Market Commentary: Monday 18th May

Global bonds remain under pressure as higher oil prices revive inflation concerns and push markets to reassess the central bank outlook. The US 10-year Treasury yield climbed to 4.62%, while Japanese yields surged to multi-decade highs, reflecting growing concern that policymakers may need to stay tighter for longer. Brent crude rose 1.5% back to $111 per barrel as US President Donald Trump warned Tehran that the “clock is ticking” on a peace deal, while talks over reopening the Strait of Hormuz remain stalled.

Risk sentiment is weaker as the bond selloff spills into equities. Asian stocks fell, US and European futures pointed lower, and the dollar extended its recent haven-driven strength. The spotlight this week will be on Nvidia’s earnings, which could determine whether the AI trade can continue to offset the worsening macro backdrop. With more than 80% of S&P 500 companies having beaten estimates, earnings momentum has been a key support for equities, but any disappointment from Nvidia could weigh heavily on tech and the wider market.

• Bitcoin fell 1.7% to $76,901.96
• Ether fell 3.2% to $2,119.08
• Spot gold is little changed at $4,538/oz

**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.