Financial Markets Daily Report29 juny 2026
Investors' risk appetite remained subdued on Friday, as lower oil prices prevailed despite heightened disruption risks in the Strait of Hormuz, where a UK Navy-confirmed tanker strike on late Thursday temporarily raised maritime threat levels.
Sovereign bond markets were mixed across regions. Euro area yields were broadly stable and interbank rates edged lower, reflecting softer ECB tightening expectations after May’s 1‑year CPI expectations declined. In the US, Treasury yields declined across the curve, with a stronger front-end move, consistent with diminishing expectations of Fed hikes.
Equities weakened, led by tech, following an Apple warning on input costs and news of a potential delay in OpenAI’s IPO, with Asia underperforming and Korea experiencing trading disruptions, while the MSCI EM index posted its worst week since March. European and US markets were more resilient, while volatility increased modestly but remained contained. In FX, the dollar traded broadly flat against its peers.