Public Markets 3 Days

Last updated: June 28, 2026, 8:30 PM ET

Global Markets & Geopolitics

Concerns over Middle East supply disruptions have driven oil prices higher, with futures edging up on Sunday evening as reports of a de-escalation in US-Iran hostilities offered a brief reprieve. Reports of a US and Iran agreement to halt attacks, following a flare-up that saw a supertanker hit near the Strait of Hormuz, initially sent oil prices rising and boosted US equity futures. However, the situation remains fluid, with Iran viewing its control over the Strait of Hormuz as critical leverage in peace talks, potentially risking the cease-fire to maintain that power. Meanwhile, ramping up oil exports as Gulf ports restart, attempting to navigate the ongoing geopolitical tensions. The broader impact of these events is felt across sectors; a jet fuel refinery in South Korea is scrambling to wean itself off Middle Eastern oil amid the ongoing shockwaves from the Iran war.

Equities & Investments

The artificial intelligence boom, a primary driver of market gains, is showing signs of turbulence. Tech companies are selling stock at a pace reminiscent of the dot-com era, leading some investors to fear for bondholders. This sector-wide caution is reflected in investor outflows from US equities, the first since March, with record withdrawals from tech funds indicating a cooling of the AI trade. Despite this, Goldman Sachs strategists see opportunities in big tech stocks amidst chip sector volatility. European investors are seeking AI exposure through power suppliers and banks that enable the technology. RBC Blue Bay Asset Management, while remaining bullish on Japanese AI-related stocks with a rally expected into 2027, is trimming near-term risk due to potential slowdowns in July and August. The Bank for International Settlements (BIS) has warned that AI "exuberance" threatens the global economy.

Fixed Income & Sovereign Wealth

The world's largest public investors, sovereign funds, are pivoting further into private and less liquid assets amid rising risks to traditional bond and stock portfolios, according to an industry survey. This shift underscores a cautious market sentiment, further complicated by the Federal Reserve's hawkish stance, which is throwing down a challenge for emerging-market bond rallies. Bond heavyweights are targeting specific market areas to navigate the early days of the "Warsh era". In Europe, Finance Minister Roland Lescure is reaffirming France's commitment to a 5% deficit target despite a fiscal watchdog's rebuke. Bolivia is moving to a flexible exchange-rate system after 15 years, aiming to strengthen macroeconomic stability.

Currencies & Macroeconomic Trends

Wall Street banks are capitulating on bets for a stronger euro, as markets anticipate the US outpacing Europe on interest-rate hikes for the remainder of the year. New Zealand's dollar faces a subdued third quarter, weighed down by a resurgent greenback and the lingering effects of the Iran war's energy shock on domestic recovery. The US merchandise-trade deficit widened in May to its largest in over a year, driven by falling exports and rising imports.

Corporate Deals & Sector News

Williams Cos. is reportedly in advanced talks to acquire rival natural gas pipeline operator Momentum Midstream for approximately $5.5 billion, a move that would represent one of its largest deals ever. In the automotive sector, Bosch CEO Stefan Hartung is unexpectedly stepping down after leading efforts to cut jobs and enhance competitiveness at the world's largest automotive supplier. Chinese autonomous driving startup Momenta Global has secured Mercedes-Benz AG and Singapore's GIC Pte as cornerstone investors for its Hong Kong IPO.

Emerging Markets & Regional Dynamics

Foreign banks are paring exposure in Indonesia, with the three largest having repatriated around $640 million of their earnings since 2024 amid concerns surrounding President Prabowo Subianto. China's President Xi Jinping continues his purge of key defense personnel, having stripped six military lawmakers of their parliamentary seats. India has advised citizens planning the Kailash Manasarovar Yatra pilgrimage in Tibet to ensure they possess all necessary Chinese visas and entry permits.

Climate & Sustainability

Extreme heat is elevating national security risks, with temperatures breaking records and shifting focus to physical dangers and energy security. Paris has suspended sports events and public drinking to ease pressure on health services due to the heatwave. Airlines are bracing for up to $127 billion in additional costs stemming from a carbon credit shortage, with Emirates potentially facing the highest expenses due to its reliance on long-haul flights.

US Politics & Policy

President Trump's administration has been actively involved in various policy initiatives. The White House is reportedly seeking a deal with Yale University concerning inquiries into race and admissions practices. Trump has also nominated Lance Schroyer as the new ICE Director. The administration has loosened restrictions on Anthropic's Mythos A.I. model, de-escalating a dispute over its artificial intelligence systems. Meanwhile, the US goods trade deficit has widened significantly. The president's request for additional funds to support American farms marks another intervention aimed at bolstering the agricultural economy.

Other Notable Developments

The tragic earthquakes in Venezuela have complicated rescue efforts, with an outpouring of volunteer aid initially clogging access roads. Critics accuse the Venezuelan government of politicizing quake relief efforts. In a separate development, opposition leader María Corina Machado is working towards a return to Venezuela, a move that could reshape the political landscape. The ongoing situation in the Strait of Hormuz continues to impact shipping, with mines expected to hold up traffic for months, restricting it to half of pre-war levels. Comex gold closed the week 3.44% lower at $4078..