Oil and gold jump as Trump says Iran talks are progressing but warns of renewed strikes

• Major U.S. stock indexes rose in early trading on Tuesday, marking the start of a holiday-shortened week following the Memorial Day break. • The S&P 500 reached a new all-time record high, driven largely by a significant surge in semiconductor and chip-related stocks.

• The US stock market for the week of May 25, 2026, experienced a narrow rally primarily driven by mega-cap technology and AI-related stocks. • Market performance was heavily influenced by geopolitical tensions in the Middle East, which impacted oil prices and inflation expectations more than traditional economic indicators.

• Asian stock markets declined on Tuesday following new U.S. military strikes on Iran. • The strikes undermined previous optimism that a diplomatic agreement to reopen the Strait of Hormuz was close to being reached.

• Indonesia is launching a new digital data platform designed to help regional governments map export potential and expand their access to global markets. • To counter global geopolitical uncertainty, the government is aggressively pursuing trade agreements, including the ratification of Comprehensive Economic Partnership Agreements (CEPA).

• The International Finance Corporation (IFC) committed a record $71.7 billion to private companies and financial institutions in developing countries during fiscal year 2025. • Leveraging over 60 years of experience, the IFC operates in more than 100 nations to unlock private investment and create inclusive growth opportunities.

• The European Central Bank (ECB) is monitoring forward-looking indicators, including surveys and a wage tracker, to assess price stability within the euro area. • ECB officials noted a slight upward revision in wage growth, though they stated it is currently too early to make a definitive judgment on the trend.

• Financial markets opened the week of May 26, 2026, with a "risk-on" sentiment following signals from US officials and President Trump that a deal with Iran is nearing completion. • Trading volumes remained low across global markets due to bank holiday closures in the United States and the United Kingdom.

• European consumer discretionary earnings plummeted by over 12% in Q1 2026, marking the worst performance of the current earnings season according to MSCI Europe data. • The decline highlights the sector's extreme vulnerability to geopolitical instability, specifically noting how economic slowdowns in hubs like Dubai directly impact luxury markets in Paris and Milan.

• The STOXX Europe 600 Index has risen by 3.00% as investors react positively to hopes for increased geopolitical stability. • Investors are shifting focus toward European dividend stocks to secure consistent income and create a hedge against economic uncertainty.

• The European Union has seen a significant increase in state aid as member nations shift toward more aggressive subsidy strategies. • This policy shift is primarily driven by the need to compete with China's state-backed industrial model and the United States' Inflation Reduction Act.

• European shares reached their highest levels in over two months on Monday, with the Pan-European Stoxx 600 trading near record highs last seen in late February. • The market surge was driven by reports that the United States and Iran are negotiating a deal to end their conflict and secure the Strait of Hormuz.