President Trump concluded his China visit with broad pledges of greater cooperation but little in the way of concrete commitments, while Xi Jinping reinforced that Taiwan remains a “very strong red line,” leaving markets to weigh diplomacy against persistent inflation risks.
On Iran, Chinese officials told counterparts they would not supply weapons but would continue purchasing oil, according to news reports — an outcome that tempered some immediate geopolitical fears but left energy demand outlooks intact.
Boeing shares were hit hard after investors pared back expectations for a massive aircraft order from Beijing. The shares slid about 4% as markets had anticipated a commitment for as many as 500 planes; officials now signal any deal is likelier to be closer to 200 aircraft. Xi told visiting US business leaders that Beijing and Washington agreed to stabilise trade relations, but the summit produced few headline transactions.
Global bond markets reacted to rising inflation concerns. Japanese yields surged to multi‑decade highs: the 30‑year bond climbed above 4% — its highest level since issuance in 1999 — while the 20‑year yield reached rates unseen since 1996. UK gilts also weakened as inflation worries compounded political instability at home following a Labour Party revolt against Prime Minister Keir Starmer.
Corporate fixed‑income markets saw record issuance: Alphabet sold the largest yen bond ever issued by a foreign borrower, raising about $3.6 billion in yen‑denominated debt.
Looking ahead, diplomatic calendars remain busy: Vladimir Putin is slated to visit Beijing on May 20, a trip that could further shape geopolitical and market dynamics.
Risk assets slid across the region and in Europe, with benchmarks down roughly 1.5%–2% amid the yield shock. US futures pointed to a decline of about 1%–1.5% on the open, while oil continued its advance — Brent crude rose another 3% to about $109 a barrel — keeping inflation and policy uncertainty squarely in focus.