Financial Markets Daily Report
16 June 2026
Risk sentiment improved on Monday, after reports during the last hour of the weekend announced a deal reached by the US and Iran to reopen the Strait of Hormuz, although its details are yet to be defined. TTF natural gas fell by more than 9%, closing the session at EUR 42.5/MWh, while Brent crude prices dropped nearly 5%, settling just above $83/bbl. Market implied volatility sharply fell sharply for the second consecutive session.
Government bond yields fell on both sides of the Atlantic, especially in the euro area, where ECB's market expectations shifted downwards, expecting now only one hike that would leave the depo at 2.50%. Peripheral spreads closed the session barely untouched. The US dollar weakened modestly as global uncertainty decreased.
In equities markets, euro area indices opened the session with a sharp increase that was immediately corrected, while still closed the session with gains. US indices advanced firmly, driven by tech stocks (Nasdaq +3%), as well as Asian ones.