Weekly Market Insights – 11 May 2026

Resilient U.S. economic data continued to contrast with softer sentiment indicators, as stronger job creation, factory orders, and AI-driven investment activity offset weakening consumer confidence and slowing productivity growth. Inflation pressures remained elevated in parts of Europe due to higher energy costs, while China’s services sector showed improving domestic demand despite ongoing trade uncertainty. Geopolitical tensions persisted, with renewed instability around the Strait of Hormuz and continued escalation in Ukraine shaping investor sentiment throughout the week.

Equity markets advanced further, supported by robust corporate earnings and continued momentum in technology and AI-related stocks, with U.S. and Japanese indices reaching new highs. European equities posted modest gains despite renewed tariff tensions, while Chinese markets benefited from the reopening of mainland exchanges. Bond yields edged lower globally, supporting credit markets and emerging market debt, as commodities reflected a more constructive risk backdrop with gains in metals and declines in oil prices amid easing concerns over Middle East disruptions.