Prospects of the end of the US-Iran war and the Strait of Hormuz reopening support bond markets

After more than three months of war and a global energy shock, the United States and Iran have reached a peace deal.

A weekly review of global equity markets for the period ending 12 June 2026, covering the impact of renewed US-Iran tensions and the ECB's first rate hike since 2023 on regional equity performance, the rotation away from mega-cap technology into financials and cyclicals, and the significance of the SpaceX IPO as a landmark moment for the AI infrastructure investment cycle.

Meanwhile, IPO boom brings US stock supply back into positive territory and FIFA become world champions of overpriced tickets. Each week, the Syz investment team takes you through the last seven days in seven charts.

Major U.S. stock indexes ended the volatile week higher as cautious optimism around a possible U.S.-Iran agreement, declining oil prices, and continued broadening beyond large-cap tech stocks helped offset mixed inflation data and volatility in AI-related shares. Small-cap stocks led the advance, with the Russell 2000 Index rising 3.9%, while the Dow, S&P 500, and Nasdaq Composite all added over 0.6%. The Russell 1000 Value Index outpaced its growth counterpart for the second week in a row. Risk appetite improved late in the week, following reports of progress toward a U.S.-Iran agreement and President Trump’s cancellation of planned strikes.

BCE decision from 11 June 2026

Rising rates weight again on bonds’ performance while Corporate and EM spreads remain tight

From trillion-dollar rockets to crypto selloffs, the era of eye-watering numbers is here and it's moving fast. Each week, the Syz investment team takes you through the last seven days in seven charts.

Global equity markets fell broadly in the week ending 5 June 2026, with the MSCI ACWI down 2.2% as three headwinds converged simultaneously: a stronger-than-expected US jobs report that pushed Fed rate hike pricing sharply higher, Broadcom's below-consensus AI chip guidance that rattled the semiconductor complex, and renewed Middle East tensions as ceasefire efforts in Lebanon faltered. Technology and consumer discretionary bore the brunt of the selloff, while energy and financials outperformed. In Europe, defence stocks reversed sharply on de-escalation signals. South Korea was the worst-performing major market, with MSCI Korea down 5.3%, while China proved a rare exception, edging modestly higher.

Major U.S. stock indexes finished the week lower. Declines were led by the technology-heavy Nasdaq Composite, which fell 4.68%, followed by the Russell 2000 and S&P 500 Indexes, the latter of which posted a weekly loss for the first time since March. The Dow Jones Industrial Average held up best, declining 0.32%. Early gains tied to artificial intelligence (AI) optimism faded later in the week as investors weighed oil price volatility tied to Middle East headlines, elevated earnings expectations for AI-linked companies, a growing pipeline of AI-related equity issuance, and a stronger-than-expected May payrolls report that helped push Treasury yields higher on Friday.