Financial Markets Daily Report
04 September 2025
Dovish remarks from Fed Governor Chris Waller and a JOLTS job report that showed US job openings fell in July to the lowest in 10 months, reniforced market expectations of a Fed rate cut in its September meeting. US Treasruy yields fell and stocks advanced, while the dollar edged lower.
Sentiment also recovered in the euro area after the global bond sell-off in the previous session. Sovereign bond yields fell and peripheral risk premia narrowed, except for France, whose risk premia remained flat. On the macro data front, final PMI figures confirmed euro area activity remained sluggish during August, with the composite index at 51.0.
In commodities markets, oil prices fell by 2% ahead of a weekend meeting of OPEC+ producers that is expected to consider another increase in production in an environment described by the IEA as one of excess supply. Brent crude traded close to $67.5/barrel.