Market Analysis
Market flash: Markets hold firm amid Middle East tensions and US slowdown
20/06/2025
• Despite escalating tensions in the Middle East and recent statements from Donald Trump, investors remain broadly confident as long as the conflict does not spread and the Strait of Hormuz remains operational.
• The One Big Beautiful Bill Act continues to face hurdles in Congress. Meanwhile, May’s economic indicators disappointed, with a decline in industrial production and weaker retail sales.
• Neither the Fed, the Bank of England, nor the Bank of Japan altered their monetary policy. All three adopted a cautious tone, suggesting that any potential rate cuts will depend on the evolution of trade and geopolitical tensions.