Financial Markets Daily Report19 setembre 2025
Global stocks advanced, with the S&P 500 and Nasdaq hitting new record highs, while sovereign bond yields rose on both sides of the Atlantic.
Global risk-on sentiment followed the Fed's decision to lower interest rates and signal a path of further easing ahead (see our take here).
The Bank of England held its policy rate steady at 4.00% and announced a slowdown in its balance-sheet reduction, from £100 billion a year to £70 billion, while shifting sales away from longer-dated debt to minimize the impact on the gilt market. Ten-year gilt yields edged higher, and the pound held steady against the euro (EUR/GBP around 0.87).
Earlier this morning, the Bank of Japan also kept rates unchanged at 0.5% and announced plans to begin selling its ETF and REIT holdings at a pace of around ¥620 billion by market value per year. Asian shares fell during Friday’s open and the yen rose to 147 (from 148) against the dollar.