Financial Markets Daily Report
29 octubre 2026
The Fed held rates at 3.75%–4.00%, in a 10-2 vote, with Governors Cook and Hammack dissenting in favour of a hike. Markets now fully price in two further hikes in the first half of 2027. Treasuries sold off on the long end, as the 10-year yield rose to 5.02%, while the 2-year edged to 4.70%. In Europe, sovereign bonds were broadly stable and spreads contracted. Elsewhere, the BoC raised rates 25bp to 2.50%, while the RBNZ unexpectedly held rates, leading to sharp fall in the NZ dollar.
US equities advanced modestly after the Fed decision, while Asian markets remained buyoed by AI optimism and European indices remained broadly flat. The US dollar softened against other currencies, as the euro slightly appreciated.
Energy markets remained driven by Middle East supply risks, as continued fighting in Yemen and attacks on Saudi energy infrastructure raise risks of further regional escalation. Brent rose 1.3%, adove $115/bbl, and the main European gas references closed nearly 5% higher, surpassing the 100€/MWh threshold for the first time since the conflict erupted.