Financial Markets Daily Report18 maig 2026
A sharp risk-off session closed the week, as stalled US–Iran negotiations pushed energy prices sharply higher and reignited inflation concerns. Brent crude rose more than 3% to near USD 110/barrel, amid persistent disruptions in the Strait of Hormuz and continued uncertainty around regional energy flows.
Sovereign bond yields rose sharply on both sides of the Atlantic, as markets further consolidated expectations of a more hawkish policy path. Investors now fully price in around three ECB rate hikes this year, while expectations for a Fed hike by end-2026 continued to strengthen. UK gilts underperformed significantly, with yields rising 15–20bp across the curve and the 30-year yield climbing toward 5.85%, its highest level since 1998.
Equity markets sold off globally, with Asian indices leading declines, while in the euro area losses were led by German equities. In currency markets, the US dollar strengthened further (EUR/USD cross trading around 1.16).