- Due to Juneteenth, the US stock market remained closed today.
- Global markets are still weighed down by the conflict in the Middle East, although a full-scale war is not yet being priced in. Investor concerns are reflected in slight price reductions, which don't resemble the sharp index drops typical of rising geopolitical tensions.
- Donald Trump has yet to clearly define US policy regarding the Middle East conflict. Meanwhile, Israel and Iran have escalated their exchange of fire. Iranian rockets struck an Israeli hospital, and Israel continues shelling Tehran's nuclear targets.
- Major European indices are recording losses today, led by the Italian IT40, which is down over 1%. Significant declines are also visible in the French and German markets, where indices are losing around 0.8%. The Swiss SMI is down about 0.7%, and the British FTSE 100 is down 0.4%.
- As expected, the Swiss National Bank cut interest rates by 25 basis points, bringing the reference rate to 0%. The decision came in response to data indicating building deflationary pressure. In May, prices fell by -0.1%. Inflation projections still point to slight price increases in 2025, but according to the SNB chairman's statement, the bank does not rule out using negative interest rates.
- The Norges Bank surprisingly decided to cut interest rates by 25 basis points to 4.25%. The decision was unanimous and resulted from data indicating a greater-than-expected decline in inflation and concerns about a slowdown in economic growth.
- The Bank of England, as predicted, left interest rates unchanged. Nevertheless, the decision turned out to be somewhat more dovish than the market had anticipated. The vote for keeping rates unchanged versus cutting them was 6-3 (compared to a forecast of 7-2).
- Following a series of central bank decisions, we're seeing slight strengthening of the US dollar (+0.1%) in the foreign exchange market, depreciation of the euro (-0.1%), strengthening of the British pound, which erased today's declines (+0.1%), and an over 1% weakening of the Norwegian krone. The Swiss franc remains stable. Currency movements indicate a slight increase in demand for "safe haven" assets.
- Tensions in the Middle East are translating into concerns about the oil supply chain, leading to price increases for the commodity. Oil is up about 2.9% today, and natural gas is up over 2%.
- In the precious metals market, we're seeing declines. Gold is down only 0.1%, silver is down 1%, and platinum is down about 3.7%.
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