Market Wrap: Stocks and Metals Dip as Trump-Xi Summit Fails to Break Iran Deadlock
Date: May 15, 2026
Market Overview
Market sentiment has turned bearish as investors focus on the ongoing US-Iran deadlock, overshadowing strong earnings reports. Concerns over rising energy costs and inflation have reignited fears of a recession, particularly in manufacturing-heavy regions like Germany and France.
Indices Performance
European indices are trading significantly lower, with the Polish WIG20 down 1.8%, the Italian FTSE MIB down 1.6%, and the French CAC40 also down 1.6%. The Euro Stoxx 50 and the UK’s FTSE 100 are both down approximately 1.4%. The Swiss market shows slight resilience, down only 0.2%, attributed to its concentration in defensive sectors like Health Care and Consumer Goods.
Key Stock Movements
European markets were led lower by a 4.3% drop in materials and a notable sell-off in the tech sector, with semiconductor companies such as ASML and Aixtron experiencing declines of up to 4.6% and 7.3%, respectively. However, Italian chip-maker Technoprobe saw a remarkable 35% increase following a positive outlook upgrade for 2026.
HSBC is struggling with its $4 billion investment plan in private credit funds, facing a $400 million loss from a failed loan linked to a collapsed UK firm. Despite this, HSBC remains committed to competing in the asset class.
Delivery Hero shares surged by 40% after CEO Niklas Östberg's resignation and the involvement of an activist investor, with expectations of a potential sale of its South Korean business to address €2.25 billion in upcoming bond maturities.
BP is considering selling its Egyptian natural gas assets as new CEO Meg O'Neill aims to reduce debt and focus on more profitable projects, following a significant drop in local production.
Foreign Exchange Market
The US dollar index has gained for the fifth consecutive session, rising by 0.2% amid the lack of progress in the Iran conflict post-summit. Risk currencies have suffered, with the Australian dollar down 0.8% and the New Zealand dollar down 0.7%. The Japanese yen remains stable, while the EUR/USD pair has decreased by 0.2% to 1.165.
Precious Metals and Cryptocurrencies
Precious metals are experiencing a sharp correction due to the strength of the US dollar, with gold dropping 2% to $4,560 per ounce and silver plummeting 5.7% to approximately $79 per ounce. Cryptocurrencies are also facing a broad sell-off, with Bitcoin down 0.8% to $80,800 and Ethereum down 1.5% to $2,265.
Economic and Political Developments
The UAE is accelerating the construction of a second West-East oil pipeline to bypass the Strait of Hormuz, aiming to secure oil exports amid the Iranian blockade. This project will allow the UAE to transport crude directly to the Gulf of Oman.
During the Trump-Xi summit, both leaders expressed a desire to end the Iran war and maintain open shipping lanes, although China is hesitant to take on responsibility. Trump stated that the US no longer relies on the Strait, while China focuses on trade stability.
In the US, Fed Governor Stephen Miran has resigned, supporting incoming Chair Kevin Warsh's approach to a "narrow mandate" and aggressive balance sheet reduction. Warsh inherits a challenging economic environment with inflation at 3.8% and high public debt levels.