The weekend brought a flurry of significant news impacting global politics and financial markets. Here’s a comprehensive overview of the key events:

Iran announced a sombre event over the weekend, stating that an Israeli strike on one of its compounds resulted in the loss of two of its generals. The attack adds another layer of tension to the already fraught relations between Iran and Israel, signalling potential escalations in regional conflicts.

In a positive turn for the global economy, reports from China indicate a resurgence in factory activity. This revival is seen as a sign of recovery, suggesting that the world’s second-largest economy might be on the path to overcoming the recent economic slowdown. The implications for global supply chains and trade dynamics are cautiously optimistic.

The Federal Reserve Chair, Jay Powell, has offered a glimmer of hope in the fight against inflation. Powell’s recent statements suggest a belief that US inflation rates will continue to cool in the coming months. This projection is crucial for businesses and consumers alike, as inflation rates have a direct impact on purchasing power and economic stability.

The Japanese yen experienced a notable weakening against the dollar, spurred by robust US data. This shift raises concerns about potential intervention by Japanese financial authorities to stabilize the currency. A weaker yen impacts Japan’s import costs and has broader implications for global trade and investment flows.

The weekend saw a climb in US treasury yields, following data that pointed to more stubborn inflation than anticipated. This rise in yields reflects growing investor expectations about the Federal Reserve’s interest rate policies, crucial for borrowers and savers alike.

In commodities news, oil prices saw a 1% increase, reaching a five-month high. This uptick is attributed to expectations of rising demand, painting a complex picture for global economies as they balance recovery efforts with inflationary pressures.

In a move that could tighten global oil markets, Mexico announced plans to halt some of its oil exports. This decision aims to prioritize domestic needs but is likely to have ripple effects on global supply and pricing, especially in a time when energy markets are already volatile.

In the corporate sphere, Tesla made headlines by increasing the prices of its Model Y cars in the US by $1,000. This price adjustment reflects broader trends in the auto industry, where manufacturers are grappling with supply chain issues and changing consumer demand patterns.