Financial Markets Daily Report
22 octubre 2025
Without any significant drivers, markets traded without a clear direction during yesterday’s session, pausing the previous’ days strong risk-on sentiment. Treasury yields edged lower in the US ahead of the Fed’s meeting next week (expected to lower interest rates by 25bp). European government yields fell across the region, keeping peripheral risk premia constant.
In stock markets the session was mixed, with gains leaded by the French index CAC 40, as investors continued to digest the prospect of a more stable political outlook now that the discussions for a budget for 2026 have started. Today the focus will be on the release of UK inflation figures for September.
In currency markets, the dollar continued its appreciation rally against its main peers, especially the Japanese yen, which weakened following the election of Sanae Takaichi as prime minister. In commodity markets, Gold prices dropped more than 5pp, settling now slightly above $4100/ounce, as the rally took a pause.