Equities

US equity markets crept higher, boosted by strong macro data and led by the energy sector. European markets also advanced, although were held in check by inflationary fears. Japan’s stock markets were mixed, as the government extended the Covid-19 state of emergency in Tokyo, Osaka and seven other areas. China saw profit taking after three weeks of gains.

Bonds

The yield on benchmark 10-year US Treasury bonds fell back, and prices rose, after the May unemployment report. Core eurozone bond yields also drifted lower, on gathering expectations that the European Central Bank (ECB) bond-buying programme would be maintained. Yields in peripheral European bond markets moved in line with the core. Corporate bond markets traded quietly on light volumes, while the high yield market was equally subdued. Emerging market debt outperformed the global aggregate index.

Currencies

The euro slipped against the dollar and the yen, while remaining flat against sterling. The dollar rose against all majors, except the yen, which was firmer across the board.

Commodities

Oil prices hit the highest level for two years after OPEC member states forecast an orderly return of Iranian production, thereby maintaining ‘relative stability’.

Responsible investing

The G7 reached initial agreement on a global minimum tax rate of 15%, aiming to ensure that countries have the right to tax a proportion of the profits of large profitable multinationals in the locations where it is generated.