Public Markets 3 Days

Last updated: May 11, 2026, 11:30 PM ET

Geopolitics and Energy Markets

Global energy markets remained highly reactive to the hardening stance between the U.S. and Iran, with oil prices edging higher as traders weighed the prospect of a prolonged closure of the Strait of Hormuz. President Donald Trump rejected Tehran’s offer, branding the peace proposal “garbage,” which subsequently prolonged the effective closure of the vital waterway and saw U.S. inventories drain at an unprecedented pace. In response to rising prices at the pump, the U.S. unleashed another wave of emergency oil releases, with 53.3 million barrels awarded to entities including Marathon Petroleum Corp, while the President simultaneously proposed suspending the federal gas tax. This global energy strain also drove up factory inflation in China to its fastest pace since the pandemic, even as the nation’s exports and imports hit record levels ahead of the Trump-Xi summit in Beijing.

Fixed Income and Central Bank Activity

Treasury yields continued their upward trajectory ahead of expected U.S. inflation data, driven by geopolitical uncertainty while U.S. corporate earnings suggested a robust economy. Japanese Government Bonds followed the retreat of U.S. Treasurys, though Tokyo confirmed continued coordination with Treasury Secretary Scott Bessent on monitoring currency markets, even as April reserve data likely failed to reflect recent intervention. Amid global monetary shifts, the People’s Bank of China saw its swap lines utilized at a two-year high by central banks, signaling increased international demand for the yuan, while a Bloomberg survey now predicts the European Central Bank will hike rates twice this year due to inflation stemming from the Iran conflict. Separately, United Airlines is returning to the market with a junk-rated $256 million municipal bond sale after volatility shelved the transaction last year.

Asia-Pacific Market Reactions and Policy

Asian stocks looked set for gains as AI trade momentum persisted despite the lack of a U.S.-Iran peace deal, but currency markets saw pressure, exemplified by the Singapore dollar weakening amid the ongoing Middle East tensions. In India, the economic fallout from the Iran war is compelling Prime Minister Modi to urge citizens to curb gold purchases and foreign travel, as inflationary pressures mount, potentially leading to a rate-hike jolt for local equities, which are also being constrained by a floundering rupee expected to hit 98 per dollar by year-end. Meanwhile, Japanese metals refiner JX Advanced Metals Corp. saw its shares slide following the announcement of a ¥250 billion ($1.6 convertible bond issuance intended to fund share buybacks. Furthermore, Franklin Templeton is aggressively positioning its fixed income offerings to capture the rising interest from Indian investors in that asset class, aiming to power its next growth phase in the nation.

Corporate Finance and Dealmaking

The private credit space showed signs of cooling, with KKR’s private-credit fund booking a $560 million loss as loan defaults climb, necessitating a $300 million capital injection to bolster the vehicle. This contrasts with activity in other private markets,** where Onex Partners is attempting to raise $1 billion to extend its minority holding in the insurance broker One Digital, tapping the growing secondaries market. In M&A, Byron Allen is acquiring a controlling stake in Buzz Feed for $120 million, paying $3 per share, which will see co-founder Jonah Peretti step down as CEO to lead the company’s AI division. Elsewhere, BMO Financial Group agreed to sell its transportation and vendor-finance businesses to Stonepeak in a deal covering a $10.6 billion portfolio across the U.S. and Canada.*

Regulatory Scrutiny and Political Turmoil

Regulatory oversight intensified across several sectors, with Drone Shield Ltd.’s stock plunging to a three-month low after the Australian financial regulator initiated a review of its disclosures and trading from November. In Washington, the Justice Department subpoenaed The Wall Street Journal regarding an article detailing internal deliberations on military action risks in Iran, drawing criticism over press freedom. Politically, the turmoil in the UK intensified as dozens of Labour leaders demanded Prime Minister Keir Starmer resign following poor local election results, while in the U.S., the Supreme Court cleared the path for Alabama to implement a new congressional map that would eliminate a majority-Black district. In related political developments, Kari Lake, who previously attempted to shutter Voice of America, was named Ambassador to Jamaica.

Sector-Specific Moves and Tech

Wearable camera maker GoPro is reviewing a possible sale after receiving inquiries following its recent expansion efforts into aerospace and defense industries. Meanwhile, telehealth firm Hims & Hers Health swung to a first-quarter loss, citing increased costs associated with its pivot to weight-loss drugs, where it faces rising competition. In digital media, IHeart Media revenue increased. 6% to $884.2 million, driven by demand for digital and podcast advertising, while Webtoon Entertainment issued a cautious second-quarter sales outlook, projecting revenue growth of only 1.7% to 4.6% on a constant currency basis. In the AI sphere, testimony revealed that Microsoft chief Satya Nadella deemed the attempt to remove Sam Altman from OpenAI as ‘amateur city’, as the legal dispute between Musk and OpenAI continues.