential shift towards a “risk-on” sentiment among investors.¹⁸

Reserve Bank of India’s (RBI) Monetary Policy Impact

The principal catalyst for this robust market rally was the Reserve Bank of India’s monetary policy decision announced on Friday. The RBI delivered a larger-than-expected 50 basis point cut in the repo rate, bringing it down to 5.50%.8 This reduction took the repo rate to its lowest level in three years.⁸

This decisive action surprised market participants, who had broadly anticipated a more modest 25 basis point cut.⁸ The move marked the third consecutive rate reduction by the RBI, signalling a strong commitment to supporting economic growth.⁸ In addition to the repo rate cut, the RBI also announced a 100 basis point cut in the Cash Reserve Ratio (CRR). This measure is projected to inject approximately ₹2500 billion of liquidity into the banking system, further easing financial conditions.⁸

Significantly, alongside these easing measures, the RBI shifted its monetary policy stance from ‘accommodative’ to ‘neutral’.⁸ This recalibration is a crucial element of the announcement. While the aggressive rate and CRR cuts aim to invigorate economic activity, which had shown signs of slowing ⁸, the ‘neutral’ stance provides the RBI with important flexibility for future decisions. It signals that while substantial support has been provided, future policy actions will be strictly data-dependent, thereby preventing markets from forming expectations of an unending easing cycle. The RBI also revised its inflation forecast for the fiscal year 2026 downwards to 3.7%.⁸

This multifaceted strategic maneuver by the RBI—combining aggressive easing with a shift to a neutral stance—appears designed to maximise the immediate positive impact on growth and sentiment while prudently retaining policy flexibility. The surprise element of the deep rate cut likely amplified its stimulative effect. This dual approach positions India as proactively utilising monetary policy to address domestic economic concerns, potentially diverging from the more cautious stances of some other global central banks, while still maintaining a degree of prudence regarding future policy commitments.

Sectoral Responses

Rate-sensitive sectors were the primary beneficiaries of the RBI’s decisive monetary policy easing. Following the announcement, the Nifty Realty index surged by 2.80% in early trade on Friday. The Nifty Auto index also saw significant gains, rising by 1.14%, while the Nifty Bankex, which tracks banking stocks, added 0.98%.8 More broadly, stocks in the banking, financial services, and real estate sectors experienced substantial gains. This positive reaction was driven by the improved outlook for cheaper borrowing costs and the potential for enhanced credit growth, both of which are direct consequences of the RBI’s actions.8

Oceania: Australian Market Pauses After Winning Streak

Market Performance: ASX 200 Ends Gains

After a period of sustained positive performance, the Australian stock market experienced a slight pullback during the week ending June 6, 2025. Australia’s benchmark S&P/ASX 200 index closed 0.3% lower at 8,515.70 points on Friday.12 This decline marked an end to four consecutive weeks of gains for the index, suggesting a pause in its recent upward momentum.13

Similarly, in New Zealand, the benchmark S&P/NZX 50 index also slipped marginally, finishing Friday’s session at 12,563.48 points.¹³

Influencing Factors: Trade News, Commodities, and Sector Movements

Several factors contributed to the Australian market’s performance during the week. The unresolved nature of the phone call between U.S. President Donald Trump and Chinese President Xi Jinping regarding trade issues weighed on market sentiment.13 Given that China is Australia’s largest export partner, developments in US-China trade relations are closely watched by Australian investors.

Mining stocks, which form a significant component of the Australian market, initially rose during the week but later trimmed their gains, closing 0.2% lower overall.¹³ In contrast, energy stocks bucked the broader downward trend on Friday, ending the session 0.7% higher. This rise was largely driven by advances in coal miners. Whitehaven Coal was a notable performer in this sector, with its shares rising 3.6% after Morgan Stanley maintained an “overweight” rating on the stock, citing expectations of operational improvements and cost-cutting efforts.¹³

Technology stocks listed on the ASX led the losses, declining by 0.7%. This movement tracked the performance of their U.S counterparts and was partly attributed to the significant slump in Tesla shares following the public feud between Elon Musk and President Trump.¹³ The domestic financial index also slipped by 0.4% on Friday, marking its second consecutive session of losses. However, looking at the week as a whole, this sub-index managed to gain 2.4%, supported by underlying hopes that potential further monetary easing could boost lending volumes.¹³

