Financial Markets Daily Report
23 March 2026
Friday's session was again driven by inflationary concerns amid escalating tensions in the Middle East. Brent prices settled over $110/barrel and market volatility rose as President Trump pledged to send more troops to Iran and to intervene in the Kharg island to reopen the Strair of Hormuz.
Government bond yields continued to rise on both sides of the Atlantic, with the German Bund reaching its highest yield since 2011 as markets now fully price three hikes of the ECB depo rate. Peripheral spreads widened, with Italian bonds underperforming their peers. In equity markets, stock indices experienced a global sell-off.
In currency markets, the dollar strengthened against peers due to its safe haven status and markets increasing the probability of a Fed rate hike by the end of the year. Gold prices eased on the back of a stronger dollar and are trading close to $4200/ounce. On the macro front, this Tuesday, March PMI data will be published for several countries.