Financial Markets Daily Report
24 setembre 2026
Wednesday saw a risk-off session in financial markets, as stronger-than-expected September PMIs, hawkish ECB and Fed comments, and higher Brent prices prompted an upward repricing of inflation expectations and policy rates, with markets pricing more than four ECB hikes and almost four Fed hikes over the next 12 months.
This led to a sharp increase in sovereign bond yields, with German yields rising by 10-12bp across the belly of the curve, while eurozone peripheral spreads widened (particularly the Italian and French ones). In the US, the Treasury curve shifted higher, with the move amplified by weak demand at a $70bn 5-year auction.
This supported the dollar, which appreciated against its peers and traded below 1.14 against the euro. Equity indices declined on both sides of the Atlantic, weighed down by higher yields, with the Nasdaq among the worst performers given technology companies' sensitivity to higher interest rates.