Global markets ended the week higher, with Wall Street shrugging off the U.S. government shutdown and the S&P 500 breaking past 6,700 for the first time.Despite the political gridlock, equities extended a five-month winning streak, rising roughly 3.5% on the week and over 14% year-to-date. Yet beneath the bullish surface, the currency markets told a more cautious story, shaped by missing economic data, policy uncertainty, and diverging central bank signals.The dollar recorded its worst week since July, slip ...

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: The total number of “mega bankruptcies” filed by corporations with assets valued at more than $1 billion rose about 33% to 32 for the 12 months ended in June compared to 24 in the year-earlier period, according to a report released this week by Cornerstone Research, a San Francisco-based economic and financial consulting firm.    The rise in the largest corpor ...

Group 1 - Gold prices experienced dramatic volatility on July 17, with a drop to $3319.58 per ounce followed by a surge to $3377.17 due to market reactions to news about President Trump's potential dismissal of Fed Chair Powell [1][3] - Trump's denial of the dismissal plan led to a narrowing of gold's gains, closing at $3347.38, reflecting a 0.68% increase [1][3] - The market's concern over the independence of the Federal Reserve has become a significant driver for gold prices, as Trump's ongoing pressure on the Fed raises uncertainties [3] Group 2 - Geopolitical risks, particularly the recent Israeli airstrikes in Syria, have heightened demand for gold as a safe-haven asset, reflecting historical trends where Middle Eastern conflicts boost gold prices [4] - Trump's trade policies, including threats of tariffs on EU imports and a unified tax rate for over 150 countries, have added to market uncertainty, impacting inflation and economic growth outlooks [4]

Short-Term Market Outlook - The market was surprised by the resilience of global stocks, particularly Korean and Japanese stocks [1][2] - Recent news flow has been exceptionally positive, driven by fiscal tailwinds and strong macro data from the US and China [3] - Consensus forecasts for global GDP growth are being raised after a decline in May [4] - The delay in tariff deadlines has contributed to a positive short-term outlook [5] - The short-term outlook for stocks, both in the US and globally, is positive, with expectations of higher levels [5] Long-Term Concerns - Tariffs are expected to be damaging to the US and global economies in the long term [6] - Policy uncertainty poses a risk to US companies [6] - US stocks are expected to suffer from high valuations and ongoing policy uncertainty, leading to higher business costs [7] Currency and Emerging Markets - The recent US dollar strength is attributed to a short-term positioning squeeze [8][9] - A longer-term dollar depreciation trend is expected [9] - Tariffs are expected to have an inflationary impact, potentially leading to higher US yields [10] - Emerging markets (EM) are still considered attractive due to the expected dollar depreciation [11][12] - Dips in EM investments are expected to be bought into by investors [13]