Investment Daily: US stocks ended slightly higher as Treasuries fell
12 May 2026
Key takeaways
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US stocks and Treasury yields rose.
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European stocks were mixed; government bonds fell.
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Asian stocks traded mixed.
Markets
US stocks closed slightly higher on Monday, despite higher oil prices and Treasury yields. The S&P 500 was up 0.2%.
US Treasuries fell amid higher oil prices, a soft 3-year Treasury debt auction and heavy corporate supply. 10-year yields climbed 6bp to 4.41%.
European stocks lacked clear direction on Monday amid ongoing geopolitical tensions. The Euro Stoxx 50 fell 0.3%. The German DAX closed flat, while the French CAC dropped 0.7%. In the UK, the FTSE 100 closed 0.4% higher.
European government bonds fell. 10-year German and French bond yields rose 4bp to 3.04% and 3.66% respectively. In the UK, 10-year gilt yields rose 9bp to 5.00%.
Asian stock markets traded mixed but mostly higher on Monday. Korea’s Kospi surged 4.3% to a new record high amid investor optimism over tech earnings, while Japan’s Nikkei 225 slipped 0.5%. Elsewhere, China’s Shanghai Composite rose 1.1% following upbeat trade and inflation data, as Hong Kong’s Hang Seng closed little changed. India’s Sensex fell 1.7%.
Crude oil prices rose on Monday. WTI crude for June delivery settled 2.8% higher at USD98.1 a barrel.
Key Data Releases and Events
Releases yesterday
China’s headline CPI inflation picked up to 1.2% yoy in April from 1.0% yoy in March, on higher energy prices and a modest rise in core inflation. Meanwhile, PPI inflation accelerated to 2.8% yoy in April from 0.5% yoy in March, driven by the rise in global oil and commodity prices, as well as increased domestic demand for AI-related tech products and electrification.
Releases due today (12 May 2026)
In the US, small business optimism is expected to remain broadly stable, as AI-related optimism offsets the drag from high energy prices. Headline CPI inflation is likely to rise in April.
In Brazil, energy prices should boost headline inflation in April, while core inflation may also edge up, likely remaining sticky in the coming months.
India’s CPI inflation is expected to rise further in April, driven by higher food and fuel prices.
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