- Discover the weekly market forecast, and explore the topics and events that shaped financial flows throughout the week.
- Markets are undergoing a major repricing following the confirmation of Kevin Warsh as the new Fed Chairman, and this pricing theme should continue throughout next week.
- Some inflation releases, including the CPI in Canada and the UK, will continue to provide clarity on the market situation.
- Get ready for next week’s events by exploring upcoming events in global markets.
A Week in Review: Earnings break records and push markets higher
Stock markets reached dizzying new highs just yesterday, benefiting greatly from relentless AI trends and a massive wave of record corporate profits.
The S&P 500 forcefully breached the massive 7,500 level, while the Dow Jones Industrial Average temporarily regained the historic 50,000 level as global risk appetite reached its peak.
Adding to this initial bullish momentum, the upcoming summit between President Trump and Chinese President Xi Jinping has set a very constructive geopolitical tone.
The two leaders established identical views Regarding the ongoing conflict in the Middle East and the overall world order, the two superpowers need to cooperate.
Investors are now looking forward to the next meeting between the two leaders, with an official invitation extended to President Xi to visit Trump in the United States in mid-September.
However, while these diplomatic developments have generated better hopes for a sustainable peace process, financial markets are already quickly turning the page on the issue.
Despite the mid-week euphoria, a more dominant macro theme is now firmly gripping the markets and causing widespread bloodshed ahead of the weekend.
Following the Senate’s formal confirmation of Kevin Warsh as the next Chairman of the Federal Reserve, risk assets are subject to brutal and significant repricing.
Harsh bearish flows wiped out recent gains in stocks, metals and cryptocurrencies as the US dollar rose at the direct expense of almost all other asset classes.
Markets are laser-focused on the dire long-term consequences of a Warsh-led Fed. Institutional capital is actively preparing for a massive systematic emptying of the central bank’s balance sheet, which remains one of the new president’s cherished ambitions.
You can see this in the shocking move in bond markets, which threatens to have ripple effects in the broader market system.
The US bond market has been broad-based since the beginning of 2026. Source: TradingView, May 15, 2026.
This aggressive path has the terrifying potential to severely impact the foundational liquidity system that has supported global markets since the post-Great Financial Crisis era.
As this historical recalibration process drains speculative surplus from the financial system, this structural shift in liquidity is the exact theme that continues to dramatically dictate price action in the coming week and months ahead.
Weekly performance across asset classes
Weekly asset performance. Source: TradingView, May 15, 2026.
What could have been a dream-like week for major assets quickly turned into a dramatic comeback, one that took more than it gave.
When markets fear draining liquidity, this quickly brings back massive fears of a harsher system before the global financial crisis, where demand is pushed and pulled by cyclical factors rather than the consistent support seen over the past 17 years.
Stock, cryptocurrency and metal markets, which started the week on a rocket ship, quickly headed back in the other direction, with most assets now lower for the week.
The only exceptions remain WTI and the US dollar.
Next week: G7 meeting, UK and Canada CPI, and high-level PMI reports
One of the key geopolitical events is the G7 meeting, which aims to provide greater cooperation between the members: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
In terms of the broader markets, players will want to focus on Kevin Warsh’s trading, which is bullish on the US dollar and bearish on everything else.
Asia Pacific Markets: Australian Employment and Broad Economic Indicators
Next week’s Asia-Pacific calendar brings extreme volatility in major economies.
China starts with forecasts for high-impact industrial production at 5.9% and retail sales at 2.0%, before the People’s Bank of China keeps interest rates at 3.0%.
Japan faces critical first quarter GDP dataWith an annual reading of 1.7% expected before Thursday National consumer price index.
Australia navigates Reserve Bank of Australia minutes and pivotal employment report on Wednesday, Expect a steady unemployment rate of 4.3%.
Finally, New Zealand traders brace for first-quarter retail sales data on Thursday.
Europe and UK Markets: Employment and inflation in the UK, along with waves of economic data
Get ready for a lot of events on the Old Continent.
In the United Kingdomtraders are preparing for Tuesday’s unemployment rate is 4.9%. and Important CPI report on WednesdayWith expectations that the inflation rate will rise to 3.3%. On Thursday, the UK services PMI is expected to reach 52.7.
In Europe, focus turns to PMIs, with contraction expected in Germany at 48.4 and the wider Eurozone at 48.8.
Friday concludes the week with expectations for German GDP growth in the first quarter by 0.3%.
And don’t forget the large number of speakers from the European Central Bank and the Bank of England throughout the week.
North American Markets: Canadian CPI, FOMC minutes and US PMIs
Next week, North American markets face pivotal data as traders search for a new trend. in CanadaTuesday’s crucial CPI report takes center stage, with previous year-on-year core inflation remaining at level 2.5%followed by Friday’s retail sales forecast at 0.6%.
Meanwhile, we Markets will be very focused on the crucial Wednesday Minutes of the Federal Open Market Committee meeting For monetary policy guides.
The US narrative then shifts to economic health on Thursday, which the preliminary manufacturing PMI highlighted earlier 54.5Previously, the Services PMI 51.0.
Keep a close eye on US markets and bonds, especially after the weekend turmoil.
High-level economic events next week
Economic calendar for next week. Source: TradingEconomics.
Safe trades and monitoring of developments between the United States and Iran, along with workshop trading.
