BlockBeats news, on May 16, this week the global market faced a dual shock of inflation and geopolitical tensions. U.S. April CPI and PPI data exceeded expectations across the board, causing markets to quickly lower interest rate cut expectations, with U.S. Treasury yields surging across the board; the 30-year Treasury yield broke above 5.1%, reaching its highest level since 2007. With Kevin Warsh officially approved to succeed as Fed Chair, markets are now repricing for “higher for longer” rates, and even betting on potential future rate hikes.
The situation in the Middle East remains highly tense. The U.S.-Iran nuclear negotiations have been postponed, but both sides continue to send strong signals. The Strait of Hormuz experienced vessel attacks and rerouting of shipping lanes, causing international oil prices to remain elevated this week, with WTI crude briefly surpassing $103.
The UK political scene has also erupted in crisis. Following a disastrous performance in local elections, Prime Minister Starmer faced internal pressure within the Labour Party, with over 90 MPs calling for his resignation. UK equity, bond, and currency markets simultaneously came under pressure, with the pound posting one of its largest declines in recent months.
In the asset markets, the U.S. Dollar Index posted a five-week consecutive gain, recording its largest weekly increase in two months. Gold and silver rose on safe-haven demand but then sharply reversed course. U.S. stocks, after hitting record highs, faced significant selling pressure on Friday.
Additionally, India announced an increase in the gold import tariff and imposed limits on the volume of gold imports to alleviate foreign exchange pressure; meanwhile, Samsung Electronics in South Korea faces the risk of a large-scale strike involving over 50,000 workers, prompting emergency intervention by the South Korean government to mediate.