Financial Markets Daily Report06 February 2026
The ECB kept rates on hold at 2%, as expected, with Christine Lagarde noting that both rates and inflation remain in a “good place”. She also played down concerns around euro strength and risks linked to Chinese trade, signalling limited scope for policy easing below the 2% level.The BoE kept rates unchanged at 3.75%, albeit with a surprisingly dovish tone.
US equities extended their losses, following weak weekly employment data and renewed doubts surrounding AI-related valuations, with volatility rising to its highest levels since November. In the euro area, declines in the financial sector weighed on the main equity indices.
In fixed income, Treasury yields moved lower across the curve, while European yield curves saw only marginal changes. Oil prices fell by around 3% after Iran confirmed it would negotiate with the US today, easing near-term concerns over military escalation and supply disruptions. Gold also moved lower, trading around $4,800/ounce.