Your Weekly Market Wrap-Up

29th June - 3rd July 2026

Global Highlights

U.S. Markets

Major U.S. equity indices closed the week on a mixed note, with most benchmarks ending in positive territory except for small-cap stocks, which underperformed. Recent data indicates signs of cooling in the U.S. labour market, while broader economic indicators remain soft—consumer confidence stayed subdued, and manufacturing activity continued to contract.

European Markets

European equities finished the week on a strong footing, supported by a decline in oil prices. This has raised expectations that the potential economic impact on growth and inflation may be less severe than initially anticipated. Additionally, Eurozone inflation came in below expectations, reducing the likelihood of further interest rate hikes in the near term.

Asian Markets

Asian markets were mixed; in Japan, equities were weighed down by profit-taking in high-valued technology and semiconductor stocks. Rising bond yields, driven by inflationary pressures and fiscal concerns, also impacted sentiment. In contrast, Chinese markets ended positively, supported by June PMI data expansion in manufacturing activity, indicating resilience.

Weekly Spotlights

U.S. job growth for June came in below expectations, signalling a moderation after three consecutive months of stronger-than-expected gains. The economy added approximately 57,000 jobs, nearly half of what economists had forecast. Following the release, market expectations for a Federal Reserve rate hike in July declined significantly, with probabilities dropping from around 29% to approximately 18%.

Market Performance

Asset Name Weekly Closing Level Weekly % Return
S&P 500 7,483.24 1.76%
DJIA (Dow Jones) 52,900.07 1.97%
Nasdaq Composite 25,832.67 2.12%
Nikkei 225 69,744.07 0.55%
FTSE 100 10,679.03 1.63%
Shanghai Composite 4,043.64 0.41%
Sensex (BSE) 77,763.91 0.86%
ADX Index (UAE) 9,809.64 -0.71%
Gold 4,187.30 2.22%
Brent Oil (USD/bbl) 72.12 0.18%

Outlook

The S&P 500 posted its strongest quarterly performance since 2020 in Q2, while MSCI Asia recorded its biggest gain since 2009 and Europe’s Stoxx 600 rose 10% over the quarter. Looking ahead, market leadership continues to be supported by solid corporate earnings, especially in AI-related sectors. The structural momentum behind the AI investment cycle remains a key driver of market strength. Although concentration in mega-cap stocks remains an important risk to monitor, the broader earnings environment still offers support. In our view, maintaining a diversified portfolio across asset classes, sectors, and regions is likely to be more effective than trying to time short-term market moves.

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Disclaimer

This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.