Positive growth and inflation surprises helped equity markets to end Q2 and H1 strongly. The S&P 500 Index recorded its best weekly gain since the end of March. The rally also broadened, with small-caps and value shares outperforming. Still, the Nasdaq remains by far the best performer year-to-date, up nearly 32%, its best start to the year since 1983. Apple closed the week with a market cap above USD 3 trillion, marking a first for a publicly traded company. Inflation data released Friday appeared to provide the biggest boost to sentiment. US PCE price index had increased by 0.1% in May, bringing its yoy increase down to 3.8%, its lowest level since April 2021. The core PCE index fell back to 4.6% on a yoy basis, still well above the Fed’s 2% target, but lower than expectations. Other macro data boosted sentiment: Private sector incomes rose 0.5% in May, weekly jobless recorded their sharpest drop since October 2021, durable goods orders rose 1.7% in May (versus -1% expected) while May new home sales easily outpaced estimates. In Fixed Income, US Treasuries 10-year yield spiked to 3.87%, its highest level since March 9. In Europe, the STOXX 600 Index rallied 1.94% on hopes that China would do more to boost consumption and that lower-than-expected inflation data could mean that interest rates are near their peak. China stocks ended mixed, as weak economic indicators offset optimism that the government might implement additional measures to bolster economic growth. Cryptos were volatile.