Public Markets 3 Days

Last updated: May 14, 2026, 2:30 AM ET

Global Equity Markets & US-China Tensions

Asian equities slipped modestly as markets awaited clearer signals from the high-stakes summit between US President Donald Trump and Xi Jinping, prompting some profit-taking following a recent tech-driven advance. While the Singapore dollar held steady against the US dollar, traders were focused intently on the geopolitical readout, especially given the backdrop of an ongoing Iran war that has reshaped global energy flows. The meeting itself underscored widening cultural divides, contrasting sharply with friendlier past exchanges, as U.S.-China relations remain combative, even as a previous trade war has settled into an uneasy truce.

The intensifying tech rivalry was evident as China was denied access to Anthropic’s newest AI models, further extending the US lead over Beijing in advanced artificial intelligence capabilities. This technological competition is fueling investment across the sector, exemplified by the record-setting rise of Nvidia, which became the first company to reach a $5.5 trillion market value, while European markets also saw artificial intelligence plays soar as US tech frenzy spreads. Conversely, South Korean stocks saw foreign investors deepen their retreat even as the market climbed to new highs, supported by local inflows related to the AI boom.

Energy Markets & Geopolitical Shocks

The persistent disruption from the nearly 11-week war in the Persian Gulf continues to stress global energy supplies and influence policy, with oil prices edging higher in early Asian trade ahead of the US-China talks. Nationally, India formally requested an extension from the US for its waiver concerning Russian oil imports, as policymakers across Asia are forced to spend foreign-exchange reserves defending currencies battered by the energy price spike. In response to high costs, Japan has increased its coal-power generation while simultaneously cutting back on liquefied natural gas (LNG) output, and refiner Eneos Holdings agreed to buy Chevron's Asia assets for $2.17 billion to secure its footprint.

The outlook for supply recovery remains grim, with the IEA warning that stabilizing the market following the Hormuz supply shock could take months, forecasting a global oil demand contraction of 420,000 barrels per day this year. Meanwhile, the conflict is causing significant stress in manufacturing hubs; activity in China’s primary manufacturing heartland is straining power supplies, and the nation’s refined fuel exports have failed to rebound despite signals of easing export bans. Furthermore, US oil producers are reportedly not drilling enough to compensate, while in South America, Suriname is betting its future on a massive $10.5bn offshore oil development led by Total Energies.

Monetary Policy & Fixed Income

Federal Reserve policy remains a key focus, with Goldman Sachs anticipating further dollar strength as the energy price shock keeps yields elevated amid relatively resilient growth. This sentiment is reinforced by data showing US inflation reaccelerating due to rising energy costs, bolstering bets that the Fed will keep rates "higher for longer," a scenario expected if Kevin Warsh is confirmed. In related developments, the US Treasury has proposed investing idle cash held at the Fed into money markets as another avenue to slightly shrink the Fed’s balance sheet. Across the Atlantic, the European Central Bank’s path is less certain; while Governing Council member Martins Kazaks stated the ECB must hike borrowing costs if crude prices anchor inflation expectations, other comments suggest a June hike is becoming less obvious.

Demand in Japanese fixed income showed resilience, as the auction for 30-year government bonds saw firmer demand compared to the 12-month average, underpinned by attractive higher yields. In credit markets, there is a clear appetite for riskier assets, evidenced by junk-rated firms rushing to reprice and refinance existing debt to take advantage of surging demand for loans and slash borrowing costs. However, the private credit sector is reportedly cooling; firms are citing declining returns due to Fed rate cuts and rising defaults, signaling that the sector's hot streak may be concluding.

Corporate & Sector News

Automotive giant Honda posted its first annual loss since 1957, taking a multibillion-dollar financial hit after deciding to scale back its ambitious electric-vehicle strategy. In contrast, the space exploration theme continues to attract capital globally, with a British fund quadrupling its investment in space-related assets, mirroring the US retail frenzy. Meanwhile, corporate restructuring continues in the tech sphere, as Cisco announced a $1 billion restructuring to facilitate an all-in push toward artificial intelligence, while Canadian IT firm CGI Inc. saw its stock slump over 40% amid AI disruption fears following a CEO change.

In infrastructure and real assets, appetite for AI-related property remains strong, with Blackstone Digital Infrastructure Trust raising $1.75 billion in an upsized IPO for data centers, while geothermal energy firm Fervo Energy’s shares soared 35% following its $1.89 billion debut, utilizing oil and gas drilling techniques for heat power. Furthermore, market attention is turning to India's IPO circuit, where Blackstone-backed Bagmane REIT is set to debut after raising $360 million, which will serve as a gauge for investor sentiment amid jitters in the country's financial markets.

Regulatory and Legal Developments

Regulators are sharpening their focus on corporate compliance, particularly following past misconduct cases; New York prosecutors are signaling a more lenient stance on self-report fraud for Wall Street figures, adopting tactics used against Drexel and SAC Capital. On the M&A front, the Bank of England is considering watering down initial stablecoin rules after industry lobbying suggested plans were "overly conservative." In the UK, private equity backers are reportedly slamming 'runaway' legal costs from top law firms, demanding that costs be shared with buyout groups. In the US, a judge refused to "rubber stamp" a $1.5mn settlement between Elon Musk and the SEC over Twitter stock disclosure, citing ‘red flags’ in the agreement.

Regional and Sectoral Issues

The Middle East conflict is directly impacting regional industries, causing Air New Zealand to forecast a substantial full-year loss due to soaring jet fuel costs, prompting management to consider further service cuts. In Australia, data suggests that output at several steel-making coal mines may be stalling, potentially offering support to commodity prices. Meanwhile, in the UK, manufacturers are warning ministers that new steel tariff changes scheduled for July will cause "significant problems" for their operations. In the US, Walmart is aggressively expanding its logistics network, launching local delivery hubs in a race for speed against e-commerce rivals.