Market Rundown: Trump Delays Iran Strike Decision, Oil Prices Dip, Gold Falls, UK Retail Sales Decline

Geopolitical Tensions and Market Reaction

• 🌍 President Trump has decided to delay a decision on striking Iran for two weeks, signaling a potential window for diplomacy.
• 🛢️ This cautious optimism led to a 2% drop in Brent crude prices overnight, tempering recent gains.
• 🤝 European and Iranian diplomats are set to meet in Geneva for high-level talks, the first since the conflict began.

Gold Market Dynamics

• 🥇 Gold prices are down over 2% for the week, marking their worst weekly drop in three weeks.
• 📉 The slight easing of Middle East tensions has dented safe-haven demand for gold.
• 📈 Despite the recent dip, gold is still up by more than a quarter this year, with analysts divided on its future outlook.

Federal Reserve and Interest Rates

• 🗣️ President Trump has intensified his criticism of Fed Chair Jerome Powell, calling him "destructive" for maintaining steady interest rates.
• 📉 Trump advocates for an unprecedented 2.5-point interest rate cut, claiming current policy costs the US hundreds of billions.

UK Economic Performance

• 📉 UK retail sales saw a sharp decline of -2.7% in May, the steepest drop since 2023.
• ⚠️ This figure presents a challenge for the labor government, which needs to boost UK growth to meet spending commitments.

Stock Market Movers

• 🏗️ Home Depot is reportedly entering a bidding war for GMS, a building products distributor.
• 💰 This follows an earlier $5 billion offer from QXO, indicating a potential consolidation in the building supplies sector.