Public Markets 3 Days

Last updated: May 25, 2026, 11:30 PM ET

Energy & Geopolitics

Oil futures dropped 1.3% in early Asian trade after OPEC+ signaled potential output increases, while gold held near $2,340 as a weakening dollar offset risk-on sentiment. A surge in aluminum prices pushed China Hongqiao's Zhang Bo past the $48 billion mark, cementing his position among Asia's wealthiest industrialists. Wheat futures extended their losing streak as traders digested progress in Iran ceasefire negotiations, while European gas dropped on optimism over a potential U.S.-Iran deal that could reopen the Strait of Hormuz. A supertanker with Iraqi crude exited the Persian Gulf amid ongoing talks, the first such departure since the conflict began, signaling tentative relief for crude flows. The risk premium for stocks over bonds continued to narrow, a trend that at times precedes subpar equity returns, as investors weighed geopolitical de-escalation against sticky inflation data.

Fixed Income & Currencies

Japanese government bonds extended gains tracking overnight Treasury rallies as traders priced in a September Federal Reserve rate cut. The Treasury curve flashed a "higher-for-longer" warning as a key yield gap tightened to its narrowest in a year under new chairman Kevin Warsh. South Korea's bond market was pricing excessive BOK rate hikes, creating buying opportunities in short-term debt, according to NH Amundi. India's rupee strengthened as oil prices fell on U.S.-Iran deal hopes and the central bank suggested the currency was undervalued. The dollar extended falls on similar optimism, while the Czech premier urged an interest rate cut despite rising inflation risks from energy prices.

Equities & Corporate Moves

Taiwan overtook India as the world's fifth-largest stock market, powered by a breakneck rally in TSMC. Italian stocks hit a 26-year high as energy and chip shares surged. Chinese chip stocks rose in Hong Kong on optimism over a potential Huawei technology breakthrough. Xiaomi's bearish bets hit a record ahead of earnings amid EV market concerns and rising memory costs. A hot IPO lifted geothermal power companies, giving the overlooked technology a second life amid tech sector demand. The AI rally drove the best run for global momentum stocks on record, even as the Iran war threatened growth. ASX Ltd. ramped up capital spending to upgrade critical market infrastructure after a year of regulatory and stakeholder pressure.

Asia Market Regulation & Capital Flows

China tightened controls on overseas stock trading, a move that could affect HK$250 billion ($32 of assets and impact the wealth of trading tycoons like the billionaire who lost $1.7 billion in a single day. Singapore told banks to speed up account openings for wealthy clients to strengthen its wealth-hub position after money-laundering cases caused delays. The top Africa bourse moved to tighten algo-trading and market-access rules to prevent disruptive errors. Ghana planned to increase gold purchases from large-scale producers to 30% of output from June, starting a new reserve accumulation strategy.

Commodities & Supply Shocks

The energy shock was not over yet, analysts warned, as even with a Hormuz deal, shipping 1,500 stranded vessels would be a complex process. A summer heat wave in Asia threatened to spike gas prices further as the region grappled with the Strait's near-closure. India's gas power generation plunged to a six-year low as the Iran war hit fuel shipments, straining electricity supplies during a scorching summer. The threat of explosion from a toxic chemical tank in Garden Grove, Calif., lessened, allowing over half of 40,000 displaced residents to return home. Codelco's union threatened protests as fallout spread from the overstated copper output scandal.

Brazil & Latin America

Two groups submitted bids for Copasa, advancing Minas Gerais' plan to privatize one of Brazil's largest water utilities in a deal that could be one of the country's biggest this year. Spanish utility Cox ABG Group took a 20% bridge loan to fund a $4.2 billion asset acquisition in Mexico, placing shares as collateral. Mexico hosted Iran's World Cup team after U.S. authorities refused them entry amid military tensions.

Europe & Central Banks

The ECB was likely to revise its inflation outlook upward in June, President Lagarde said, as outgoing member Villeroy noted no second-round effects yet from the energy spike. UK business lending fell to a 30-year low amid weak growth and tighter regulation. UK chancellor Reeves urged ministers to 'buy British' in critical sectors including steel and AI. Hungary signaled a May 28 deal with the EU on releasing frozen funds. Italian bank CDP planned to raise its stake in payments group Nexi after a potential €9 billion bid from CVC.

Tech, AI & Infrastructure

The AI fever gripped Japanese retail traders, doubling average daily trading volume on the prime market. AI expanded from enterprises to Main Street, with agents now managing bakery spreadsheets. The UK government’s AI Security Institute, staffed by OpenAI and Google alumni, became a model for countries assessing AI risks. Tech giants dominated bond markets as they raced to build AI data centers, prompting calls for oversight to protect national security.

Market Structure & Trading

The ASX increased spending to upgrade infrastructure after a year of turmoil. The top Africa bourse tightened algo-trading rules. MUFG explored options for its stake in Indonesia's Danamon, including a take-private or increasing public float. BlackRock's Saigal saw sufficient factors to justify a Fed cut under Warsh. The medical system abandoned women post-childbirth, a social issue separate from markets but noted in coverage.

Other Notable Moves

The JGBs fell on a possible technical correction after Monday's gains. The gap between earnings and bond yields narrowed, a bearish signal for stocks. The Strait of Hormuz reopening remained a question mark without formal details. The Nigerian GDP eased on a slowdown in the oil sector. Guinea, the top bauxite producer, planned export controls for June to bolster prices. The first FT newsletter noted Trump's cautious tone on Iran peace talks and a U.S. consumer spending squeeze.