Investment Daily: Global stocks rose as geopolitical tensions eased
16 June 2026
Key takeaways
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US stocks rose; Treasuries were little changed.
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European stocks and government bonds rose.
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Asian stocks rallied.
Markets
US stocks advanced on Monday amid lower oil prices and easing geopolitical risk. The S&P 500 rose 1.7%.
US Treasuries ended little changed, as eased inflation concerns met heavy corporate supply ahead of this week’s Fed policy meeting. 10-year yields edged 1bp lower to 4.47%.
European stocks mostly rose on Monday as geopolitical tensions eased. The Euro Stoxx 50 gained 0.7%. The German DAX was up 1.1% and the French CAC closed 0.4% higher. In the UK, the FTSE 100 fell 0.4%.
European government bonds rose. 10-year German and French bond yields both fell 4bp to 2.95% and 3.70%, respectively. In the UK, 10-year gilt yields fell 3bp to 4.81%.
Asian stock markets rallied on Monday as oil prices fell following news report of an interim agreement between the US and Iran to re-open the Strait of Hormuz. Korea’s Kospi and Japan’s Nikkei 225 surged 5.2% and 5.0%, respectively. Elsewhere, China’s Shanghai Composite rose 1.6%, while Hong Kong’s Hang Seng gained 0.5%. India’s Sensex advanced 1.0%.
Crude oil prices plunged on Monday amid hopes of a reopening of the Strait of Hormuz. WTI crude for July delivery settled 4.9% lower at USD80.8 a barrel.
Key Data Releases and Events
Releases yesterday
US industrial production rose by 0.1% mom in May following April’s 0.9% mom increase. Manufacturing output is trending upwards.
Releases due today (16 June 2026)
The Bank of Japan governor Ueda signalled a 25bp rate hike, citing increased signs of spillover effects from higher oil prices.
In China, continued strength in high-tech manufacturing and robust exports should underpin industrial production. Weak retail sales likely partly reflected unfavourable base effects from last year's trade-in subsidies.
The Reserve Bank of Australia (RBA) may keep its policy rate on hold at 4.35%, as weaker labour market data has eased pressure for further rate hikes in the near-term, although the RBA remains vigilant on inflation.
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