Public Markets 3 Days

Last updated: May 18, 2026, 5:31 AM ET

Bond Market Turbulence

Global bond yields surged as investors priced in fresh inflation pressures, with U.S. Treasury and Japanese government yields climbing to multi‑year highs. In Europe, the 10‑year German Bund spiked to its highest level since 2011, lifting euro‑zone sovereign benchmarks and prompting a sell‑off in risk assets. The rout prompted strategists at Morgan Stanley to warn that the artificial‑intelligence‑driven equity rally could unravel if the bond sell‑off persists, while G‑7 finance chiefs are set to focus on the bond market’s impact on the global outlook.

Energy, Commodities and Currency Moves

Oil prices edged higher on a tenuous cease‑fire in the Middle East, a development that kept markets on edge after President Trump’s latest warning to Iran. European natural‑gas contracts breached €50 per megawatt‑hour as traders saw little prospect for a quick resolution to the conflict. The heightened geopolitical risk pushed gold lower, with the precious metal slipping amid rising U.S. yields and lingering inflation concerns. Meanwhile, FTSE 100 futures slipped and the pound stalled as oil’s upward drift weighed on risk sentiment.

Corporate Restructuring and Deal Activity

Anglo American announced a sale of its Australian steel‑making coal assets for up to $3.875 billion, completing its exit from coal ahead of a planned merger with Teck Resources. A parallel agreement to divest additional coking‑coal mines for as much as $3.88 billion reinforces the miner’s portfolio simplification. In the financial sector, Goldman Sachs floated a risk‑transfer vehicle tied to a private‑market loan portfolio, signaling growing demand for credit‑risk solutions. Separately, Vin Fast outlined a plan to shed roughly $6.9 billion of debt by spinning off two Vietnamese factories, a move aimed at stabilising the electric‑vehicle maker’s balance sheet.

Equity Sentiment in Europe and Aviation

South Korean equities rebounded from the brink of correction as Samsung’s labor‑talk progress lifted market confidence, offsetting broader bond‑yield stress. Samsung shares jumped after management resumed high‑stakes wage negotiations, underscoring the stock’s sensitivity to labor‑cost dynamics. In contrast, low‑cost carrier Ryanair saw its shares tumble after warning of weaker summer pricing, delayed bookings and a surge in jet‑fuel costs, prompting the airline to suspend its guidance later in the week.

Health, Growth and Regional Outlooks

The CDC confirmed a handful of U.S. cases linked to the Ebola outbreak in the Democratic Republic of Congo and Uganda, highlighting the virus’s cross‑border reach. Uganda responded by postponing an annual religious holiday, reflecting the public‑health impact on social events. Despite the broader energy shock, Switzerland posted stronger‑than‑expected first‑quarter growth, absorbing a stronger franc and higher energy prices. In France, Finance Minister Roland Lescure projected a Q2 bounce, aiming to steer the euro‑zone economy clear of recession.