Executive Summary
Global equities ended the week mostly lower as hotter-than-expected U.S. inflation, rising Treasury yields, and stalling U.S.–Iran talks weighed on sentiment. The S&P 500 hit a record on Thursday before pulling back, eking out a small weekly gain, while European and most Asian indices fell. Brent crude surged nearly 8% on renewed Middle East tensions, and gold pulled back.
Market Snapshot
Weekly performance across major global indices (week ending 15 May 2026):
| Index | Friday’s Closing Price | Weekly Change (%) | Direction |
| DJIA | 49,526.17 | -0.17 | ▼ |
| S&P 500 | 7,408.50 | 0.13 | ▲ |
| NASDAQ Composite | 26,225.15 | -0.08 | ▼ |
| FTSE 100 (UK) | 10,195.37 | -0.79 | ▼ |
| CAC 40 (France) | 7,952.55 | -1.97 | ▼ |
| STOXX Europe 600 | 606.92 | -0.85 | ▼ |
| Nikkei 225 (Japan) | 61,409.29 | -2.08 | ▼ |
| CSI 300 (China) | 4,859.59 | -0.25 | ▼ |
| Hang Seng (Hong Kong) | 25,962.73 | -1.63 | ▼ |
| Brent Crude | 109.26 | 7.87 | ▲ |
| Gold | 4,555.80 | -3.49 | ▼ |
Foreign Exchange
(For the week ending 15 May 2026)
| Pair | Friday’s Close | Week’s Change |
| EUR/USD | 1.1662 | -0.007 (-0.6%) |
| USD/JPY | 158.382 | 1.553 (0.99%) |
| GBP/USD | 1.3391 | -0.0165 (-1.22%) |
| USD/CHF | 0.7842 | 0.004 (0.51%) |
| AUD/USD | 0.7214 | 0.0005 (0.07) |
U.S. Markets Overview
Most major U.S. indexes finished lower as concerns over accelerating inflation, rising Treasury yields, and elevated oil prices outweighed AI-driven optimism. The S&P 500 hit a record on Thursday before pulling back Friday, with energy leading sectors and consumer discretionary, real estate, and materials lagging. The 10-year Treasury yield rose to around 4.59%, its highest in over a year.
April CPI rose 3.8% year on year — the sharpest jump since May 2023 — while PPI climbed 6.0% year on year, its largest monthly increase since March 2022. Chicago Fed President Goolsbee said the U.S. has an “inflation problem,” fuelling concerns the Fed may keep policy restrictive for longer. Retail sales rose 0.5% in April, in line with expectations, while initial jobless claims edged up to 211,000.
European Markets
The STOXX Europe 600 fell 0.85% as stalling U.S.–Iran talks raised fears of higher energy prices and inflation. Germany’s DAX lost 1.59%, France’s CAC 40 fell 1.97%, Italy’s FTSE MIB slipped 0.35%, and the UK’s FTSE 100 declined 0.37%.
Eurozone industrial production grew just 0.2% in March, slightly below expectations. French unemployment hit 8.1% in Q1, the highest since early 2021, while Germany’s ZEW sentiment improved to -10.2. In the UK, PM Keir Starmer faced pressure to step down amid ministerial resignations and speculation around a Labour leadership challenge, weighing on both stocks and sterling. UK retail sales fell 3.0% year on year in April.
Asian Markets
Japan
The Nikkei 225 fell 2.08% on profit-taking in semiconductor and AI names, while the broader TOPIX gained 0.90%, lifted by financials benefiting from rising domestic yields. The yen weakened to around JPY 158 against the dollar, and the 10-year JGB yield rose to 2.72% — its highest since 1997 — as markets increasingly priced in an imminent BoJ rate hike. April’s corporate goods price index jumped 4.9% year on year, well above expectations, while household spending fell 2.9% in March.
China
Chinese equities ended lower after early gains tied to the Trump–Xi summit faded. Presidents Trump and Xi concluded their two-day Beijing summit on 15 May, with both sides signalling support for stable relations and China prepared to increase U.S. agricultural and energy purchases — though no major rollback of export restrictions was announced. April PPI rose 2.8% year on year (fastest since July 2022) and CPI rose 1.2%. Exports surged 14.1% year on year, with exports to the U.S. up 11.3% despite ongoing tariff tensions.
Commodities
Oil
Brent crude rose 7.87% to $109.26 a barrel as U.S.–Iran peace talks stalled. The Strait of Hormuz has remained closed since the conflict began, with WTI peaking at $112 earlier. The IEA announced its largest emergency oil stock release on record, with 32 member countries set to release 400 million barrels — though that equates to just ~4 days of global consumption, underscoring the importance of reopening the Strait. Energy was the best-performing S&P 500 sector for the week.
Gold
Gold fell 3.49% to $4,555.80 as rising Treasury yields and a firmer U.S. dollar weighed on non-yielding assets, despite ongoing geopolitical uncertainty.
Week Ahead
- U.S. housing data and Fed commentary: Housing starts, existing home sales, and Fed speakers are in focus after the hot inflation prints.
- U.S.–Iran negotiations: Oil markets remain sensitive to any progress in reopening the Strait of Hormuz.
- Bank of Japan: Markets are watching for further signals on the timing of the next rate hike.
- Europe: UK political developments around Labour leadership and sterling remain in focus.
For a primer on assets that sit outside these public markets, see our guide to alternative investments.
Disclaimer
Issued by Trivesta Funds Pty Ltd ACN 627 270 900 (Trivesta Funds), a Corporate Authorised Representative (AR No. 1274820) of Trivesta Capital Ltd ACN 126 975 282, AFSL 320497 (Trivesta Capital). Trivesta Funds is authorised to provide financial services in connection with the Trivesta Protected Yield Fund (Fund). The information on this page is general only and does not take into account your objectives, financial situation or needs, and does not constitute legal, tax, financial or investment advice. The Fund is available only to wholesale clients (including sophisticated investors) under section 761G or 761GA of the Corporations Act 2001 (Cth). Offers to invest in the Fund will only be made via an Information Memorandum (IM) issued by Trivesta Funds. Investment is subject to risks, including capital loss, delays in repayment and loss of income. Past performance is not a reliable indicator of future performance. Returns, income and capital preservation are not guaranteed. This content includes material originally produced by one or more third parties and re-shared for general information only. Trivesta Funds does not endorse, verify or take responsibility for the accuracy or completeness of any third-party content, and views expressed are those of the original authors and not necessarily those of Trivesta Funds or Trivesta Capital.
Any forward-looking statements in this content are based on assumptions and Trivesta’s current views as at 18/05/2026. They are not guarantees, and actual outcomes may differ. Visit www.trivesta.com.au for further information.
