Overview

• The MSCI World index hit a fresh record high as broad equity benchmarks rose across the United States, Asia and Europe.
• Federal Reserve officials held to a “wait and see” approach on interest rates with markets pricing in no cuts before October.
• President Trump’s 90-minute phone call with Xi Jinping was described as friendly but produced no firm commitments and set the stage for further negotiations in London next week.
• Investors have embraced the “TACO trade” by betting that Trump will delay or reverse tariff threats, tempering volatility despite newly announced steel and aluminum levies.
• Supply-chain concerns persist as China maintains near-monopoly control over rare earths essential for high-tech manufacturing.