📣 Market Wrap
This week, markets largely treaded water. In the US, June inflation came in at 2.7% year on year, slightly up from 2.4% in May, as tariffs began to impact prices. However, core inflation (which excludes food and energy) came in at 2.9%, below expectations for the fifth consecutive month, suggesting inflation is cooling more than expected. Many investors still believe that higher tariffs will keep prices from falling too quickly.
However, an alternative view is emerging: while tariffs may be holding prices up, without them, deflation could be a risk. Goldman Sachs pointed out both weak demand and lower economic activity are driving deflationary pressures. Despite this, the Fed refuses to budge on interest rates which has caused Trump to put pressure on Fed Chair Powell. Rumours this week about Trump firing him caused some market jitters, but Powell remains in place for now.
In the UK, June inflation hit 3.6%, higher than expected, driven by fuel, food, and transport costs. This makes a rate cut in August less likely. However, the Bank of England still expect a gradual fall in interest rates as inflation is still expected to fall to around 2% by autumn. Despite inflation concerns, the FTSE 100 hit 9000 points for the first time in history.
📈 Market Data
S&P500: +0.3% WTD | +7.3% YTD
FTSE 100: +0.1% WTD | +8.7% YTD
Gold: -0.2% WTD | +26.6% YTD
Data accurate as at time of sending this briefing. wtd = week to date, ytd = year to date
💎 Spotlight Stock
Each week we want to shine a spotlight on a stock which is new on our platform.
Fresnillo (FRES LN £10.7bn market cap)
Fresnillo is the world's largest primary silver producer and a dominant player in Mexico’s gold mining sector, making it an interesting choice for investors seeking exposure to silver. With over 56 million ounces of silver produced annually, it’s a pure-play on the bullish silver.
The structural supply squeeze in the silver market—driven by declining ore grades, depleted resources, and long permitting timelines—means demand for silver is outpacing supply, making Fresnillo’s assets even more valuable. As global silver output falls, Fresnillo remains well-positioned to capture the upside as industrial demand surges for uses in solar, EVs, and electronics.
