Equities: The S&P 500 climbed nearly 2.0% in its best single-session performance since April. The tech-heavy Nasdaq 100 led global benchmarks with a vertical 3.0% surge, while the blue-chip Dow Jones Industrial Average scaled new historic highs. In contrast, energy producers lagged significantly (-3.6% for the S&P Energy sector).
Fixed Income: Sovereign bonds caught a wave of structural re-buying as hawkish rate-hike fears subsided alongside energy metrics. The policy-sensitive US two-year Treasury yield dropped by 2 bps to settle at 4.07% on Monday, 15 June. In Europe, Germany’s 10-year Bund yield and the UK 10-year Gilt yield edged lower by 3 bps and 1 bps, reflecting broader macro decompression.
FX: The U.S. Dollar Index (DXY) traded on a softer tone but held its 20-day moving average, acting as a key intermediate support at 99.50. The British pound underperformed, trading almost unchanged at 1.3412 against the US dollar; earlier intraday gains were wiped out amid political risk in the UK (uncertainty surrounding PM Starmer’s fate).
The Japanese yen remained weak at 160.20 per US dollar as the BoJ hiked its policy rate by 25 bps, as expected, to 1%, a 31-year high, and offered a dovish element, saying it will pause its JGB taper from April 2027.
Commodities: WTI and Brent crude oil tumbled and broke below key medium-term supports of $85.50/bbl and $86.25/bbl. Lower energy prices reduced the stagflation risk narrative, allowing precious metals to extend their corrective rebound into a third consecutive session. Gold rallied 2.1% to close at $4,308/oz on Monday, 15 June, below its 20-day moving average ($4,405/oz).
