A week dominated by the escalation of geopolitical tensions in the Middle East, sending oil prices higher and markets lower. Other factors included developments in trade negotiations and a focus on economic news.

Weekly markets in brief

• US: Week starts with better-than-expected economic data but ends with geopolitical tensions rising.

• Japan: Trade talks and geopolitics take centre stage.

• China: Deflationary pressures could weigh on the economy.

• Europe: Will the European Central Bank (ECB) pause its interest rate cuts?

• UK: UK economy shrinks, labour market cools, pay growth slows.

Global Markets: Trade talks continue, jobs hold strong, and mixed signals from Asia

A more muted week for global markets. In the US, trade talks continue to be the focus, and the jobs market appears to be more resilient than many expected. Europe appears to be in a good place when it comes to inflation and economic growth, and meanwhile some areas of concern remain in China and Japan.

A more muted week for global markets, but with plenty of moving parts coming out of US trade policy.

From an announcement regarding negotiations with the European Union and speculation regarding a US-Japan trade deal, to the ruling from the U.S. Court of International Trade and subsequent appeal – trade policy dominated investor sentiment during the week.