The iron fist cracked. After serving 20 years in politics, Turkish President Erdogan didn't win the election outright and will face his main rival, Kilicdaroglu, in a second round of voting on May 28th. Erdogan's alliance also retained control of Parliament. However, there were allegations of vote tampering and suppression of free speech, which international observers criticised. The election is important for both candidates, with Erdogan's victory cementing his legacy and Kilicdaroglu's defeat meaning the end of the opposition coalition. A third-party candidate, Sinan Ogan, could play a crucial role in the final result, with both sides trying to win over his supporters. Türkiye has the 19th largest economy in the world, and the election will change how economic policy is managed as the country has had one of the highest inflation rates in the world recently.


The three major US stock indices closed higher on Monday, accompanied by a rise in benchmark Treasury yields. Despite the winding down of the Q1 earnings season, which left few market-moving factors, market participants showed little conviction. However, surging semiconductor shares contributed to a boost in the Nasdaq. European and emerging market stocks also finished higher, while US Treasury yields increased on slowing inflation.


Gold prices eased as investors analysed comments from US central bank officials on interest rates staying high and awaited developments in the debt ceiling debate. The US Treasury Department expects to pay bills only through June 1 without a debt limit increase, increasing pressure on Republicans and the White House to reach a deal in the coming days.


Oil prices rose in Asian trade on Tuesday as the US government confirmed plans to purchase up to 3 million barrels of oil to finally refill the Strategic Petroleum Reserve (SPR). The programme offered relief to oil prices that were battered by fears of slowing economic growth over the past four weeks, but the factors that spurred a four-week losing spree in oil prices still remained in play.


The US dollar is under pressure due to the risk of a US default, as Democrats and Republicans are at odds over raising the debt ceiling. The Australian dollar dropped after China's industrial production missed forecasts. The euro, yen, and Swiss franc remained steady, while the Australian dollar and offshore Chinese yuan weakened.