Public Markets 24 Hours

Last updated: May 25, 2026, 2:33 AM ET

Energy & Commodities

Oil futures slipped 1.3% in early Asian trade as US-Iran negotiations advanced toward a potential Strait of Hormuz reopening, with Brent crude trading near $68 a barrel. The decline accelerated following reports that Iraqi crude shipments were exiting the Persian Gulf, while European gas prices dropped amid optimism that the conflict could de-escalate. A supertanker carrying Iraqi crude successfully crossed the US naval blockade line into the Arabian Sea as diplomatic talks continued. Meanwhile, Chinese coking coal futures surged by the daily limit after a deadly mining accident in Shanxi province raised supply disruption concerns, lifting related mining stocks across the mainland.

Fixed Income Markets

Japanese government bonds faced deepening downside risks despite oil's retreat, as a gauge of risk compensation rose fastest among major markets since the Iran conflict began. Rising domestic yields are widening the performance gap between regional banks with weaker investment portfolios and those holding stronger securities, according to analysts. European Central Bank officials signaled inflation outlook revisions for June policy meetings, with Governing Council member Martin Kocher warning of potential rate hikes unless a sustainable Iran peace deal emerges. Strategists expect yields to stay elevated even if Middle East tensions ease, citing structural drivers beyond war-related inflation.

Currency Movements

The Indian rupee strengthened 0.8% against the dollar as oil prices dropped and Reserve Bank of India Governor Sanjay Malhotra suggested the currency may be undervalued following recent depreciation. Swap rates hitting multi-year highs are driving Indian debt fund managers into carry trades to boost fixed-income returns. China's yuan faces limited impact from cross-border trading curbs according to Maybank analysts, though HK$250 billion in assets could be affected by tightened capital controls. The ECB is set to lift inflation forecasts at next month's policy meeting, while short-term yields remain elevated as government borrowing costs reached 2007 highs during three months of conflict.

Mergers & Acquisitions

Hong Kong-based conglomerate Jardines completed a $2.4 billion acquisition of Australian radiology group I-MED, marking its first deal since a strategic overhaul and signaling renewed appetite for healthcare assets. Italy's state lender Cassa Depositi plans to raise its Nexi stake to 29.9%, backing the digital payments company's long-term growth strategy. PT Bank SMBC Indonesia sold $1.1 billion in pension loans to BTN as part of a shift away from legacy banking operations. Centerbridge Partners entered talks for a stake in $3 billion real estate firm Merritt Properties amid increased commercial property dealmaking.

Artificial Intelligence & Technology

An AI-driven rally propelled global momentum stocks to their best run on record, with investors favoring companies positioned to benefit from artificial intelligence adoption despite macroeconomic uncertainties. Big Tech companies are dominating bond markets as they race to fund AI data center construction, with US tech giants tapping debt markets for infrastructure expansion. Meta's Andrew Bosworth is spearheading workforce transformation through AI integration, while ECB supervisors summoned banks to address vulnerabilities exposed by latest AI models. UK's AI Security Institute is recruiting alumni from OpenAI and Google to identify emerging risks from artificial intelligence deployment.

Banking & Credit Conditions

Bank lending to UK businesses fell to the lowest level in nearly 30 years as weak economic growth and tighter regulation constrain credit availability for small and medium enterprises. HS2 paid £65 million to consultancies in the run-up to the project's reset, raising questions about taxpayer-funded spending. Financial reforms could inject £1.6 billion into the City of London as Chancellor Rachel Reeves champions the district as an economic growth driver. Australian government banks declined 6% this month as Iran war lifted yields to two-year highs, pressuring state-controlled lenders.

Equity Markets

SoftBank Group plans a ¥260 billion retail bond deal targeting individual investors just two months after a similar offering, as the company seeks to diversify funding sources. Shares linked to one of Indonesia's richest families dropped after FTSE Russell removed the company from global indexes due to concentrated shareholding structures. Robotaxi testing in real traffic is becoming essential for achieving safe, cost-effective autonomy as companies seek to understand road user reactions. West Ham's relegation from Premier League ended a 14-year spell in England's top flight, while Tottenham secured survival in the final matchday.

Commodity Sector Developments

Fertilizer producers cut production as Iran conflict squeezes sulfur supplies, potentially reducing crop yields in developing nations dependent on phosphate applications. Chinese firms accelerated coal plant proposals despite government efforts to rein in growth after rapid expansion in previous years. Gold and silver rose in early trade on hopes for US-Iran diplomatic progress, with spot gold nearing $3,380 an ounce. Aluminum prices surged after the Shanxi mining disaster lifted coking coal futures by the daily trading limit.