Financial Markets Daily Report20 May 2026
With no known progress on the peace negotiations in the Middle East, yesterday's session was driven by adjacent factors. Energy prices closed mixed as US Vice President JD Vance said neither side of the conflict wanted to take military action. Brent prices fell slightly to settle at USD 111/barrel while TTF prices rallied to close up 3%, at nearly EUR 52/MWh.
Government bond yields rose on both sides of the Atlantic, especially the long-term ones, as investors reassessed if the hawkish shift from the central banks would remain for longer. This repricing was slightly more significant in the US, appreciating the dollar against peers and leaving the EUR/USD cross at 1.16.
In equity markets, euro area indices were mixed, with the German DAX leading the gains and the Spanish IBEX leading the losses, while US indices fell weighed down by tech stocks. Investors will keep the focus on the developments in the Middle East and on NVIDIA's results, the biggest company in the world by market capitalization, due today after market closing.