Weekly Market Pulse - Week ending May 29, 2026
Market developments
Equities: Global equities posted broad gains on the week, with U.S. indices climbing to fresh record highs. In Asia, South Korea's KOSPI was a standout, adding 3.55% on Friday alone to bring its May return to a remarkable 28.45%, driven by a frenzy in memory chip stocks including Samsung and SK Hynix. A key macro backdrop for the week was growing optimism around a potential U.S.-Iran peace deal, which lifted sentiment across risk assets.
Fixed Income: U.S. Treasuries headed for their best week since the start of the U.S.-Iran war, as falling oil prices and peace deal optimism drove a broad-based rally in credit markets. May proved to be a record month for European bond issuance, with volumes exceeding €238 billion, the busiest since January and a record for the month of May.
Commodities: Oil dominated the commodity narrative this week, with crude prices on pace for their biggest monthly decline since the onset of COVID-19 in 2020. Brent crude fell roughly 20% in May to around $92 a barrel by Friday and WTI dropped to approximately $86, as markets aggressively priced in the prospect of a U.S.-Iran ceasefire that could ease supply disruptions stemming from the conflict.
Performance (price return)
SECURITY |
PRICE |
WEEK |
1 MONTH |
3 MONTH |
YTD |
Equities ($Local) |
|
|
|
|
|
S&P/TSX Composite |
34,769.14 |
0.86% |
4.35% |
1.25% |
9.64% |
S&P 500 |
7,580.06 |
1.43% |
6.22% |
10.19% |
10.73% |
NASDAQ |
26,972.62 |
2.39% |
9.32% |
18.99% |
16.05% |
DAX |
25,104.70 |
0.87% |
4.80% |
-0.71% |
2.51% |
NIKKEI 225 |
66,329.50 |
4.72% |
10.70% |
12.71% |
31.76% |
Shanghai Composite |
4,068.57 |
-1.08% |
-0.95% |
-2.27% |
2.51% |
Fixed Income |
|
|
|
|
|
Canada Aggregate Bond |
244.52 |
0.86% |
1.49% |
-0.72% |
1.49% |
US Aggregate Bond |
2355.21 |
0.73% |
0.32% |
-1.45% |
0.27% |
Europe Aggregate Bond |
248.96 |
0.76% |
1.45% |
-1.03% |
0.88% |
US High Yield Bond |
29.60 |
0.43% |
0.50% |
0.86% |
1.56% |
Commodities |
|
|
|
|
|
Oil |
87.97 |
-8.93% |
-17.69% |
31.26% |
53.20% |
Gold |
4548.23 |
0.86% |
0.01% |
-13.84% |
5.30% |
Copper |
639.05 |
0.76% |
8.71% |
6.43% |
12.47% |
Currencies |
|
|
|
|
|
US Dollar Index |
98.91 |
-0.34% |
-0.06% |
1.33% |
0.59% |
Bitcoin (CAD) |
101,448.51 |
-2.80% |
-2.18% |
12.77% |
-15.44% |
Loonie |
1.3793 |
0.18% |
-0.78% |
-1.11% |
-0.50% |
Euro |
0.8575 |
0.50% |
-0.13% |
-1.27% |
-0.71% |
Yen |
159.28 |
-0.06% |
0.71% |
-2.03% |
-1.61% |
Source: Bloomberg, as of May 29, 2026
Central Bank Interest Rates
Central Bank |
Current Rate |
December 2026 |
Bank of Canada |
2.25% |
2.66% |
U.S. Federal Reserve |
3.75% |
3.87% |
European Central Bank |
2.00% |
2.58% |
Bank of England |
3.75% |
4.21% |
Bank of Japan |
0.75% |
1.21% |
Source: Bloomberg, as of May 29, 2026
*Expected rates are based on bond futures pricing
Macro developments
Canada – Economy Stalls as Trade Weighs on Growth
Canada’s GDP showed no growth in Q1 2026, missing expectations for expansion and extending the prior quarter’s contraction. Modest gains in consumption were offset by a drop in investment and a surge in imports, particularly gold. Weak exports and inventory build-up limited further decline, leaving the economy slightly negative on an annualized basis.
