Weekly Market Review - 01-06-2026

Jun 1
6 min read

This week’s market review reflects a mixed but eventful backdrop for investors, with US technology stocks continuing to lead equity gains while UK markets remained under modest pressure. Inflation, energy prices and geopolitical tensions stayed firmly in focus, influencing commodity markets, central bank expectations and wider economic sentiment. The update also looks at the latest movements in housing, sustainability policy, defence developments and the key data releases investors will be watching in the week ahead.

Market Recap.

Equity markets delivered a mixed performance this week, with technology stocks continuing to lead gains while UK equities moved slightly lower.

UK equities softened, with the FTSE 100 ETF falling 0.52%, reflecting a more cautious tone across large-cap stocks.

In the United States, performance was more positive. The Dow Jones Industrial Average ETF edged higher by 0.39%, while the S&P 500 ETF rose 0.95%, indicating broader resilience across US markets.

Technology stocks once again outperformed, with the Nasdaq 100 ETF posting a solid gain of 2.10%, supported by continued investor appetite for growth-oriented names.

Overall, the week highlights a familiar pattern, with US markets showing steady progress and technology leading the way, while UK equities remained under modest pressure.

News.

UK housing and mortgage markets showed mixed signals this week, as major lenders cut mortgage rates while house price growth softened.

Barclays reduced rates on almost 20 mortgage products, including its three-year fixed 95% loan-to-value purchase mortgage, which fell from 5.85% to 5.42%. NatWest also cut selected deals, including its two-year tracker 80% loan-to-value remortgage product, which dropped from 4.96% to 4.41%.

At the same time, Nationwide reported that annual house price growth slowed to 1.70% in May, down from 3.00% in April, while prices fell 0.60% month-on-month, marking the first monthly decline this year. The data suggests that while lower mortgage rates may offer some support, uncertainty, higher energy costs and market interest rates are still weighing on housing market momentum.

Inflation.

Inflation pressures have intensified in the United States, with the Federal Reserve’s preferred measure, the Personal Consumption Expenditures Price Index, rising 3.80% year-on-year in April, up from 3.50% in March. On a monthly basis, PCE increased by 0.40%, following a 0.70% rise the previous month.

The increase was largely driven by higher energy costs, with petrol prices rising 5.50% in April as tensions with Iran continued to affect global energy markets. The average price of petrol rose to $4.42 per gallon, up from $4.17 a month earlier and $2.98 on 28 February.

Food prices also increased by 0.50%, marking the largest monthly rise since November 2022, while housing and utility costs rose by 0.60%. With inflation still above the Federal Reserve’s 2.00% target, the figures are likely to keep policymakers cautious ahead of their June meeting.

Central Banks.

The European Central Bank is facing renewed pressure as inflation in France accelerated to its highest level in more than two years, driven largely by rising energy costs.

French consumer prices rose 2.80% year-on-year in May, up from 2.50% in April, according to EU-harmonised data from Insee. This pushed inflation further above the ECB’s 2% target and marked the highest level since February 2024.

Energy inflation increased to 16.80% in May, up from 14.30% in April, reflecting the continued impact of higher oil and gas prices linked to tensions in the Middle East. Services inflation also picked up, rising to 2.00% from 1.80%.

The data adds to the challenge facing ECB policymakers, as inflation pressures are re-emerging at the same time as growth remains weak. France’s economy contracted by 0.10% in the first quarter, highlighting the difficult balance between controlling inflation and avoiding further pressure on economic activity.

Commodities.

Commodity markets remain sensitive to geopolitical developments, with energy prices moving higher as investors continue to monitor tensions in the Middle East and the risk of disruption around the Strait of Hormuz.

WTI crude is trading around $90.40 per barrel, compared with approximately $87 per barrel last week. That means WTI crude has increased by around $3.40 per barrel, or roughly 3.9%.

Brent crude is trading around $94 per barrel, compared with approximately $91 per barrel last week. That means Brent crude has increased by around $3 per barrel, or roughly 3.3%.

Precious metals remain elevated, with gold trading around $4,510 per ounce and silver around $75.80 per ounce. Gold has edged lower on the day, while silver has moved slightly higher, but both remain supported by ongoing safe-haven demand amid geopolitical uncertainty.

ESG.

The US Securities and Exchange Commission has launched a formal process to rescind corporate climate reporting rules introduced under the Biden administration, marking a significant reversal in US sustainability disclosure policy.

The rules, adopted in 2024, would have required public companies to disclose climate-related risks facing their businesses, plans to address those risks, the financial impact of severe weather events and, in some cases, greenhouse gas emissions from their operations.

The SEC argued that the rules exceed the agency’s statutory authority and said there were “independent, compelling policy reasons” to rescind them entirely. SEC Chair Paul Atkins said disclosure obligations should be guided by “materiality as the North Star” and imposed only when the expected benefits justify the likely costs and burdens.

The move has been criticised by environmental groups, who argue that climate risk remains financially material for investors. The formal process now begins with a 60-day comment period, and the proposed rescission is likely to face legal challenges.

Geopolitics.

The drones will be developed under “pillar two” of the agreement, which focuses on advanced defence technologies including undersea systems, artificial intelligence, cyber capabilities, quantum computing and hypersonic technology. The initiative is intended to help the three countries respond to threats against submerged cables and pipelines, which are increasingly viewed as strategically important assets.

US defence secretary Pete Hegseth said the project would deliver “a suite of highly adaptable multi-mission” uncrewed underwater vehicle payloads to support undersea operations and maintain a collective advantage in the maritime domain.

UK Defence Secretary John Healey said the technology would strengthen the ability of all three countries to respond to undersea threats, adding that it would provide “cutting-edge sensors and weapons systems for undersea drones.”

Week Ahead.

United States

In the United States, attention this week will focus on business activity, labour market data and Federal Reserve commentary. The week begins on Monday 1 June with the ISM Manufacturing PMI for May and construction spending data for April, offering insight into industrial activity and wider economic momentum. On Tuesday 2 June, the JOLTS job openings report for April will provide a key update on labour demand. On Wednesday 3 June, markets will monitor the ADP employment report, factory orders and the ISM Services PMI, alongside the Federal Reserve’s Beige Book. Weekly Initial Jobless Claims are due on Thursday 4 June, before the week concludes on Friday 5 June with the May Employment Situation report, including non-farm payrolls, the unemployment rate and wage growth.

United Kingdom In the UK, the week begins with housing and manufacturing data. On Monday 1 June, Nationwide house price data for May and the final S&P Global Manufacturing PMI are released, providing insight into both the property market and factory activity. The final S&P Global Services PMI and Composite PMI are expected on Wednesday 3 June, offering a broader view of private sector momentum. With the domestic data calendar otherwise relatively light, markets will continue to monitor Bank of England commentary, particularly around inflation, energy prices and the outlook for interest rates.

Eurozone

Across the Eurozone, attention will centre on inflation, unemployment and business activity. On Monday 1 June, markets will monitor final manufacturing PMI data and April unemployment figures. The key release comes on Tuesday 2 June, when the Eurozone flash inflation estimate for May is due, providing an important signal ahead of the European Central Bank’s June policy meeting. Final services and composite PMI data are expected on Wednesday 3 June, while producer price inflation and retail sales figures later in the week will provide further insight into price pressures and consumer demand.

It is important to note that the geopolitical situation remains highly fluid, and developments are changing rapidly. As such, the outlook may shift quickly as new information emerges.