Financial Markets Daily Report16 June 2025
Markets turned defensive on Friday as geopolitical tensions in the Middle East escalated. Sovereign bond yields rose across the curve on both sides of the Atlantic, with eurozone peripheral spreads widening slightly. Concerns that surging oil prices could reignite inflationary pressures clouded other macro developments: in the US, the University of Michigan’s consumer sentiment index for June surprised to the upside, while Eurozone industrial production for April fell by more than expected.
