Guardian Weekly Market Report – Issue 178

Reports of Note Due This Week

Investors will be watching U.S. Leading economic indicators, Existing home sales & New Home sales data, Initial jobless claims and Durable goods orders this week.

• Monday, July 21 – 10:00 A.M. U.S. leading economic indicators.
• Tuesday July 22 – 8:30 A.M. Fed Chair Powell opening remarks at banking conference.
• Wednesday July 23 – 10:00 A.M. existing home sales.
• Thursday July 24 –.  8:30 A.M. Weekly Initial Jobless Claims expected at 229,000 versus last weeks 221,000, 9:45 A.M. S&P flash U.S. services PMI, S&P flash U.S. manufacturing PMI, 10:00 A.M. new home sales.
• Friday July 25 – 8:30 A.M. Durable-goods orders.

Geopolitics

More than 1,100 people have been killed and over 128,000 displaced in Syria’s Sweida province following a week of sectarian clashes between Druze fighters, Bedouins, and government forces. Despite Israeli airstrikes targeting Syrian military positions to protect the Druze, a fragile ceasefire-brokered by the U.S.-is now holding. Israel, coordinating with the U.S. and Syria, delivered humanitarian and medical aid to the region. Syrian authorities began evacuating Bedouin families. While calm has returned, the humanitarian situation remains dire, with destroyed hospitals, scarce supplies, and ongoing efforts to stabilize the province.

Ukrainian President Volodymyr Zelenskyy announced Kyiv has proposed a new round of peace talks with Russia, aiming to accelerate negotiations toward a ceasefire. The offer follows two prior meetings in Istanbul over the past five months, which led only to prisoner swaps. Rustem Umerov, Ukraine’s newly appointed head of the National Security and Defense Council, is leading the outreach. Russia continues its offensive in Donetsk and has reiterated openness to talks, though it maintains maximalist demands. President Trump, after recent escalations in Russian airstrikes, warned of harsher U.S. sanctions if no peace deal is reached within 50 days. The Kremlin acknowledged Trump’s tough rhetoric but affirmed its intent to continue seeking a political settlement—while emphasizing that achieving its strategic goals remains paramount. As diplomacy cautiously resumes, markets may remain sensitive to outcomes that affect European security, sanctions enforcement, and investor demand for safe-haven assets like gold.

Japanese Prime Minister Shigeru Ishiba confirmed he will remain in office despite his ruling Liberal Democratic Party (LDP) and coalition partner Komeito losing their upper house majority in Sunday’s election. The outcome follows their worst lower house performance in 15 years and reflects growing public dissatisfaction over inflation and immigration. Exit polls show opposition parties-especially the nationalist Sanseito party-made notable gains by campaigning on tax cuts and stricter immigration. Ishiba emphasized the need to maintain leadership continuity amid critical tariff negotiations with the U.S. ahead of an August 1 deadline, which could see steep tariffs imposed on Japanese exports. The election results increase pressure on Japan’s fiscal outlook and political stability, particularly as the country manages high public debt and slowing growth. Investors may be monitoring developments closely for potential impacts on yen volatility, trade relations, and demand for traditional safe-haven assets like gold.