Market Overview
The start of the week not only wrapped up another month of trading but also concluded a volatile first half of the year, heavily influenced by President Donald Trump’s tariffs and geopolitical tensions.
Trade Relations Developments
A noteworthy event this month was the easing of trade tensions between the US and China. The month began tumultuously as Trump accused China of breaching their Geneva agreement, raising fears that the trade truce was already disintegrating.
Positive Negotiations
However, after a discussion between Trump and Chinese President Xi Jinping, trade representatives convened in London and confirmed an agreed framework for moving forward. By the end of June, Trump declared that the US and China had reached a deal.
Geopolitical Tensions
While tariff disputes lessened, tensions in the Middle East heightened as Israel and Iran engaged in airstrikes, coinciding with stalled talks regarding Tehran’s nuclear program. Trump announced a US-mediated ceasefire, though Israel accused Iran of violating it, prompting further US intervention to restore the truce, which has seemingly held since last week.
Market Performance Highlights
In terms of market performance from June, the UK’s FTSE 100 reached a record high of 8884.90 points on June 12, before experiencing a slight decline and recovering some ground at the end of the month. Meanwhile, the US markets showed stability, with the S&P 500 and tech-heavy Nasdaq achieving new record highs by month-end.
Top Stocks Among Investors
Tesla was the most-purchased stock on platforms like Interactive Investor and Robinhood. Despite a challenging June—resulting in a year-to-date decline of over 25%—CEO Elon Musk’s focus on Tesla’s Model Y, claimed to be fully autonomous, appeared to bolster investor interest. However, competition from smartphone maker Xiaomi in China posed additional challenges for Tesla.
Investor Sentiment and Trends
The first half of the year showed persistent investor interest in technology and defence stocks. Despite earlier struggles, Nvidia turned around its performance in June, buoyed by strong first-quarter results and new AI chip deals with Saudi Arabia and the UAE. Meanwhile, the rising popularity of passive funds continued, reflecting investor confidence in major global companies despite the prevailing market volatility.
