Tuesday, 12 May 2026

Overnight Headlines 12th May 2026

Multi-Asset Morning Pack – Tuesday 12 May 2026

06:00 UK | Asia mixed, oil bid, US futures softer, CPI ahead
Overnight tone
Risk tone turns more fragile as Korea tech-tax headlines hit Asia and Iran keeps oil bid.
US cash closed firmer Monday, but pre-market futures are modestly lower. Brent is holding above $104, Treasury yields are edging higher, and the dollar is stronger against JPY and KRW while sterling and euro soften.

US cash close

IndexCloseChange
Dow Jones49,704.47+95.31 / +0.19%
Nasdaq Composite26,274.125+27.049 / +0.10%
S&P 5007,412.84+13.91 / +0.19%
Russell 20002,870.64+9.431 / +0.33%
VIX18.38+1.19 / +6.92%

Asia handover

Asia is mixed rather than outright risk-on. Japan is firmer, with the Nikkei up around 0.65%, but Korea is the clear drag after AI-tax and “citizen dividend” headlines hit the chip complex. China is also softer, while Hong Kong is modestly higher. Australia and New Zealand are weaker.

MarketLevelMove
Nikkei 22562,821.19+0.65%
Shanghai4,208.005-0.40%
Shenzhen Comp.15,757.357-0.89%
Hang Seng26,486.63+0.30%
ASX 2008,680.50-0.24%
KOSPI7,641.21-2.31%
Straits Times4,943.68+0.02%
NZX 5013,054.83-1.18%

Overnight headlines

  1. Trump says Iran ceasefire is on “life support” after rejecting Tehran response — Reuters
  2. Korea roils markets by floating “citizen dividend” from AI-tax proceeds — Bloomberg
  3. Oil gains on Iran deadlock; stocks swing on Korea headlines — Bloomberg/Swissinfo
  4. US-Iran peace hopes fade as Hormuz risks remain centre stage — Guardian
  5. US CPI and oil inventories headline Tuesday’s calendar — Investing.com
  6. Hedge funds bet on biofuels to profit from Iran oil shock — FT
  7. Germany’s AfD sees support surge after criticising Trump’s Iran war — FT
  8. France presses EU to crack down on platforms including Shein and Temu — FT
  9. US communications regulator targets Chinese tech over security risks — FT
  10. Peltz in talks to raise funds for Wendy’s go-private bid — FT

US futures

FutureLastMoveImplied open
Dow Fut49,787.0-5.00 / -0.01%-0.47 / 0.00%
S&P Fut7,426.5-10.25 / -0.14%-9.34 / -0.13%
Nasdaq Fut29,324.75-99.25 / -0.34%-104.91 / -0.36%
Russell 2k Fut2,873.9-5.00 / -0.17%-13.74 / -0.48%

Commodities

Energy remains the macro pressure point. WTI is near $99 and Brent is above $104 as the market prices continued Iran/Hormuz risk.

CommodityPriceMove
WTI Jun ’2698.81+0.75%
Brent Jul ’26104.80+0.57%
Natural Gas Jun ’262.922+0.41%
RBOB Gas Jun ’263.6154+0.43%
ULSD Heating Oil Jun ’264.0048+0.91%
Uranium May ’2686.15UNCH

FX

PairPriceMove
USD/JPY157.55+0.25%
EUR/USD1.1757-0.21%
GBP/USD1.3584-0.17%
EUR/GBP0.8652-0.03%
AUD/USD0.7231-0.22%
NZD/USD0.5956-0.12%
USD/KRW1,483.00+0.61%
USD/CNY6.7932-0.02%

Rates

Treasury yields are a touch higher across the curve ahead of CPI, with the 10-year at 4.421% and the long bond just under 5%.

TreasuryYieldChange
US 2Y3.962%+1.5bp
US 5Y4.082%+1.3bp
US 7Y4.249%+1.1bp
US 10Y4.421%+0.9bp
US 20Y4.984%+0.7bp
US 30Y4.992%+0.5bp

Calendar – Tuesday 12 May

UK timeEventMarket focus
09:00Eurozone Industrial ProductionEUR / Bunds
10:00Germany / Eurozone ZEW surveysEUR / European equities
13:30US CPI / Core CPIRates, USD, equities
19:00US Treasury StatementTreasury supply / fiscal read-through
23:30Australia Wage Price IndexAUD / RBA expectations
00:50 WedJapan Current Account / Trade BalanceJPY / Japan rates
Desk take: Monday’s US close was constructive, but the overnight handover is less clean. Korea is the equity pressure point, oil is the macro pressure point, and CPI is the day’s main risk event. A hot print would test the recent equity resilience given yields are already nudging higher and Brent is back above $104.

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