Financial Markets Daily Report01 abril 2026
Improving prospects of a de-escalation in the Middle East supported risk sentiment, with reports suggesting both the US and Iran may be open to ending the conflict. Sovereign yields fell for a second straight session, as inflation concerns eased, while equities moved higher, led by a strong rally in the US (the S&P 500 saw its largest daily gain since May).
Oil prices remained volatile, with Brent rising to USD 118/bbl before falling back to around USD 103 as of this morning, as de-escalation hopes gained ground. TTF gas declined to €50/MWh, while gold climbed above USD 4,500/ounce. In currency markets, the dollar eased slightly, leaving the EURUSD cross above slightly above 1.15
Euro area inflation increased to 2.5% YoY in March, driven by higher energy prices (see our take here). Markets continued to price three ECB rate hikes from June onwards. Across the Atlantic, markets expect the Federal Reserve to remain on hold for the remainder of 2026, but odds of a rate cut towards the end of 2027 rose above 50%.