U.S. – No Notable Releases
No notable releases this week.
International – Tokyo Inflation Cools Amid Policy Watch, Japan Labour Market Strengthens Further
Core inflation in Tokyo slowed to 1.3% year-over-year in May 2026, missing expectations and marking its weakest pace since early 2022. Price growth stayed below the Bank of Japan’s target, helped by subsidies and base effects. Still, policymakers remain cautious as rising oil costs could push firms to pass higher prices on to consumers.
Japan’s unemployment rate declined to 2.5% in April 2026, beating expectations and hitting a recent low. Employment surged to a record high while the labour force expanded and inactivity dropped sharply. Overall participation improved and job availability remained stable, signalling a tight and resilient labour market.
Quick look ahead
DATE |
COUNTRY / REGION |
EVENT |
|
SURVEY |
PRIOR |
30-May-26 |
China |
Manufacturing PMI |
May |
50.00 |
50.3 |
30-May-26 |
China |
Non-manufacturing PMI |
May |
49.50 |
49.4 |
31-May-26 |
Japan |
Capital Spending YoY |
1Q |
4.00 |
6.5 |
01-Jun-26 |
Eurozone Aggregate |
Unemployment Rate |
Apr |
6.25 |
6.2 |
01-Jun-26 |
Canada |
S&P Global Canada Manufacturing PMI |
May |
|
53.3 |
01-Jun-26 |
United States |
ISM Manufacturing |
May |
53.20 |
52.7 |
01-Jun-26 |
United States |
ISM Prices Paid |
May |
85.00 |
84.6 |
02-Jun-26 |
Eurozone Aggregate |
CPI Estimate YoY |
May P |
3.30 |
3.0 |
02-Jun-26 |
Eurozone Aggregate |
CPI YoY |
May P |
3.21 |
3.0 |
02-Jun-26 |
Eurozone Aggregate |
CPI MoM |
May P |
0.12 |
1.0 |
02-Jun-26 |
Eurozone Aggregate |
CPI Core YoY |
May P |
2.40 |
2.2 |
03-Jun-26 |
Eurozone Aggregate |
PPI MoM |
Apr |
0.50 |
3.4 |
03-Jun-26 |
Eurozone Aggregate |
PPI YoY |
Apr |
4.65 |
2.1 |
04-Jun-26 |
Eurozone Aggregate |
Retail Sales MoM |
Apr |
-0.30 |
-0.1 |
04-Jun-26 |
Eurozone Aggregate |
Retail Sales YoY |
Apr |
0.30 |
1.2 |
05-Jun-26 |
United States |
Change in Nonfarm Payrolls |
May |
93.00 |
115.0 |
05-Jun-26 |
United States |
Change in Private Payrolls |
May |
100.00 |
123.0 |
05-Jun-26 |
United States |
Change in Manufact. Payrolls |
May |
4.00 |
-2.0 |
05-Jun-26 |
United States |
Average Hourly Earnings MoM |
May |
0.30 |
0.2 |
05-Jun-26 |
United States |
Average Hourly Earnings YoY |
May |
3.40 |
3.6 |
05-Jun-26 |
United States |
Unemployment Rate |
May |
4.30 |
4.3 |
05-Jun-26 |
Canada |
Net Change in Employment |
May |
10.00 |
-17.7 |
05-Jun-26 |
Canada |
Unemployment Rate |
May |
6.90 |
6.9 |
P = Preliminary
The Asset Allocation Team at NEI Investments
Judith Chan, CFA – Vice President, Head of Asset Allocation
Mateo Marks, CFA – Director, Asset Allocation
Adam Ludwick, CFA – Director, Asset Allocation
Anthony Rago, B.A.Sc. – Senior Asset Allocation Analyst