Australian Dollar (AUD) Movements

The Australian Dollar (AUD) exhibited notable price action and was a focus for currency traders during the week. The AUD/USD pair was observed trading just below a major resistance level for the fifth consecutive week. It appeared to be carving out its June opening range around its 52-week moving average, indicating a period of consolidation and indecision in the market.¹⁹

Earlier in the week, the AUD/USD currency pair had briefly touched six-month highs at 0.6537 before retreating to trade around the 0.6500 level.⁵ Technical analysts noted that the broader rally in the Australian Dollar since April is considered vulnerable as long as the price remains below the key resistance zone, cited around 0.6511/50 and more broadly 0.6550.¹⁹ This prolonged period of consolidation, spanning five weeks below a significant technical barrier, often suggests that the market is awaiting a new catalyst to determine its next substantial directional move. The outcome appears heavily dependent on external factors, particularly upcoming U.S. inflation data (Consumer Price Index), rather than purely domestic Australian economic drivers at this juncture.¹⁹ A strong U.S. inflation reading could bolster the U.S. dollar and push the AUD/USD pair lower, while a weaker reading might provide the impetus for the Australian dollar to break through the resistance. This highlights the AUD’s sensitivity to global macroeconomic developments, especially those emanating from the United States.

Conclusion: Key Takeaways from a Dynamic Week

The week ending June 6, 2025, was characterised by a complex interplay of central bank actions, key economic data releases, and persistent geopolitical undercurrents, leading to varied performances across global stock markets.

A primary theme was the divergence in monetary policy. The European Central Bank executed a widely anticipated rate cut but coupled it with “hawkish” commentary, signalling a potential end to its easing cycle. In stark contrast, the Reserve Bank of India delivered an unexpectedly aggressive stimulus package, including a significant repo rate cut and a reduction in the Cash Reserve Ratio, aimed at boosting domestic growth. Meanwhile, commentary from a U.S. Federal Reserve official underscored a continued cautious and data-dependent stance, acknowledging economic resilience but also highlighting ongoing risks from tariffs.

The U.S. economy demonstrated notable strength, particularly through a robust May jobs report that surpassed expectations. This provided a significant boost to global market sentiment, temporarily overshadowing some underlying concerns. However, anxieties regarding the full impact of U.S. tariffs and the future direction of Federal Reserve policy lingered.

Trade and geopolitical factors remained influential. US-China trade discussions continued to be a focal point, with mixed signals emerging from a high-level phone call. Events such as the public feud between President Trump and Elon Musk also injected short-term volatility, particularly into the affected stocks and related sectors.

Regional market reactions were diverse. India’s stock market surged impressively, fueled by the RBI’s domestic policy stimulus. U.S. markets posted solid weekly gains on the back of positive economic news. European markets navigated the ECB’s nuanced messaging with cautious optimism, supported by positive spillover from U.S. data. In the Asia-Pacific region, markets showed mixed performance, with China and Hong Kong reacting cautiously to trade news, while Australia saw a pause in its recent rally. The Australian Dollar, meanwhile, remained at a critical technical juncture, highly sensitive to forthcoming international economic data.

Looking ahead, investors will likely focus on several key factors. Forthcoming inflation data from major economies, particularly the U.S. Consumer Price Index, will be crucial in shaping expectations for central bank policy. Further communications from central bank officials will be scrutinised for any shifts in tone or outlook. Finally, any significant developments in international trade negotiations or other geopolitical events will continue to have the potential to influence market sentiment and direction.

