Week in Review for the week ending Friday, June 13, 2025

🌎 Global Economic Headline

Heightened Geopolitical Tensions & Market Volatility:

• Middle East Conflict: An escalation of conflict between Israel and Iran, involving attacks on nuclear facilities and retaliatory drone strikes, significantly impacted global markets.

• Market Downturn: This escalation led to a substantial market downturn globally, with stocks retreating and a flight to safe-haven assets.

• Soaring Oil Prices: Oil prices jumped sharply due to concerns over disruptions to the flow of crude from the region, with Brent crude futures rising 7%. Some reports indicated a jump as high as 13% in oil futures.

• Stocks Slump: Major stock indices like the S&P 500, Nasdaq, and Dow Jones Industrial Average experienced significant declines. The Dow lost 770 points, and the S&P 500 fell 1.1% on Friday, wiping out its weekly gains. 

  
  

Trade Policy Developments:

• U.S.-China Trade Deal: Investors were initially optimistic about the potential for a trade deal between the U.S. and China, which helped ease global tariff tensions.

• Improved U.S. Consumer Sentiment: A preliminary University of Michigan survey showed improved consumer sentiment in the U.S., potentially due to the prospect of a trade truce with China. Inflation expectations also eased. 

  
  

Economic Indicators:

• World Bank Global Growth Forecast: The World Bank cut its global growth forecast for 2025 to 2.3% due to concerns over rising tariffs and ongoing uncertainty.

• U.S. Consumer & Producer Prices: Consumer prices edged higher by 0.1% in May, while producer prices also rose by 0.1%.

• Consumer Debt & Wholesale Inventories: Consumer debt balances expanded, and wholesale inventories rose.

• Canadian Youth Job Market: Youth in Canada, especially Alberta, faced a tough job market due to factors like increased labor force entry and cautious hiring. 

  
  

Central Bank Expectations:

• Federal Reserve: Investors anticipated the Federal Reserve to keep interest rates steady at its upcoming meeting, with expectations for two rate cuts before year-end, likely starting in September. 

  
  

Other Factors:

• Increased Risk Aversion: Investors displayed caution, leading to increased activity in the Cboe Volatility Index (VIX).

• Energy and Defense Stocks Gained: Energy and defense stocks saw gains due to the geopolitical uncertainty.

• Airline Stocks Suffered: Airline and transportation stocks were negatively affected by the spike in oil prices. 

  
  

In essence, the global economy during the week ending June 13, 2025, was largely shaped by the escalating conflict in the Middle East, leading to market volatility and a sharp rise in oil prices. Despite this, some positive signs emerged, such as improved U.S. consumer sentiment and the prospect of a US-China trade deal. 

Markets closed the week on a cautious footing as Middle East tensions—Israel’s strike on Iran—and soft economic signals in Europe stirred investor anxiety. Safe-haven assets like gold, crude oil, and U.S. Treasuries saw notable inflows amid volatility.

📈 U.S. & Canada Exchanges

• Dow Jones Industrial Average – 42,197.79, down 1.8% for the week

• S&P 500 – 5,976.97, down 1.1%

• Nasdaq Composite – 19,406.83, down 1.3%

• S&P/TSX (Canada) – 26,504.30

• S&P/TSX 60 – 1,746.01

  
  

Europe Markets

• CAC 40 (France) – 7,6824.68, down ~1.0%

• DAX (Germany) – 23,516.20, down ~1.3%

• FTSE 100 (UK) – 8,850.63, down 0.7%

  
  

🌏 Asia-Pacific Markets

• Nikkei 225 (Japan) – 37,834.25, down 0.9%

• Hang Seng (Hong Kong) – 23,892.56, down 0.6%

• Shanghai Composite (China) – 3,377.00, down 0.8%

  
  

🔗 Notable Cryptocurrency News

• Bitcoin: ~$105,000 — remained steady amid risk-off sentiment.

• Ethereum: ~$2,533.

• XRP: ~$2.18.Crypto markets were largely range-bound this week amid global uncertainty.

  
  

🌾 Commodity & Agricultural Highlights

• Agricultural: No major USDA updates this week—crop and weather outlooks remained stable.

• Crude Oil (WTI): $73.18/barrel, up ~7.3% on Middle East tensions

• Gold: $3,452.60/oz, up ~1.5% as investors sought safe-haven assets

  
  

💵 Bond Market News

• U.S. 10‑Year Treasury Yield: 4.41%, rising on geopolitical concerns

• U.S. 30‑Year Treasury Yield: ~4.90% (same trend).

  
  

🔭 Closing Statement & Looking Ahead

This week’s markets were dominated by geopolitical risk, especially Israel‑Iran military developments, which pushed investors into traditional safe-haven assets—oil, gold, and government bonds—while equity markets retreated. As we head into next week, key drivers include:

• U.S. consumer price data

• Additional geopolitical headlines

• Earnings from major tech and industrial companies

Investors should brace for continued market volatility and monitor macro signals closely.

Disclosure: The information provided herein is for informational purposes only and should not be construed as investment advice. Market conditions are subject to change, and past performance is not indicative of future results. Please consult with a financial advisor before making any investment decisions.