Financial Market Newsletter

The European Central Bank has delivered its first interest-rate increase in nearly 3 years, becoming the first major Central Bank in the developed world to respond to inflation triggered by the war in Iran.

U.S inflation continued to rise to a three-year high of 4,2% in May, driven by higher energy costs.

The Bank of Canada is widely expected to keep its policy rate unchanged on Wednesday night, after leaving it at 2,25% since October 2025, as policymakers confront an economy on the edge of recession and the risk of higher inflation driven by rising energy costs.

The European Central Bank is expected to become the first major Central Bank to raise policy rates in response to the impact of the conflict in the Middle East.

USD/JPY continued to rise above 160,09 on Thursday, prompting warnings from the Japanese Government about the possibility of another foreign-exchange intervention following its most recent action on 30/4.

The U.S Government is proposing new tariffs of at least 10% on many of its trading partners, citing concerns related to the protection of workers subjected to forced labor.

Inflation in the euro area continued to rise, paving the way for a possible interest-rate increase by the European Central Bank next week.

U.S manufacturing activity expanded at the fastest pace in 4 years in May, driven by stronger new orders and higher output.

China’s manufacturing activity slowed in May due to disruptions from the five-day holiday, combined with pressure on global demand and rising input costs caused by the ongoing conflict in the Middle East.