Public Markets 3 Days

Last updated: May 14, 2026, 11:33 PM ET

Energy & Commodities

Oil futures headed for a weekly advance as the critical Strait of Hormuz remained effectively closed, with efforts to end the Iran war in limbo and disruptions that have upended global markets set to linger. Saudi Arabia reported to OPEC that its crude production collapsed further to the lowest since 1990 as the Iran war choked off exports from the Persian Gulf, while the kingdom told the cartel that global oil-demand growth would reach only 1.17 million barrels per day this year, down from a previous forecast of 1.38 million. Global inventories have fallen at a record pace during the Iran war, and oil executives predict a reckoning within weeks if the Strait of Hormuz remains shut. Meanwhile, India's state-run refiners raised gasoline and diesel prices for the first time in four years to limit growing losses and tame domestic demand as global crude prices remain elevated.

In industrial metals, copper rallied above $14,000 a ton to close in on a fresh all-time high as a rebound in Chinese demand and mounting supply risks outweighed concerns about the Iran war's impact on global growth. However, the red metal also extended its retreat from a record-high close as accelerating US inflation reduced the chance of rate cuts and a stronger dollar made the metal more expensive for many buyers. Gold headed for a weekly drop as war-driven surge in US inflation fueled expectations for higher interest rates, though prices rose in early Asian trade supported by continued uncertainties in geopolitical tensions.

Fixed Income

The WSJ Dollar Index rose 0.31% to 95.49, marking its fourth consecutive trading day of gains, as accelerating US inflation reduced market expectations for Federal Reserve rate cuts. Treasury yields recovered from an early decline to settle mixed as US indicators supported predictions of tight monetary policy. The Consumer Price Index rose 3.8% annually in April after weeks of war in Iran, with higher energy costs replacing tariffs as the primary driver of elevated prices for Americans.

JPMorgan Asset Management warned that its bullish view on the high-grade corporate bond rally faces two potential stumbling blocks: an even bigger surge in technology spending and waning retail demand. Meanwhile, junk-rated firms rushed to reprice and refinance existing dollar debt, seizing on renewed investor appetite for riskier loans to slash borrowing costs. Firms are borrowing more than expected in the US leveraged loan market as they take advantage of strong investor appetite for riskier debt.

Asia-Pacific Markets

JPMorgan Chase raised its Taiex bull-case target to 50,000 for the second time in less than a month, recommending Taiwanese stocks as "the most pure-play exposure to the global AI buildout." Asian stocks were set to rise Friday after Wall Street hit fresh records, buoyed by a rally in artificial intelligence shares, strong corporate earnings and further signs of resilience in the US consumer. However, investor concern is mounting over a possible rollback of Japan's corporate governance reforms, a key driver of foreign investment that threatens a rally pushing equities to record levels.

Japan's corporate goods prices surged in April by the most in 12 years, in another sign of how the Iran war is boosting inflationary pressures and supporting the case for the Bank of Japan to raise interest rates. India's foreign-exchange reserves remain strong enough to defend its currency against the Iran-war driven oil shock, with buffers well above stress levels seen during the taper tantrum, according to economists. The nation is also mulling a steep cut in taxes paid by foreign investors on its bonds, while considering a significant reduction in the taxes paid by foreign investors on the nation's bonds as authorities seek to align policies with global norms and attract inflows. India more than doubled tariffs on gold imports as the government seeks to curb non-essential imports to protect the rupee.

Asian currencies mostly weakened against the dollar in the morning session as traders focused on the Trump-Xi summit. Emerging-market currencies and stocks fell on concern that a ceasefire between the US and Iran was on the brink of collapse.

US-China Summit

President Donald Trump said his Chinese counterpart Xi Jinping likes the idea of buying more US oil as the leaders met in Beijing. Oil prices wavered as Trump met Xi to discuss the Strait of Hormuz, with the president expected to urge the Chinese leader to help ease Middle East tensions by persuading Iran to end the war. However, the Iran war has cast a shadow of uncertainty on both superpowers, dimming early hopes they could address the larger issues fraying their relationship. A trade war that once threatened to freeze commerce between the two countries has given way to an uneasy truce as Trump prepares to meet Xi.

Corporate Deals

Tate & Lyle Plc received a takeover offer from Ingredion Inc., raising the prospect of another famous brand leaving London's stock market. BYD Co. is negotiating with Stellantis and other European carmakers about taking over underutilized factories in the region, according to the Chinese company's top international executive. Tesla will invest $250 million into its German factory to increase production of battery cells for electric vehicles, moving to boost output in Europe as its sales in the region regain strength. LVMH agreed to sell Marc Jacobs to WHP, the latest in a series of disposals by the Paris-based group of smaller, underperforming brands.