Peace at last?

US equities moved higher last week as the US and Iran signed a deal aimed at ending the war. The agreement involves the reopening of the Strait of Hormuz, $300bn for Iran's reconstruction and the US terminating "all types of sanctions" on Iran. Kevin Warsh held his first meeting as Fed chair and promised that the central bank “will deliver price stability”. Interest rates were left unchanged, but the meeting was interpreted as hawkish, with bond yields moving higher as a result.

The Bank of England also left rates unchanged with markets expecting a rate hike before year end. The Swiss National Bank kept rates at 0% and stated that their readiness to intervene in currency markets has increased. Elsewhere, the Brazilian Central Bank opted to reduce rates by 25 bps as expected but raised the bar for further rate cuts. Finally, the Reserve Bank of Australia held rates steady but noted that “headline and underlying inflation are still too high”.

Last week's highlights

	Federal Reserve Meeting (17/06) – Hawkish hold with nine participants projecting a hike in 2026.  US / Iran deal – Agreement involves the reopening of the Strait of Hormuz, $300bn for Iran's reconstruction and the US terminating "all types of sanctions" on Iran.
	Eurozone CPI - May (17/06) – Came in at 3.2% in May, with core CPI coming in at 2.6% vs 2.5% forecast.  Swiss National Bank Meeting (18/06) – Left key policy rate unchanged at 0% as expected.
	UK CPI - May (17/06) – Inflation was flat at 2.8% in May, below expectations of a rise to 3%. Bank of England Meeting (18/06) – Left rates unchanged as expected.
	Brazilian Central Bank Meeting (17/06) – Cut rates by 25 bps as expected but raised the bar for more rate cuts.  Reserve Bank of Australia Meeting (16/06) – Held rates steady but noted that “headline and underlying inflation are still too high”.

Looking ahead to this week, the Fed’s preferred inflation measure, core PCE, is due out on Thursday. Investors in Europe & the UK will receive PMIs with both the HCOB’s Eurozone Composite PMI and S&P Global’s Manufacturing & Services PMI set to be released.

What's on the radar

	S&P Global Manufacturing & Services PMI (23/06) New Home Sales – May (24/06) Core PCE Price Index – May (25/06)
	HCOB Eurozone Composite PMI – June Preliminary (23/06)
	S&P Global Manufacturing & Services PMI (23/06)
	People’s Bank of China Meeting (22/06) Brazil Unemployment Rate (26/06)

Chart of the moment - Selling your Seoul?

Source: Bloomberg as of 31/05/2026.

Note: The chart shows the annual % change in South Korea's exports of information and communication technology products.

• South Korea’s tech exports surged 129% year-over-year in May, driven by demand for semiconductors and other products related to the AI buildout.
• South Korea’s leading chipmakers, Samsung Electronics and SK Hynix, have both moved above the $1tn level in market cap and are now among the 20 largest companies in the world.
• Chip demand should remain strong while scarcity persists, but if AI becomes cheaper and more efficient, the focus is likely to shift from building more hardware to using it more efficiently.