Financial Markets Daily Report
02 July 2026
During yestrerday's session, energy prices continued to fall on increased optimism about reaching a long-term peace agreement in the Middle East, after President Trump was positive about the talks held in Qatar. Brent crude and TTF natural gas prices fell below USD 72/barrel and EUR 43/MWh, respectively.
Euro area sovereign short-term yields fell, as CPI numbers unveiled a cooler-than-expected inflation in June (2.8% YoY vs 3% expected), while long-term ones rose, slightly widening peripheral spreads. US Treasuries closed flat on a choppy session, with the manufacturing ISM coming in line with expectations.
In currency markets, the inflation surprise weighed on the euro, which depreciated against major currencies as expectations for another rate cut from the ECB this year decreased. Equity markets fell on both sides of the Atlantic, correcting the movements of the past session, driven by losses in the technology sector. Asian markets, however, managed to post gains.