Public Markets 3 Days

Last updated: May 13, 2026, 8:30 AM ET

Geopolitical Tensions & Energy Markets

Global markets remained mixed as traders awaited the highly consequential summit between President Donald Trump and Xi Jinping, which carries major ramifications for trade and technology supply chains. Energy markets showed pronounced volatility; oil futures slipped following a three-day rally as investors waited on developments in U.S.-Iran negotiations, even as satellite imagery confirmed that oil jetties at Iran’s Kharg Island were empty again, curtailing export capacity. The protracted Middle East conflict continues to drain global oil stocks at a record pace, with the IEA projecting inventories to decline by 2.6 million barrels daily on average in 2026, far exceeding prior estimates, while the damage to the UAE’s Habshan gas plant suggests full repairs will not be complete until 2027. This supply shock is already impacting Asia; China’s April auto sales plunged 21.5% due to falling gasoline vehicle demand, and India may need to raise retail fuel prices if the conflict persists.

Fixed Income & Central Banks

Mounting geopolitical risk, particularly from the Middle East conflict, is forcing central banks and investors to recalibrate their positions. The European Central Bank is expected to hike rates twice this year as inflation accelerates, according to a new survey, while Eurozone government bond yields eased slightly tracking movements in U.S. Treasurys. In the UK, domestic politics are creating sharp volatility, making Gilts a ‘half-hour trade’ as investors grow wary of long-term wagers due to the fractious political environment surrounding Prime Minister Keir Starmer’s leadership, though sterling did recover after the PM rejected resignation calls. Japanese investors, meanwhile, offloaded the most US sovereign debt in nearly four years, abruptly reversing Fed policy bets following the latest inflation data, though Japan’s 10-year bond auction still saw firm demand on the back of higher yields.

Corporate Dealmaking & Sector Moves

Consolidation is reshaping key industrial sectors globally. In the defense space, Czech arms group CSG made a formal offer for a stake in French-German tank maker KNDS, signaling further attempts to consolidate European defense assets. Elsewhere, North American gold production is set to concentrate as Equinox Gold and Orla Mining agreed to merge in a deal creating an $18.5 billion entity, though the transaction was valued at approximately $5.1 billion in the definitive cash-and-stock agreement. In the UK, testing and inspection firm Intertek is leaning toward a final takeover offer from private equity giant EQT AB valued at £10.6 billion, with EQT simultaneously tapping Qatari funding for its separate bid for a Volkswagen AG unit. Meanwhile, property giant Blackstone Inc. walked away from a proposed $4 billion deal with New World Development after failing to secure management control.

Technology & AI Investment

The race for artificial intelligence dominance is driving massive capital deployment and lobbying efforts in Washington, D.C. Major AI hyperscalers are now exploring investments in small modular nuclear reactor fuel to secure long-term, stable power sources for their data centers. Simultaneously, lobbying by firms like OpenAI and Anthropic has reached a fever pitch as they hire staff and open D.C. offices to influence federal lawmakers, while legal battles surrounding OpenAI’s corporate structure continue to surface. Chinese tech firms are showing mixed results amid heavy investment; Tencent maintained double-digit profit growth, whereas Alibaba’s profitability remains pressured by intense spending on AI and competition in food delivery. Furthermore, the visit of Nvidia CEO Jensen Huang to Beijing alongside President Trump spurred a surge in Chinese AI stocks based on expectations of securing H200 chip supply.

Automotive & Infrastructure

The global automotive sector is navigating energy shocks and competitive pressures. Chinese EV maker BYD Co. is negotiating to potentially take over underutilized factories from Stellantis NV and other European automakers, while also promoting its new ‘flash charging’ technology capable of five-minute top-ups. Japanese automaker Nissan Motor projects a return to net profit this fiscal year, indicating that recent restructuring moves are beginning to take hold after seven consecutive quarterly losses. In infrastructure, Spanish engineering firm TSK Electronica y Electricidad SA saw shares rise after successfully raising €150 million ($176 in a sizable main market IPO. Elsewhere, major US tech firms are taking action to secure critical mineral supply chains, with one firm building the first large-scale US cobalt refinery signing supply agreements for hand-dug metal from the DRC.

Financial Services & Governance

Regulatory scrutiny and governance questions are testing market confidence across several financial areas. Concerns are mounting over valuations within the private credit space, where a detailed look at one Blue Owl fund’s holdings has raised complexity issues, even as BlackRock recommends staying invested in credit markets for income to navigate volatility. In the U.S., the SEC is reviewing a plan to end its ‘gag rule’, which currently allows settlements without admitting wrongdoing, a policy criticized by figures like Elon Musk. Meanwhile, in corporate governance debates, some chief executives are being cautioned against scrapping quarterly earnings reports, as this move prioritizes executive convenience over market transparency. Financial services firms in Europe reported mixed results: Allianz booked €3.69 billion in Q1 net profit driven by strong property-casualty results, while Dutch lender ABN Amro beat expectations on cost control.

Emerging Markets & Political Fallout

Emerging markets are grappling with localized political instability and the ongoing impact of the Middle East conflict on commodity flows. India is taking aggressive measures to defend the rupee, as the government more than doubled import tariffs on gold and silver to curb non-essential imports and shore up foreign exchange reserves, despite Prime Minister Modi’s belt-tightening push creating pessimism locally. South African assets are exhibiting relative resilience, with the rand shrugging off impeachment threats against President Ramaphosa, suggesting investors favor the continuation of economic reforms. In a bizarre domestic political standoff, a Philippine Senator with an arrest warrant remains holed up in the Senate building two days after re-emerging publicly. In London, Uzbekistan’s national investment fund saw its shares rise in its debut after the government sold a $604 million stake.

US Domestic & Social Issues

Developments in the US ranged from housing issues to political ethics. Concerns over corporate age structure persist, evidenced by commentary on the rise of the American corporate gerontocracy, while companies like Deloitte and Zoom cut paid family leave, signaling a retreat from previously offered benefits. In New York City, Mayor Zohran Mamdani’s administration is moving to expedite occupancy of empty affordable housing units, while simultaneously facing opposition fundraising over $1 million to fight his agenda. Adding to geopolitical uncertainty, President Trump repeated military threats against Iran ahead of his China visit, while simultaneously proposing suspension of the 18.4-cent-a-gallon federal gas tax, a move analysts suggest would only save drivers a few dollars monthly.