Investment Daily: US stocks and Treasuries rallied amid eased geopolitical concerns
12 June 2026
Key takeaways
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US stocks and Treasuries rose.
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European stocks and government bonds rose.
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Asian stocks lacked clear direction.
Markets
US stocks rallied on Thursday amid renewed hopes of geopolitical de-escalation in the Middle East. The S&P 500 rose 1.8%.
US Treasuries rose sharply on lower oil prices amid eased geopolitical worries. 10-year yields dropped 9bp to 4.46%.
European stocks rose on Thursday following recent declines. The Euro Stoxx 50 rose 0.8%. The German DAX edged up 0.1% and the French CAC 40 closed 0.5% higher. In the UK, the FTSE 100 gained 0.5%.
European government bonds rose. 10-year German and French bond yields fell 5bp to 3.03% and 3.80% respectively. In the UK, 10-year gilt yields fell 3bp to 4.90%.
Asian stock markets lacked clear direction on Thursday amid lingering geopolitical uncertainty. Korea’s Kospi ended a choppy session 0.4% higher while Japan’s Nikkei 225 closed little changed (+0.1%). Elsewhere, Hong Kong’s Hang Seng and China’s Shanghai Composite fell 0.7% and 0.2%, respectively. India’s Sensex edged down 0.2%.
Crude oil prices dropped on Thursday. WTI for July delivery fell 2.6% to settle at USD87.7 per barrel.
Key Data Releases and Events
Releases yesterday
In the US, headline PPI inflation rose 1.1% mom and 6.5% yoy, exceeding expectations, while the monthly pace of increase in the core gauge (excluding food and energy) moderated.
The European Central Bank (ECB) hiked its policy rate by 25bp, in line with expectations, reflecting its projections for above-target inflation through 2026 and 2027. It also highlighted upside risks for inflation and downside risks for economic growth in the statement.
Releases due today (12 June 2026)
In India, headline CPI Inflation likely rose further on higher food and transport costs and a modest pickup in core inflation due to some pass-through of higher (imported) input costs.
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