Market Summary - May 1, 2026
By Kathleen Brooks, Research Director UK
Overview
The FX markets are currently in focus as US stocks begin May on a positive note. The USD/JPY has seen significant movement, dropping nearly 2% this week, influenced by energy price spikes and potential interventions by Japanese authorities.
Currency Market Movements
The USD/JPY is trading at 156.60, marking its lowest level since late February. The Bank of Japan (BOJ) has intervened to stabilize the yen amidst rising inflation driven by energy prices. Speculation surrounds possible interventions in the crude oil futures market by Japanese officials, which could significantly alter market dynamics.
In the broader FX landscape, the British pound has reached its highest level against the USD since mid-February, while the EUR/USD has also shown strength, rising over 1.6% despite ongoing geopolitical tensions in the Strait of Hormuz.
European Market Performance
European markets are largely closed for a public holiday, with the FTSE 100 down 0.5%, primarily due to declines in mining stocks and NatWest. Despite reporting strong profits, NatWest's share price fell by 4% as the CEO expressed caution regarding the impact of rising energy prices and increased provisions for bad loans.
US Market Resilience
US indices are showing resilience, with a strong start to May following a record high in April. The tech sector, led by companies like Google and Apple, has been a significant driver of this rally. Despite the ongoing conflict in the Middle East and its impact on oil prices, US markets appear less affected, with expectations of positive earnings revisions supporting growth.
Oil Market Insights
US oil majors, including Chevron and Exxon, reported a decline in Q1 earnings, attributed to weak oil prices and operational challenges. Despite this, both companies anticipate a recovery in the coming quarters, with their share prices showing positive movement in pre-market trading.