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Last updated: May 15, 2026, 5:30 AM ET

Global Markets Extend Losses as Trump-Xi Summit Fails to Deliver Breakthrough

U.S. and global equity futures slumped in early trade with little catalyst beyond the ongoing Beijing summit, while Asian markets opened broadly lower despite an overnight Wall Street rally. Energy costs remained the dominant concern: Brent crude climbed above $107/bbl on persistent Strait of Hormuz disruption fears, and surging oil prices dragged emerging-market equities and currencies lower for the second consecutive session. Bond markets offered no reprieve—U.S. Treasuries sold off alongside global peers as traders repriced inflation risk upward, and Japan's government bond yields marched to multi-year highs across the curve on the back of war-driven cost pressures. Sterling, meanwhile, fell to a one-month low after Manchester Mayor Andy Burnham announced a parliamentary bid that could open a path to challenge Prime Minister Keir Starmer.

Summit Optics Disappoint, Boeing Caught in the Middle

The Trump-Xi summit produced incremental pledges—Beijing agreed to expand agricultural and aviation purchases—but failed to deliver the sweeping trade de-escalation markets craved. Boeing shares slid as investors judged the commitments insufficient, even as President Trump announced a new jet order from China that, if finalized, would mark a significant recovery for the planemaker in its largest export market. Treasury Secretary Bessent signaled the two sides would begin formal AI safety discussions, though no timeline was provided. The broader trade picture remains fraught: a post-mortem on the tariff war chronicled how months of brinkmanship yielded little beyond an uneasy truce, and administration officials escalated rhetoric on Chinese AI ambitions and espionage, suggesting friction will persist well beyond the handshake photo ops.

Westminster Crisis Weighs on UK Assets

Political risk in the UK intensified as the pound tumbled to a one-month low and gilts sold off sharply after Burnham secured a pathway to challenge Starmer for the Labour leadership. Sterling extended losses against the dollar, and gilt yields spiked as investors priced in the possibility of loosened fiscal rules under a new prime minister. Senior business leaders warned that Westminster turmoil was damaging investment decisions and the UK's international reputation, adding a layer of uncertainty atop an already fragile fiscal outlook.

Energy Squeeze Intensifies

The Strait of Hormuz crisis deepened as global oil inventories fell at a record pace during the Iran conflict, with executives and analysts warning of a reckoning within weeks if the waterway remains contested. Oil futures edged higher in a rangebound session as Iran insisted on controlling the chokepoint and both Washington and Beijing urged freedom of navigation. On the supply side, the UAE announced plans to double crude export capacity bypassing Hormuz by 2027, a structural shift that could reshape Middle East energy flows. Meanwhile, copper extended its retreat from record highs as hot U.S. inflation data reduced rate-cut expectations and a stronger dollar made the metal costlier for international buyers.

Inflation Fears Ripple Through Global Bond Markets

Persistently higher oil prices pushed global sovereign yields broadly higher, with the U.S. 10-year leading the charge as markets scaled back expectations for near-term monetary easing. Japan's corporate goods prices surged by the most since 2014, strengthening the Bank