Financial Markets Daily Report08 setembre 2026
The week started with US markets closed for Labour Day. Elsewhere, energy prices edged higher, lifting eurozone market-based inflation expectations as well as ECB rate expectations. A hike at Thursday's meeting is priced by investors as almost certain, as well as two additional increases discounted over the next twelve months.
Eurozone sovereign yields rose across the curve, while peripheral spreads were broadly unchanged, as political risk increased in Germany following AfD's victory in the Saxony-Anhalt regional elections. In FX markets, the dollar weakened against its major peers, particularly the yen, as investors continued to price in a hawkish BoJ and an expected rate hike next week.
European equities were mixed, with energy stocks outperforming while rate-sensitive sectors lagged. Asian equities gained as renewed optimism around new AI models boosted chipmakers. On the data front, attention this week will focus on Friday's US August CPI release.