USA
During last week, U.S. equities extended gains as resilient macro data and strong earnings outweighed inflation concerns. Q1 real GDP grew 2.0% annualized, while April CPI accelerated to 3.8% YoY and core CPI to 2.8% YoY, keeping Fed-cut expectations cautious. Initial jobless claims fell to 209k, confirming a still-tight labor market, and the U.S. composite PMI stayed expansionary at 51.7. The Dow closed at a record 50,579.70, while the S&P 500 posted its 8th consecutive weekly gain; weekly moves were: Dow +2.13%, S&P 500 +0.88%, Nasdaq +0.45%. Tech and AI-linked earnings momentum supported risk appetite, while oil/geopolitical risks remained a key macro-overhang.
Europe
European markets rallied as technology shares gained on AI optimism and investors welcomed signs of progress in U.S.–Iran talks, despite weaker growth signals. Euro area inflation rose to 3.0% in April from 2.6%, while the European Commission projected slower 2026 growth of 0.9% for the euro area and inflation at 3.0%, highlighting stagflation-like pressure from energy costs. The eurozone PMI weakened sharply to 47.5, indicating contraction. The STOXX Europe 600 rose 0.73% on May 22 to 625.12, its best weekly performance in seven weeks; the DAX led gains, while FTSE 100, CAC 40 and IBEX 35 also benefited from improved risk sentiment and lower bond-yield pressure.
Japan
Japan’s market performance was strong, supported by lower inflation, robust GDP data and global tech momentum. Q1 GDP expanded 2.1% annualized, helped by consumer and government spending, while April CPI slowed to 1.4% YoY, reducing immediate pressure on the Bank of Japan to tighten aggressively. Japan’s composite PMI remained in expansion at 51.1, though it fell to a five-month low. On May 22, the Nikkei 225 rose 2.68% to 63,339.07, and the TOPIX gained 1.00% to 3,892.46, driven by semiconductor, metals and exporter strength. The key risk remained Japan’s exposure to imported energy prices, especially given Middle East-related oil volatility.
China
China delivered mixed signals: industrial production slowed, but services and selected technology-linked manufacturing remained resilient. Official data showed April industrial output growth of 4.1% YoY, with manufacturing up 4.0% and electronics manufacturing up 15.6%, while retail sales grew only 0.2% YoY, pointing to weak household demand. April official manufacturing PMI was 50.3, still slightly expansionary, while non-manufacturing PMI fell below 50. Equity markets rose on May 22 as regional risk appetite improved: the Shanghai Composite gained 0.87% to 4,112.90, and the Hang Seng rose 0.86% to 25,606.03. Overall, Chinese equities were supported by policy expectations and tech resilience, but restrained by soft consumption, property-sector weakness and external-demand risks.