Global markets paused as geopolitical developments and monetary policy weighed on sentiment. The U.S. delayed its decision on military intervention in the Israel‑Iran conflict, granting a two‑week window for diplomacy and easing risk‑off pressures in oil markets. Meanwhile, the Federal Reserve left interest rates unchanged but signaled caution about inflation, ending the week with markets treading water. Notably, Norway surprised with a rate cut, highlighting how trade uncertainties, Middle East tensions and a soft dollar mix complicate global central bank responses.

Asia Pacific Markets

In Asia, the Bank of Japan’s Governor Kazuo Ueda reaffirmed that the BOJ will raise rates further if the economy improves enough to sustain its 2 % inflation target. He noted labour shortages lifting medium‑ to long‑run inflation expectations, although growth‑related dips might temporarily stall price gains. The yen and outlook for JPY‑denominated assets remained sensitive to Ueda’s cautious optimism.
Asia witnessed cautious tone overall as markets gauged both central bank cues and regional trade dynamics.

European Markets

European equities rebounded after three days of losses as U.S. inaction on deeper involvement in the Middle East eased safe‑haven demand. The STOXX 600 climbed about 0.6 %, helped by banking and travel & leisure sectors, while energy lagged but remained modestly positive on the week. German and U.K. indices gained roughly 0.8 % and 0.4 %, respectively, supported by upbeat sectoral moves. Yet lingering trade‑talk uncertainties ahead of a July tariff pause deadline restrained broader sentiment.

American Markets

U.S. markets showed limited direction as investors digested mixed signals. Wall Street futures softened amid geopolitical jitters and renewed Fed caution on inflation, even as the S&P 500 recovered from earlier dips. The Dollar approached a one‑month weekly high as safe‑haven demand spiked, and oil prices rose on Middle East concerns, clouding the outlook for coming Fed cuts. With next week's PCE, housing, and consumer data due, investors adopted a cautious “wait‑and‑see” approach.