Global Economy on High Alert as US-Iran Tensions Escalate

The global economic landscape is set to remain volatile as tensions between the US and Iran continue to escalate, causing energy prices to rise and inflation to creep higher. The conflict has been marked by repeated strikes and naval blockades against vessels crossing maritime chokepoints, exacerbating supply chain disruptions.

This week will see major companies such as Apple, Microsoft, Amazon, Meta, and Samsung announce their earnings, which are likely to have a significant impact on equity markets. Investors will be closely watching these results for clues about the future direction of the global economy.

The Federal Reserve's July policy decision is also imminent, coinciding with key data releases including Q2 GDP figures, income and outlays reports, CB consumer confidence, trade balance, employment costs, and industrial production numbers. The Bank of England will set its Bank Rate, while the Eurozone will release GDP and inflation data.

In Asia, the Bank of Japan rate decision is expected to be a major highlight, along with statistical releases on retail sales, unemployment, and PMIs from China. The Chinese Communist Party's July Politburo meeting will also take place, serving as a mid-year checkup on the country's economic performance.