Market Wrap: Energy Makes a Comeback
Date: May 18, 2026
Market Overview
European stock indices, including the pan-European STOXX 600, are mostly down, while the main US index futures are also falling due to renewed concerns about rising inflation. However, the German DE40 contract has managed to buck this trend, showing an increase of around 0.36%.
The ongoing conflict between the US and Iran, which has lasted over two months and resulted in the blockage of the Strait of Hormuz, is a significant factor driving current market sentiment. This geopolitical tension is raising fears of a sharp increase in energy prices, prompting major central banks to maintain a hawkish stance on interest rates.
As a result, oil prices are on the rise, with Brent crude surpassing the $110 mark, gaining over 0.5%. The US dollar is trading slightly lower today, with the USDIDX index down 0.14%, allowing for a slight rise in the EUR/USD exchange rate.
Sector Performance
The energy sector is currently the best performer, being the only sector in the eurozone showing solid growth momentum due to rising commodity prices. In contrast, the materials, consumer discretionary, and healthcare sectors are the worst performers, weighed down by concerns over demand slowdown and high financing costs.
The Euro Stoxx 50 index reflects a broad sell-off, with only the energy sector managing to show any resilience. Major declines were noted in finance and industry sectors, with sellers dominating the market.
Top Performers and Laggards
Among the session's top performers, Deutsche Boerse (DB1.DE) saw a 3% increase following positive market reactions to TCI's acquisition of over 5% stake in the company. Infineon Technologies also showed resilience against selling pressure.
On the downside, Intesa Sanpaolo and BNP Paribas led the declines with losses exceeding 3%. Ryanair's shares fell over 4% due to warnings of increased operating and fuel costs, alongside disappointing forecasts for ticket prices during the summer holiday season.
In the tech sector, Samsung Electronics (SMSN.UK) shares rebounded strongly, preventing the Korean index from entering deep correction territory, following the resumption of negotiations with its main trade union.
French advertising giant Publicis (PUB.FR) gained around 2.7% after announcing a $2.2 billion acquisition of US data analytics firm LiveRamp.