The minutes of April’s Federal Open Market Committee meeting are due today, with markets braced for a predominantly hawkish tone as officials weigh rising inflation pressures.
Earnings spotlight also lands on Nvidia, which reports today and faces lofty expectations after a blockbuster run for chip stocks.
Diplomacy between two of the world’s biggest powers deepened this week as Russian President Vladimir Putin concluded a state visit to China. In talks with President Xi Jinping the leaders pledged to strengthen ties and signed a package of agreements spanning energy, technology and infrastructure, including a joint statement meant to deepen the Russia‑China comprehensive strategic partnership.
Global long‑term bond yields have climbed to their highest levels in two decades as the war in Iran lifts inflation expectations. The US 10‑year yield has traded as high as about 4.69% amid fears of more persistent price pressures. President Trump has warned of a major strike if talks fail, while Iran has said it would retaliate beyond the Middle East if attacked, keeping risk premia elevated.
The financial sector is also moving into digital currency territory: Intesa Sanpaolo and ABN AMRO joined a 25‑bank European consortium exploring a euro‑denominated stablecoin aimed at challenging dollar dominance in the space.
Central banks in Asia have taken action to shore up currencies and markets. India’s central bank intervened after the rupee slid to record lows, while Indonesia’s central bank raised rates by 50 basis points to defend the rupiah. ECB Governing Council member Pierre Wunsch warned a June rate hike is likely if the Iran conflict remains unresolved.
Market action was mixed: European equities gained about 0.8%, mainland China traded mostly flat and Japanese indexes fell between 1% and 1.5%. US futures looked set to open marginally higher. Oil prices eased roughly 2.5%, with Brent near $108 a barrel, as investors balanced weaker near‑term demand signals against sustained geopolitical risk.
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