Financial Markets Daily Report
05 octubre 2026
A soft US September jobs report, with payroll growth below expectations (29k vs 90k expected) but not weak enough to trigger growth concerns, alongside mixed Factory and Capital Goods orders data, prompted a modest upward reassessment of Fed rate expectations. Markets now price a hike in December and at least two more thereafter. Treasury yields rose.
In the Eurozone, September inflation came in slightly above expectations on higher energy prices, but investors still priced in three more ECB hikes. French spreads ended flat after a choppy session, as domestic buyers returned, while Eurozone curves steepened. Italian and Greek spreads narrowed as the flight to quality into German debt eased.
The euro appreciated slightly against the dollar, although both currencies weakened in nominal effective terms, with JPY, GBP and CHF strengthening. Equities advanced on both sides of the Atlantic, with the Nasdaq outperforming thanks to semiconductors, and volatility declined. In commodities, oil prices stabilised while TTF natural gas prices rose.