Economic activity in China is slowing. Silver has fallen by more than 8%

On Friday, US stock indices fell sharply amid growing investor concerns about the consequences of the prolonged conflict with Iran. Market participants fear that further increases in energy prices will intensify inflationary pressure and force the Federal Reserve to keep interest rates high for longer.
By the end of the day, the Dow Jones (US30) fell by 1.07% (weekly result -0.05%). The S&P 500 (US500) declined by 1.24% (weekly result +0.31%). The Technology Index NASDAQ (US100) closed lower by 1.54% (weekly result -0.21%). Pressure intensified due to profit‑taking in the technology sector after a prolonged rally driven by artificial intelligence.

The largest declines were seen among semiconductor and memory‑chip manufacturers: Intel shares fell by 5%, AMD dropped by 3%, and Micron Technology lost 4%. Nvidia declined about 2%. The exception was Microsoft, whose shares rose 4% after Bill Ackman announced that Pershing Square had opened a position in the company. Boeing shares continued to fall, losing another 3%, as investors reacted cautiously to Donald Trump’s statement that China intends to purchase 200 Boeing aircraft, viewing the figure as only slightly above previously expected delivery volumes.

In mid‑May, the Mexican peso weakened to around 17.3 per US dollar amid a stronger US currency and rising US Treasury yields. Pressure on the peso also came from weak domestic macroeconomic data. Mexico’s economy contracted by 0.8% in the first quarter, worse than market expectations, increasing concerns about slowing economic activity. Although the Bank of Mexico previously cut the key rate to 6.5%, the regulator indicated that the easing cycle is likely nearing its end. The central bank adopted a more cautious stance due to inflation risks driven by high oil and fuel prices, which limit room for further rate cuts.
The Canadian dollar weakened slightly to around 1.37 per US dollar, extending its decline after reaching a seven‑week high at the end of April. Pressure on the Canadian currency increased amid US dollar strength following higher‑than‑expected US inflation data. Additional support for the US dollar comes from geopolitical tensions in the Middle East. At the same time, rising oil prices partially limit the Canadian dollar’s decline, as Canada’s economy and currency traditionally benefit from a stronger commodity sector and higher export revenues.

Bitcoin (BTC/USD) fell to around 76,000 dollars, reaching its lowest level in more than two weeks amid deteriorating global risk appetite due to the escalation of the US-Iran conflict. Another negative factor was a large capital outflow from US spot bitcoin ETFs: investors withdrew more than 1 billion dollars over the past week, marking the first weekly outflow of this magnitude since late January.

By the end of the day, Germany’s DAX (DE40) fell by 2.07% (weekly result -1.57%), France’s CAC 40 (FR40) closed down by 1.60% (weekly result -1.45%), Spain’s IBEX 35 (ES35) declined by 1.05% (weekly result -1.58%), and the UK’s FTSE 100 (UK100) ended the session down by 1.71% (weekly result -0.37%).
On Friday, WTI oil prices rose more than 4.5%, climbing to around 106 dollars per barrel, with weekly gains reaching roughly 11% amid the continued effective closure of the Strait of Hormuz. The market remains under severe strain due to the threat of disruptions to global oil supplies, as diplomatic efforts to resolve the conflict have yielded no results. Limited tanker movement through the strait is increasing concerns about supply shortages and supporting persistently high energy prices.

Silver (XAG/USD) fell more than 8%, dropping to 76 dollars per ounce and extending its decline for the second consecutive session amid rising concerns about accelerating US inflation and potential further monetary tightening. Pressure on the market came from fresh data showing that in April, producer prices as well as import and export prices in the US rose at the fastest pace since 2022, while consumer inflation reached its highest level since 2023. Investors link the increase in price pressure to the prolonged Middle East conflict and ongoing restrictions on shipping through the Strait of Hormuz, which support high energy prices.

In Asia, Japan’s Nikkei 225 (JP225) fell by 1.99% (weekly result -2.84%), China’s FTSE China A50 closed down by 1.05% (weekly result -1.39%), Hong Kong’s Hang Seng (HK50) declined by 1.62% (weekly result -1.32%), and Australia’s ASX 200 (AU200) fell by 0.11% (weekly result -0.68%).
On Monday, Chinese stock indices closed with moderate gains. The market was supported by the technology sector, which offset pressure from weak macroeconomic data. The top performers were companies linked to artificial intelligence and semiconductors. At the same time, China’s economic data increased concerns about slowing domestic activity. Retail sales growth in April slowed sharply to 0.2% year‑over‑year, the weakest result since December 2022. Industrial production also slowed to 4.1%, the lowest level since July 2023, while the unemployment rate improved slightly, falling to 5.2% from March’s 5.4%, the lowest in three months.

Hong Kong’s economy grew by 5.9% year‑over‑year in Q1 2026, confirming preliminary estimates and accelerating from a revised 4% increase in the previous quarter. This was the strongest pace of expansion since Q2 2021. The main drivers were resilient domestic demand, rising consumer spending, and increased investment activity. On a seasonally adjusted quarterly basis, GDP rose 2.9%, the fastest growth in nearly five years. Against this backdrop, authorities maintained their 2026 growth prognosis in the range of 2.5-3.5%.