Read the highlights of this week’s commentary from Helios:
- U.S. inflation remained subdued in May, with the Consumer Price Index (CPI) rising 0.1% month-over-month and 2.4% year-over-year, aligning with expectations. This marks the lowest annual increase since early 2021, reinforcing expectations that the Federal Reserve will maintain its current interest rate stance in the near term.
- Consumer sentiment improved in June, according to the University of Michigan’s preliminary survey. The index rose to 60.5 from 52.2 in May, reflecting increased optimism amid steady prices and a temporary pause in tariffs. This uptick suggests potential resilience in consumer spending moving forward.
- Geopolitical tensions escalated, as Israel conducted military strikes on Iranian nuclear and military facilities. In response, Brent crude oil prices surged over 10% before settling with a 5.7% daily gain on Friday. These geopolitical tensions have elevated fears that a prolonged conflict could push prices higher, potentially impacting global economic stability
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