Key Takeaways
- IEA reports a record global oil inventory withdrawal of 246 million barrels during March and April, driven by the "Iran War Shock" and the ongoing closure of the Strait of Hormuz.
- President Trump arrives in Beijing for a high-stakes summit with Xi Jinping, accompanied by a delegation of CEOs including Nvidia (NVDA)'s Jensen Huang and Tesla (TSLA)'s Elon Musk.
- Nissan (NSANY) cancels its FY 2026 dividend after reporting a massive 282.87 billion yen Q4 net loss, though operating income managed to beat analyst estimates.
- Sumitomo Mitsui Financial Group (SMFG) announces a 180 billion yen share buyback and a 2-for-1 stock split despite missing Q4 net income expectations.
- BYD (BYDDY) is in active negotiations with Stellantis (STLA) to acquire underutilized car manufacturing plants in the European Union to bypass rising import tariffs.
Global Energy Markets in Turmoil
The International Energy Agency (IEA) released a staggering monthly report on Wednesday, revealing that the global oil supply has fallen by 12.8 million barrels per day (bpd) since February due to the closure of the Strait of Hormuz. The agency noted that global inventories were depleted by 246 million barrels across March and April, a record pace that highlights the severity of the "Iran War Shock."
The IEA now projects that total world oil supply will remain 1.78 million bpd lower than demand throughout 2026, a sharp reversal from previous forecasts of a surplus. While the agency assumes a gradual resumption of flows through the Strait of Hormuz starting in June, it warned that global refinery runs will fall by 1.6 million bpd this year due to lower crude availability and infrastructure damage.
Trump-Xi Summit and the Tech Delegation
Geopolitical tensions took center stage as President Donald Trump arrived in China for a three-day summit with President Xi Jinping. In a last-minute move, Nvidia (NVDA) CEO Jensen Huang joined the official delegation during a refueling stop in Alaska, sending Nvidia shares up 1.9%.
Trump stated his "very first request" to President Xi would be to "open up" China to American businesses, specifically targeting regulatory hurdles for tech giants. The delegation also includes Apple (AAPL)'s Tim Cook and BlackRock (BLK)'s Larry Fink, signaling a major push to stabilize trade relations and address artificial intelligence controls amid the regional conflict.
Corporate Earnings: Nissan and SMFG Diverge
Nissan Motor Co. (NSANY) delivered a mixed Q4 2026 earnings report, posting a net loss of 282.87 billion yen, which was slightly narrower than the 304.65 billion yen loss analysts had feared. Despite an operating income of 68.11 billion yen—well above the estimated loss—the automaker announced it will not pay a dividend for the 2026 fiscal year, citing the need to preserve cash amid "ongoing earnings pressure."
In contrast, Sumitomo Mitsui Financial Group (SMFG) moved to reward shareholders despite a Q4 earnings miss. The bank reported net income of 188.21 billion yen, falling short of the 226.91 billion yen estimate, but countered the news by announcing a share buyback of up to 180 billion yen. Additionally, the board approved a 2-for-1 stock split effective October 1, reflecting long-term confidence in its capital position.
Macroeconomic Pressures and Political Shifts
Inflationary concerns continue to mount as U.S. inflation remains on the rise, complicating the Federal Reserve's path forward. In Europe, ECB Governing Council member Dolenc remarked that while energy prices are currently having a "limited effect" on the broader economy, the French economy remains under significant pressure.
In the United Kingdom, political observers noted a brief and potentially tense meeting at 10 Downing Street between Health Secretary Wes Streeting and Prime Minister Keir Starmer. Streeting reportedly exited the building just 18 minutes after entering, sparking speculation regarding cabinet unity as the government navigates the economic fallout of the Middle East conflict.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.