

Ceasefire Boosts Risk Appetite, Japan’s Policy Divide, and Powell Stays Cautious: PALvatar Market Recap, June 25 2025
Jun 25, 2025
Investor confidence is buoyed by a ceasefire between Israel and Iran, pushing the S&P 500 closer to record highs. Meanwhile, Japan faces a dilemma over rate hikes, and Powell remains cautious about U.S. monetary policy. French consumer confidence is reported as weak, while Spain's GDP growth holds steady at 0.6%. The ongoing debates around global inflation and geopolitical risks are key drivers of market sentiment.
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Ceasefire Lifts Market Optimism
- The S&P 500 nears record highs due to a calming ceasefire between Israel and Iran, boosting investor risk appetite.
- This peace reduces demand for safe haven assets like gold and the dollar.
Bank of Japan's Policy Divide
- Bank of Japan officials are divided: some push for earlier rate hikes if inflation rises faster.
- Others prefer current accommodative policy due to US tariff uncertainties.
Powell's Cautious Rate Approach
- Fed Chair Powell remains cautious, showing no rush to cut interest rates.
- His focus is on preventing inflation from rising again, despite falling US Treasury yields.