Executive Summary
Global equities advanced over the holiday-shortened week as rising hopes for a U.S.–Iran 60-day ceasefire extension and a potential reopening of the Strait of Hormuz drove oil prices sharply lower and lifted risk appetite. Several major U.S. benchmarks closed at record highs, Japan’s Nikkei 225 surged nearly 5%, and European equities ended modestly higher. Brent crude tumbled ~11%, while gold edged up.
Market Snapshot
Weekly performance across major global indices (week ending 29 May 2026):
| Index | Friday’s Closing Price | Weekly Change (%) | Direction |
| DJIA | 51,032.46 | 0.9 | ▲ |
| S&P 500 | 7,580.06 | 1.43 | ▲ |
| NASDAQ Composite | 26,972.62 | 2.39 | ▲ |
| FTSE 100 (UK) | 10,409.28 | -0.54 | ▼ |
| CAC 40 (France) | 8,183.34 | 0.83 | ▲ |
| STOXX Europe 600 | 626 | 0.14 | ▲ |
| Nikkei 225 (Japan) | 66,329.50 | 4.72 | ▲ |
| CSI 300 (China) | 4,892.12 | 0.97 | ▲ |
| Hang Seng (Hong Kong) | 25,182.39 | -1.65 | ▼ |
| Brent Crude | 92.05 | -11.1 | ▼ |
| Gold | 4,560.50 | 0.87 | ▲ |
Foreign Exchange
(For the week ending 29 May 2026)
| Pair | Friday’s Close | Week’s Change |
| EUR/USD | 1.1653 | 0.0032 (0.28%) |
| USD/JPY | 159.27 | 0.252 (0.16%) |
| GBP/USD | 1.3444 | 0.0011 (0.08%) |
| USD/CHF | 0.7837 | –0.0028 (-0.36%) |
| AUD/USD | 0.7164 | 0.0016 (0.22) |
U.S. Markets Overview
Major U.S. indexes rose during the holiday-shortened week, with several benchmarks hitting record highs as sentiment was supported by U.S.–Iran peace hopes, falling oil prices, and continued AI momentum. The Nasdaq led gains, while the Russell 2000, S&P 500, and S&P MidCap 400 also advanced solidly. Markets were closed Monday for Memorial Day. Reports that the U.S. and Iran were moving toward a 60-day ceasefire extension and a reopening of the Strait of Hormuz supported risk appetite, though fresh U.S. strikes on Iranian targets briefly complicated the narrative.
April PCE rose 3.8% year on year — the highest reading since May 2023 — while core PCE accelerated to 3.3%, its hottest since November 2023. Fed Governor Lisa Cook said she was prepared to raise rates if inflation worsened, while Vice Chair Philip Jefferson said inflation risks remained “tilted to the upside.” Q1 GDP growth was revised down to 1.6% from 2.0%, while April durable goods orders surged 7.9%. The 10-year Treasury yield fell to around 4.44% from 4.56% as oil prices declined.
European Markets
The STOXX Europe 600 advanced 0.14% as investors looked for progress on a U.S.–Iran agreement. Germany’s DAX rose 0.87%, France’s CAC 40 gained 0.83%, and Italy’s FTSE MIB added 1.06%, while the UK’s FTSE 100 slipped 0.54%. The London Stock Exchange was closed Monday for the late May bank holiday.
ECB meeting minutes signalled that some members were open to raising rates, warning the energy price shock had been large and “highly persistent,” with several officials publicly flagging a likely June hike. German unemployment unexpectedly fell to 6.3% in May, Italian Q1 GDP was revised up to 0.3%, and EU passenger car registrations grew 5.1% year on year in April. UK shop price inflation accelerated to 1.2% year on year in May, partly reflecting higher shipping and raw material costs tied to the Middle East conflict.
Asian Markets
Japan
The Nikkei 225 surged 4.72% to historic highs, with the broader TOPIX up 1.66%. Technology and AI-related shares led the rally as the tentative U.S.–Iran 60-day ceasefire extension eased concerns over Japan’s energy import bill. Tokyo’s core CPI rose just 1.3% year on year in May, decelerating for a sixth consecutive month and adding uncertainty to the BoJ’s June rate-hike debate. The 10-year JGB yield fell to 2.66% from 2.76% as softer inflation and global bond market relief reduced risk premiums. The yen was little changed at around JPY 159.3 against the dollar.
China
Chinese equities were mixed, with the CSI 300 up 0.97% but the Shanghai Composite down 1.08% and Hong Kong’s Hang Seng falling 1.65%. April industrial profits jumped 24.7% year on year, accelerating from 15.8% in March, supported by stronger energy and raw materials earnings, though consumer-facing sectors remained weak. The CSRC escalated its crackdown on illegal cross-border brokerage activity, fining Tiger Brokers, Futu Holdings, and Longbridge Securities, triggering sharp declines in offshore-listed Chinese brokerage shares and weighing on Hong Kong sentiment.
Commodities
Oil
Brent crude tumbled 11.1% to $92.05 a barrel as reports indicated the U.S. and Iran were moving toward a 60-day ceasefire extension and a reopening of the Strait of Hormuz. Sentiment held firm despite reports of fresh U.S. strikes on Iranian targets, with end-of-week reports suggesting a deal was largely done and awaiting final approval.
Gold
Gold edged up 0.87% to $4,560.50, with safe-haven demand fading as geopolitical risks eased but partially offset by softer Treasury yields.
Week Ahead
- U.S.–Iran ceasefire: Markets will watch for final approval of the 60-day extension and any progress on reopening the Strait of Hormuz.
- ECB June meeting: A rate hike is widely expected after hawkish signals from board members.
- Bank of Japan: Softer Tokyo CPI complicates the June rate-hike debate; markets will look for further guidance.
- U.S. data: Focus on May jobs report and ISM surveys for direction on growth and inflation.
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