Weekly Market Review - 23-06-2025
- Anthony Walters
- Jun 23
- 4 min read
This week’s markets reflected growing geopolitical tensions, with volatility spurred by developments in the Middle East and Asia. As investors weighed inflation trends and central bank guidance, only the defence-heavy Dow Jones managed a slight uptick. Meanwhile, ESG progress continued to shine, and investors brace for key economic data in the week ahead. Here's your full Weekly Market Review from Anthony Walters, Head of ESG at Clever.
Market Recap.
Markets paused for the second week in a row as conflict in the Middle East grows. The single beneficiary, supported by defence stocks, was the Dow Jones Industrial Average ETF (0.23%). All other major markets pulled back modestly as investors took time to digest current affairs: FTSE 100 ETF (-1.02%), S&P 500 ETF (-0.01%), Nasdaq 100 ETF (-0.31%).
News.
The dollar strengthened on Monday as investors sought to shield against mounting geopolitical risks following the US strikes on Iran.
The US currency gained against the euro and most major foreign-exchange peers in Asia trading. Crude oil futures climbed, and US equity contracts slipped as the bombing fueled demand for safety and angst about energy supply.
“We expect some risk off, but not an aggressive one,” said Diego Fernandez, chief investment officer at A&G Banco in Madrid. “The world may be a safer place without the Iranian nuclear threat, but we still need to see the Iranian reaction and how the conflict evolves.”
Inflation.
UK inflation has held at a higher-than-expected rate after air fares and motor fuel dropped in price.
The Office for National Statistics said the consumer prices index was 3.40% in May, having also been 3.40% in April, its highest level for more than a year. While fuel prices dropped, food prices increased to the highest rate in 12 months, while household goods also went up in cost.
Central Banks.
The Federal Reserve held interest rates steady last week, for the fourth meeting in a row. The central bank voted unanimously to maintain its benchmark interest rate in the range of 4.25%-4.5%. The Fed has now held rates at that level for six months since last cutting rates in December.
Fed officials still see two rate cuts this year, the same amount projected in March, amid uncertainty of how the Trump administration’s policies, from tariffs to immigration to tax policy, will impact the economy.
Commodities.
Oil prices surged to a five-month high on Monday after Iran signalled it may close the strategically critical Strait of Hormuz in retaliation for US strikes on its nuclear facilities.
Brent crude rose 0.80% to $77.62 a barrel, while West Texas Intermediate climbed by the same margin to $74.42 in early trading. Prices spiked as high as $81 over the weekend before settling down.
Tensions escalated after Iran’s parliament on Sunday approved a motion to block the narrow waterway, through which roughly 20% of global oil and gas supplies pass. The final decision rests with the Supreme National Security Council, according to Iranian state media.
ESG.
Global food and beverage company Nestlé has revealed that its largest coffee brand, Nescafé, sourced nearly a third of its coffee from farmers implementing regenerative agriculture practices in 2024, significantly beating the company’s goal to reach 20% by 2025.
The company’s achievement was announced with the release of its Nescafé Plan 2030 Progress Report, detailing the brand’s progress on its strategy to improve the sustainability of coffee farming. Nescafé launched the strategy in 2022, with a commitment to invest over $1 billion in the plan by 2030.
Geopolitics.
China's military has criticised the sailing of a British warship through the Taiwan Strait as a deliberate attempt to "cause trouble", while Taiwan's president ordered monitoring to be stepped up in response to Chinese military activities.
China, which views Taiwan as its own territory, though Taipei rejects that claim, has stepped up drills around the island over the past five years, including staging war games that have alarmed Taiwan, Washington and Tokyo. Britain's Royal Navy said its patrol vessel Spey made a routine navigation through the narrow waterway as part of a long-planned deployment and in full compliance with international law.
Week Ahead.
US: GDP (Gross Domestic Product) is announced on Thursday, with the market expecting growth to contract by -0.20%, compared to prior growth of 2.40%. And on Friday, the latest PCE (Personal Consumption Friday Expenditures) data is announced, a key leading indicator of inflation.
Europe: Investors expect Eurozone manufacturing activity to inch closer to stabilisation, while services activity may return to expansion territory for the first time in months.
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 Dollar Gains as the World Awaits Iran’s Response to US Attack, by Sagarika Jaisinghani, Anya Andrianova, Macarena Muñoz and Ruth Carson, Yahoo Finance/Bloomberg, 23/06/2025
Inflation UK inflation rate holds as air fares and fuel prices decrease – but risk remains, by Karl Matchett, Yahoo Finance/Independent, 18/06/2025
Central Banks Fed holds rates steady, stays on track for 2 cuts in 2025, By Jennifer Schonberger, Yahoo Finance, 18/06/2025
ESG Nestlé’s Nescafé Significantly Beats Sustainable Coffee Farming Goal, by Mark Segal, ESG Today, 11/06/25
Geopolitics China angered by British warship sailing as Taiwan raises alert level, By Reporting by Beijing newsroom and Ben Blanchard; Additional reporting by Joe Cash in Beijing, Yahoo Finance/Reuters, 20/06/2025
Commodities Oil jumps to 5-month high after Iran votes to close Strait of Hormuz, 23/06/25
Week ahead Investing.com and Nathan Sweeney, Marlborough, 23/06/2025
