Financial Markets Daily Report
22 octubre 2026
Sovereign bond markets remained under pressure as investors grappled with persistent inflation risks, higher energy prices and uncertainty surrounding the AI-driven growth story. US Treasury yields stayed elevated while in Europe peripheral spreads widened further amid fiscal concerns, with French yields hitting the 5% threshold for the first time since 2002, while UK gilt yields rose after stronger-than-expected inflation data.
Crude oil remained volatile during yesterday's session, as markets weighed conflicting signals from a flare-up in Middle East tensions and the observed resilience in physical supply data, reinforcing expectations of "higher-for-longer" energy prices, amid intermitent supply. European natural gas prices shot up, after reported Hormuz attacks and low storage levels.
US and European equities ended higher, led by technology stocks, as strong earnings reports lifted market sentiment. In FX markets, the dollar was little changed ahead of next week's Fed meeting, with the euro remaing near $1.12.