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Weekly Market Review - 16-06-2025

  • Writer: Anthony Walters
    Anthony Walters
  • Jun 16
  • 4 min read

Updated: Jun 24

In a week dominated by geopolitical unrest and cautious central bank positioning, global markets saw mixed performance. Anthony Walters, Head of ESG at Clever, provides a concise overview of the latest development in this weeks Weekly Market Review; from trade deals and central bank updates to ESG innovation and commodity market shifts.



Market Recap.


Markets retreated as conflict in the Middle East escalated. Only the FTSE 100 ETF managed a modest gain (+0.16%) as the S&P 500 ETF (-0.02%), the Nasdaq 100 ETF (-0.34%), and the Dow Jones Industrial Average ETF (-0.55%) all sold off.

 


News.


U.S. President Donald Trump and British Prime Minister Keir Starmer said on Monday that they had signed a trade deal that will slash tariffs on UK auto and aerospace industry imports, but they are still discussing how to handle steel production.


The signing of the deal at the G7 followed Trump and Starmer's announcement in May that they’d reached a framework for a trade pact that would slash US import taxes on British cars, steel and aluminium in return for greater access to the British market for US products, including beef and ethanol. But Monday's agreement only covers British cars and aerospace materials, with more to come on steel.



Inflation. 


Tariffs will weigh on euro zone economic growth and prices for years, but there is little risk of inflation falling too low, and even the euro's surge against the dollar is not a major worry, European Central Bank Vice President Luis de Guindos said.


The ECB signalled a pause in policy easing this month despite projections showing price growth dipping below its 2% target temporarily on the strong euro and low oil prices, reviving worries that the ultra-low inflation environment of the pre-pandemic decade could return.



Central Banks.


The Bank of England (BoE) is widely expected to keep interest rates on hold at 4.25% this week, as policymakers weigh rising geopolitical risks, persistent inflation, and conflicting domestic economic data.


The Monetary Policy Committee (MPC) will announce its decision on Thursday, and markets are betting that it will maintain its “gradual and careful” approach to easing policy. Since August 2024, the BoE has reduced rates four times amid stubborn inflation and resilient wage growth.



Commodities.


Brent crude oil futures rose more than 1.00% to around $74.20 per barrel on Tuesday as Israel vowed more strikes on Iran, keeping the market on edge about a potential escalation that could disrupt energy flows and vital trade routes. US President Donald Trump on Monday called for the evacuation of Tehran after Israel intensified airstrikes on Iran’s capital, including a hit on state media buildings. The attacks came even as reports indicated Iran has been urgently signalling that it seeks an end to hostilities and a resumption of negotiations over its nuclear program.

 


ESG.


Athletic apparel company Lululemon Athletica and Australian environmental technology startup, Samsara Eco, have announced a new 10-year offtake agreement, providing recycled raw materials for use in Lululemon’s products. According to the companies, the new agreement could see Samsara Eco’s materials support approximately 20% of Lululemon’s overall fibre portfolio.


The new agreement will support lululemon’s sustainable materials goals, which include targets to source 75% “preferred materials,” or those with improved environmental or social sustainability outcomes and impacts compared to conventional production, by 2025, and 100% by 2030.



Geopolitics.


U.S. President Donald Trump left the Group of Seven summit in Canada a day early due to the situation in the Middle East, the White House said on Monday.


French President Emmanuel Macron said Trump had made an offer for a ceasefire between Israel and Iran. Trump had earlier urged everyone to immediately evacuate Tehran and reiterated that Iran should have signed a nuclear deal with the United States.

 


Week Ahead.


US: The Federal Reserve will announce its interest rate decision on Wednesday, in which it is expected to maintain interest rates at 4.50%.


UK: On Wednesday, the UK will publish its Inflation data, with CPI expected to lower from 3.50% to 3.30%, year-on-year. And on Thursday, the Bank of England is widely expected to hold interest rates at 4.25%, in its latest interest rate decision. 



Sources. 

Anthony Walters - Head of ESG at Clever Adviser Technology Ltd (Clever) 

Market recap Data sourced from FE FundInfo & Koyfin. ETFs quoted: iShares Core FTSE 100 UCITS ETF, iShares Core S&P 500 UCITS ETF, iShares Nasdaq 100 UCITS ETF (quoted in Pounds Sterling).

News US and UK announce a trade deal, but steel imports are still being negotiated, by Jill Lawless and Will Weissert, Yahoo Finance/AP, 16/06/2025

Inflation ECB relaxed about euro strength, risk of too low inflation, de Guindos says, by Balazs Koranyi and Francesco Canepa, 16/06/2025

Central Banks Bank of England expected to hold interest rates as oil prices rise and UK growth falters, By Pedro Goncalves, Yahoo Finance, 17/06/2025

ESG Lululemon Signs Deal to Buy Recycled Materials for up to 20% of its Total Fibers, by Mark Segal, ESG Today, 12/06/25

Geopolitics Trump leaves G7 summit early due to Middle East situation, By John Irish, Jarrett Renshaw and Andreas Rinke, Yahoo Finance/Reuters, 16/06/2025

Commodities Trading Economics, 17/06/25

Week ahead Investing.com. 17/06/2025

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