Financial Markets Daily Report
18 February 2026
Geopolitics were in investors’ focus yesterday, after Iran’s Foreign Minister stated that Iran and the US had reached an understanding on the main “guiding principles” of a potential nuclear agreement. Commodity prices declined on the news, with Brent crude edging lower toward $67.5/barrel, European natural gas falling below €30/MWh, and gold also retreating.
It was a muted session in sovereign debt markets. Euro area yields declined, while US Treasury yields edged slightly higher, in the absence of major macro catalysts. In Germany, the ZEW economic sentiment index fell to 58.3 in February from 59.6, as expectations deteriorated, although the assessment of the current economic situation improved to a seven-month high.
Global equity markets closed mixed. Euro area indices advanced broadly, while major US indices were mostly flat, recovering from early losses as sentiment remained cautious amid ongoing concerns over AI-driven disruption. Today's main macro release will be the FOMC minutes from the January meeting.