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Investment Daily: US stocks ended mixed with geopolitical development in focus

19 May 2026

Key takeaways

  • US stocks and Treasuries were mixed.
  • European stocks and government bonds rose.
  • Asian stocks mostly fell.

Markets

US stocks ended a volatile session mixed on Monday amid geopolitical headlines and interest rate volatility. The S&P 500 closed 0.1% lower. The tech-heavy Nasdaq lost 0.5% while the Dow Jones Industrial Average was up 0.3%.

The US Treasury yield curve steepened modestly. 10-year yields ended flat at 4.59% as 2-year yields fell 3bp to 4.04%.

European stocks rose on Monday despite lingering geopolitical uncertainty. The Euro Stoxx 50 ended 0.4% higher. The German DAX gained 1.5%, and the French CAC rose 0.4%. In the UK, the FTSE 100 was up 1.3%.

European government bonds rose. 10-year German bund yields slipped 2bp to 3.15%, while 10-year French bond yields fell 4bp to 3.78%. In the UK, 10-year gilt yields dropped 7bp to 5.10%.

Asian stock markets mostly fell on Monday amid growing inflation concerns. Japan’s Nikkei 225 dropped 1.0% as JGB yields hit multi-decade highs. Chinese equities weakened on weaker-than-expected activity data, with Hong Kong’s Hang Seng and China’s Shanghai Composite down 1.1% and 0.1%, respectively. Elsewhere, India’s Sensex rose 0.1%, while Korea’s Kospi rebounded 0.3% after Friday’s loss.

Crude oil prices rose on Monday. WTI crude for June delivery settled 3.1% higher at USD108.7 a barrel.

Key Data Releases and Events

Releases yesterday

China’s April activity indicators missed expectations and showed weaker domestic demand amid some initial impacts of the global energy shock. Retail sales growth slowed to 0.2% yoy from 1.7% yoy in March, partly reflecting the unfavourable base effect from last year’s trade-in subsidies. Meanwhile, industrial production growth eased to 4.1% yoy from 5.7% yoy in March, as energy-intensive industries drove the slowdown, despite robust high-end manufacturing. Property sector activities also remained under pressure, while fixed-asset investment (FAI) contracted.

Releases due today (19 May 2026)

No major releases today.

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