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Investment Daily: US stocks and Treasuries rose on eased geopolitical concerns

29 May 2026

Key takeaways

  • US stocks and Treasuries rose.
  • European stocks and government bond yields fell.
  • Asian stocks fell.

Markets

US stocks rose on Thursday following news reports of US-Iran truce extension. The S&P 500 gained 0.6%

US Treasuries rose amid eased geopolitical concerns, softer-than-expected PCE inflation details, and a solid 7-year Treasury debt auction result. 10-year yields fell 3bp to 4.45%.

European stock markets fell on Thursday, with geopolitical developments in the Middle East in focus. The Euro Stoxx 50 fell 0.3%. The German DAX shed 0.3%, while the French CAC 40 lost 0.2%. In the UK, the FTSE 100 closed 0.8% lower.

European government bonds rose. 10-year German and French bond yields both fell 3bp to 2.96% and 3.57% respectively. In the UK, 10-year gilt yields fell 5bp to 4.81%.

Asia stock markets retreated after recent gains on Thursday amid lingering geopolitical uncertainty. Japan's Nikkei 225 and Korea's Kospi both fell 0.5%, as Hong Kong's Hang Seng lost 1.3%. Bucking the regional trend, China's Shanghai Composite edged 0.1% higher as tech/semiconductor shares extended gains. The Indian market was closed for a public holiday.

Crude oil prices trimmed early gains to end mixed on Thursday. WTI for July delivery settled 0.3% higher at USD88.9 a barrel.

Key Data Releases and Events

Releases yesterday

In the US, the headline PCE price index rose 3.8% yoy in April, the highest since May 2023, while the core PCE also modestly accelerated to 3.3% yoy. However, the monthly increase in both headline and core gauges was slightly lower than expected.

The Bank of Korea delivered a hawkish hold at its May meeting amid growth optimism and upside inflation risks. Its forward guidance signals that rate hikes are likely soon.

Releases due today (29 May 2026)

No major data releases. 

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