Our Scans · (FS.5.08) Markets & Instruments · Weekly Summary

• [New] The Bank of England has held interest rates at 4.25%, a move widely expected by financial markets amid significant uncertainty over the economic impact of tariffs, UK government policy, and escalating conflict in the Middle East. Morningstar UK
• [New] Many firms have begun diversifying production through China Plus One strategies, shifting manufacturing to emerging markets such as Vietnam, India, and Mexico to reduce geopolitical risk. Atlas Institute for International Affairs
• [New] From infrastructure and sourcing strategies to labor markets and risk factors, the supply chain in Mexico offers unique characteristics that reflect its growing role in global supply chains and appeal to foreign companies seeking operational efficiency. Visigistics, LLC
• [New] Tensions in the Middle East have escalated in recent days, lifting oil prices and reviving geopolitical risk across markets. eToro
• [New] The main impact of an escalation in the Israel-Iran war would be on the energy markets with higher oil prices becoming a major upwards risk factor for inflation. Nasser Saidi & Associates
• [New] Escalating conflict between Israel and Iran has injected significant risk into markets, but is creating bullish conditions for the oil sector. Seeking Alpha
• A finalized deal could boost global growth by stabilizing trade, but failure risks renewed tariff hikes, disrupting markets and supply chains. Tekedia
• As the European markets experience a positive shift with the pan-European STOXX Europe 600 Index climbing 0.9% and major stock indexes rising, investors are eyeing opportunities in dividend stocks amidst easing monetary policies by the European Central Bank. Simply Wall St
• Fiscal and Monetary Policy: Divergent and swiftly changing policy positions by central banks and governments could lead to tighter global nancial conditions and capital outows, particularly impacting emerging markets. Scribd
• Higher US interest rates would likely prove a headwind for countries with weaker external balances, including some ASEAN markets, but they could be a tailwind for other areas, including many Asian financial stocks. QuotedData
• Global bond and currency markets have already started to price in a 'higher for longer' rate outlook, driven by the US administration's protectionist and expansionary fiscal policies, which are expected to lead to stickier inflation. QuotedData
• A hotter-than-expected print could unsettle markets, delay Fed rate cuts, and amplify stagflation risks, while a cooler reading might spark optimism for monetary easing and equity gains. investing.com
• As Asian markets navigate a complex landscape of economic indicators and geopolitical tensions, small-cap stocks have emerged as an area of interest, particularly as investors seek opportunities amid fluctuating trade dynamics and monetary policies. Yahoo Finance
• Investors should reduce exposure to Chinese equities and property until policy effectiveness is clearer, and limit investments in export-dependent emerging markets facing tariff risks. MarketSenseAI
• As global markets navigate a complex landscape of trade tensions and economic indicators, Asian stock markets present intriguing opportunities for investors seeking value. Yahoo Finance
• Fragmented markets, entrenched fossil fuel dependencies, and supply chain vulnerabilities continue to challenge energy security and hinder global decarbonization efforts. Policy Center
• The growing momentum of private capital in the UK, and the increasing interaction and intertwining with public markets, presents an opportunity for corporate leaders. McKinsey & Company
• The US and China will increasingly compete directly in multiple spheres ranging from technology, security, health policy, financial markets, and corporate governance. Morgan Stanley Australia
• 48% reported an increase in non-payment risks, especially in markets such as the US, the UK, and Italy. Insurance Business
• As the Asian markets navigate a complex landscape of global trade tensions and economic shifts, investors are increasingly seeking opportunities that offer both potential growth and resilience. Simply Wall St
• The EMDE Investor Taskforce is an industry-led initiative which aims to unlock capital to address climate change risks and tackle the barriers preventing finance from flowing into emerging markets by bringing together leaders from across the UK investment community. JD Supra
• For energy companies, Taiwan Strait instability poses significant risks to shipping lanes, LNG markets, oil prices, and access to Asian downstream infrastructure. The Diplomat

Last updated: 24 June 2025