Disclaimer

This article is for informational purposes only and should not be considered as financial or investment advice. The information provided is general in nature and does not take into account your personal objectives, financial situation, or needs. All investing involves risk, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

References

1. Weekly Market View – 6/6/2025 – Standard Chartered, accessed on June 7, 2025, https://www.sc.com/bw/market-outlook/weekly-market-view-6-6-2025/?mvog=1
2. Wall Street gains ground following a solid jobs report and marks …, accessed on June 7, 2025, https://www.toledoblade.com/business/stock-market/2025/06/06/wall-street-jobs-winning-week-tech-tesla-circle-internet/stories/20250606116
3. The number of Americans filing for jobless benefits last week rises to highest level in eight months, accessed on June 7, 2025, https://apnews.com/article/unemployment-benefits-jobless-claims-layoffs-labor-795ec07804ed3f35eb702af27c4983d0
4. Speech by Governor Kugler on the economic outlook and monetary policy – Federal Reserve Board, accessed on June 7, 2025, https://www.federalreserve.gov/newsevents/speech/kugler20250605a.htm
5. Market Quick Take – 6 June 2025 | Saxo, accessed on June 7, 2025, https://www.home.saxo/content/articles/macro/market-quick-take—6-june-2025-06062025
6. Interest rates and monetary policy: Economic indicators – The House of Commons Library, accessed on June 7, 2025, https://commonslibrary.parliament.uk/research-briefings/sn02802/
7. LONDON MARKET CLOSE: European stocks mixed after hawkish ECB rate cut – Morningstar, accessed on June 7, 2025, https://www.morningstar.co.uk/uk/news/AN_1749139504979936300/london-market-close-european-stocks-mixed-after-hawkish-ecb-rate-cut.aspx
8. Sensex & Nifty Live Updates Today: Stock Market Trends & Key …, accessed on June 7, 2025, https://groww.in/blog/sensex-and-nifty-live-updates-today-6th-june-2025
9. How major US stock indexes fared Thursday, 6/5/2025, accessed on June 7, 2025, https://apnews.com/article/wall-street-stocks-dow-nasdaq-8b932c5e997b560bb83434b27ae4136d
10. LONDON MARKET CLOSE: Europe ends largely higher …, accessed on June 7, 2025, https://www.morningstar.co.uk/uk/news/AN_1749225705604376000/london-market-close-europe-ends-largely-higher-after-us-jobs-report.aspx
11. All Eyes On DC: 3 Things Investors Should Watch | J.P. Morgan, accessed on June 7, 2025, https://www.jpmorgan.com/insights/markets/top-market-takeaways/tmt-all-eyes-on-dc
12. Wall Street opens higher following a solid jobs report, accessed on June 7, 2025, https://apnews.com/article/stocks-markets-musk-china-trump-61087505f58835e3c2e59ff51204f437
13. Australia shares end lower in choppy trade after Trump-Xi call; log …, accessed on June 7, 2025, https://www.livemint.com/market/stock-market-news/australia-shares-end-lower-in-choppy-trade-after-trump-xi-call-log-fourth-week-of-gains-11749194233514.html
14. Employment Situation News Release – 2025 M05 Results – Bureau of Labor Statistics, accessed on June 7, 2025, https://www.bls.gov/news.release/archives/empsit_06062025.htm
15. Elon Musk and President Trump Feud Impacts Tesla, SpaceX | Bloomberg Technology 6/5/2025 – YouTube, accessed on June 7, 2025, https://www.youtube.com/watch?v=twFO7qaGMxU&pp=0gcJCbIJAYcqIYzv
16. ECB cuts benchmark interest rate by quarter point as Trump tariffs threaten economy, accessed on June 7, 2025, https://apnews.com/article/europe-trade-war-trump-ce797e9968df2af9fa5be449cc5ea30a
17. ECB Cuts Interest Rates Amid Below-Target Inflation – Morningstar, accessed on June 7, 2025, https://www.morningstar.com/markets/ecb-cuts-interest-rates-amid-below-target-inflation
18. Stock market today: Trade setup for Nifty 50 to RBI MPC meeting; eight stocks to buy or sell on Friday — 6 June 2025 – Mint, accessed on June 7, 2025, https://www.livemint.com/market/stock-market-news/stock-market-today-trade-setup-for-nifty-50-to-rbi-mpc-meeting-eight-stocks-to-buy-or-sell-on-friday-6-june-2025-11749173240632.html
19. Australian Dollar Forecast: AUD/USD Bulls Halted at Resistance – FOREX.com, accessed on June 7, 2025, https://www.forex.com/en/news-and-analysis/australian-dollar-forecast-aud-usd-bulls-halted-at-resistance-6-6-2025/