EU economy forecast to slow down amid rising inflation following energy shock - EU Reporter

• Singapore Airlines and Air New Zealand announced on Thursday, May 28, plans to expand their joint flight network between Singapore and New Zealand. • The expansion aims to address increasing travel demand between the two nations and facilitate better connectivity to key markets across Asia and Europe.

• The KOSPI index declined on the 28th, trading at 8,157.11 (down 71.59 points) following a record-breaking all-time high the previous day. • The downturn is driven by profit-taking pressure, with major semiconductor leaders Samsung Electronics and SK Hynix falling by 2.44% and 3.43%, respectively.

• European financial ETFs are currently outperforming their U.S. counterparts, driven by contrasting risk and return profiles over a five-year period. • The rally is characterized by a divergence in expense ratios and dividend yields, suggesting different value propositions for investors in each region.

• The European Central Bank's (ECB) May 2026 Financial Stability Review warns that conflict in the Middle East has caused a significant energy supply shock. • This geopolitical instability is driving up inflation risks and threatening overall economic growth across the region.

• ECB Vice President Luis de Guindos warned on Wednesday that the risk of a market correction is "elevated" as global stock indices continue to hit record highs. • De Guindos cited a volatile combination of outsized market valuations, fiscal challenges, and vulnerabilities within private credit as primary drivers of this instability.

• Asia-Pacific stock markets opened lower on Thursday as investors closely monitored the progress of ongoing negotiations between Iran and the United States. • Major indices saw declines across the region, including Japan's Nikkei 225 falling 0.76%, Australia's S&P/ASX 200 dropping 0.75%, and South Korea's Kospi sliding 0.29%.

• Ditto (Thailand) Public Company Limited announced the launch of Thailand’s first "Blu Green Token," marking a significant milestone in the country's digital asset landscape. • The token is scheduled for public subscription and trading on the Digital Asset Exchange starting in the third quarter of 2026 (3Q26).

• Hong Kong has surpassed Switzerland to become the world's largest cross-border wealth hub for the first time. • The shift reflects a significant migration of global assets and wealth management services toward the Asia-Pacific region.

• Three months into the conflict in Iran, global markets have split into distinct winners and losers as the war persists. • Persistently high oil prices are driving renewed inflation fears, forcing policymakers to struggle with economic stability.

• Wall Street stocks remained relatively flat on Wednesday, holding near record highs as investors maintained a cautious stance. • Crude oil prices declined as market participants reacted to potential progress in peace negotiations between the United States and Iran.

• U.S. stocks reached new record highs on Wednesday, with the S&P 500 edging up by nearly 0.1% following a decline in oil prices. • High yields have pushed average long-term U.S. mortgage rates to their highest levels since last summer, potentially limiting corporate borrowing for AI data center expansion.