Global financial markets showed caution amid geopolitical and monetary policy developments. Safe-haven assets gained traction as concerns over Middle East tensions resurfaced. Much of the movement was also driven by central banks adjusting stances: notably, the Swiss National Bank shifted its policy rate to zero, and the U.S. Federal Reserve opted to pause after rate-hike cycles despite lingering inflation and trade war uncertainties.

Asia Pacific Markets

In Japan, authorities unveiled plans to dial back issuance of ultra-long government bonds 20‑, 30‑, and 40‑year — by roughly 10%, slashing total issuance by ¥2.3 trillion, and shifting focus to shorter maturities and household‑targeted papers, in reaction to last month’s weak demand.
Meanwhile, in currency markets, the Australian dollar and Japanese yen both softened slightly.

European Markets

European equities slumped, dragged by mounting fears of U.S. involvement in the Israel‑Iran conflict. The STOXX 600 dropped about 0.6%, its lowest point in over a month, with energy names benefitting somewhat from rising oil prices, while travel and leisure sectors suffered. Volatility indicators surged to their highest since May 23. Notably, the Swiss National Bank’s policy shift to a zero rate weighed on the franc’s exporters even as the central bank signalled readiness for further easing.

American Markets

In the U.S., the Federal Reserve chose to maintain its current policy rate, damping hopes for immediate rate cuts as inflation projections were raised and geopolitical risk — especially from tariffs — continued to weigh. Officials predict just one rate cut in each of 2026 and 2027. Markets are now awaiting the July 8 deadline on proposed tariffs and fresh inflation data, which could significantly influence Fed timing.