Public Markets 8 Hours

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

Global Bond Market & Interest Rates

Global bonds extended their selloff as inflation fears intensified, with Japanese government bond yields hitting 15-year highs amid a rout that's raising concerns about fiscal sustainability. The 10-year German bund climbed to its highest level since 2011, while U.S. Treasury yields continued their upward trajectory as oil prices surged. This bond market turmoil threatens to derail the AI-driven stock rally, according to Morgan Stanley strategists, who warned equities face a significant pullback as the global bond selloff intensifies. In currency markets, the euro came under pressure as long-dated eurozone government bond yields rose further, while Japanese five-year bond auctions drew weaker demand than average as elevated oil prices fueled inflation concerns.

Energy & Commodities

Oil prices edged higher as a tenuous cease-fire in the Middle East kept markets on edge, with Brent crude climbing amid persistent supply concerns. European natural-gas prices broke above 50 euros a megawatt-hour as the Iran conflict dragged on with little sign of resolution, while copper extended its retreat due to deepening inflation fears tied to the geopolitical tensions. The surge in energy costs pushed mortgage costs higher in North America and Europe despite central banks keeping rates on hold, with U.S. consumers facing an extra $40 billion in fuel expenses due to the Iran conflict. Energy markets have become increasingly volatile as commodity prices continue to defy traditional market logic, creating uncertainty for both consumers and businesses.

Corporate Developments

Ryanair suspended its guidance after warning of weakening prices into the key summer season and a spike in jet fuel costs, sending its shares falling sharply. In the tech sector, Wall Street firms raced to lift price targets on Japan's memory-chip maker Kioxia Holdings after it gave a stronger-than-expected outlook, while Samsung Electronics' shares jumped after management resumed high-stakes wage negotiations with its largest labor union. Meanwhile, Anglo American agreed to sell its Australian steelmaking coal mines to Dhilmar Ltd. for as much as $3.88 billion, completing its exit from the steelmaking coal business as part of a portfolio simplification ahead of a merger with Teck Resources.

Regional Market Impacts

Stock futures slipped amid mounting costs of the Middle East conflict, with the FTSE 100 declining as oil prices rose and the pound stalled. In Asia, the Indonesian rupiah hit a record low and bond yields surged as trading resumed after a holiday, with local markets swept up in the global selloff fueled by inflation fears. Despite geopolitical headwinds, Switzerland's economy grew faster than expected in the first quarter, weathering a spike in energy prices and a strengthening franc that each took effect at the outbreak of the Iran war. Meanwhile, British dealmaking surged 250% as global buyers bypassed the country's political flux, putting London's M&A advisers on track for their best year in more than a decade.