- US stocks heading for best quarter in 6 years
- ECB forum in Sintra may rock markets
- Yen weakens to levels not seen since 1986
- US NFP on Thursday may set tone for July
- Gold lingers around $4000 level
It’s been a positive week for equity markets so far as easing US-Iran tensions lifted sentiment and stimulated appetite for risk.
Global equities are mostly higher, with the S&P500 set to secure its best quarter in six years.
Stock markets are securing gains as investors prepare for another strong earnings season, while lower oil prices may reduce inflation fears – cooling bets around higher US rates.
This bullish combination could mean a solid start for global stocks in Q3.
The world’s most powerful central bankers are gathering at a luxury resort in Sintra, Portugal this week.
This forum of financial heavyweights is a big deal and may provide critical insight into monetary policy for the second half of 2026.
Anything Lagarde, Warsh and their peers say this week could move currencies, gold and risk sentiment fast.
This could be a big week for the Japanese Yen after its recent losses extended beyond 162 against the dollar.
Such a major milestone is likely to ruffle fears in Japan as the currency trades around levels not seen since 1986.
It’s worth noting that Japanese authorities have already spent almost $74 billion in late April to prop up the currency.
Given how the USDJPY is a ticking timebomb, it remains a question of when, not if, Japan intervenes.
US markets are closed on Friday and Japan has made a habit of intervening during the US holiday periods. So, there could be some fireworks by the end of this week or earlier.
Gold is on track for its biggest quarterly decline in 13 years.
The precious metal has been pressured by inflation risk thanks to US-Iran tensions. A stronger dollar has added pressure to gold, making the metal more expensive for many buyers, with a gauge of the greenback rising more than 2% this month.
A strong US jobs report on July 2, where World Cup-related hiring nudges the headline number above expectations, may reinforce the Fed’s hawkish narrative. If this bolsters the odds of a hike in July, gold could be set for fresh pain below $4000.
