Financial Markets Daily Report09 July 2026
Yesterday's session was marked by news that the US and Iran were resuming the strikes as the interim deal between the two countries to end the war was over. Energy prices peaked near European closing, with Brent crude reaching USD 80/barrel to further ease and close the session at USD 78. TTF closed the session up 5% at EUR 49/MWh.
Increasing tensions in the Middle East revived inflation concerns, driving expectations regarding central banks to a more hawkish stance. Euro area sovereign yields rose more than 10bp at all maturities, marginally widening peripheral spreads, while US Treasury yields rose more modestly, as expectations of a hawkish Fed were already priced in.
In equity markets, euro area indices posted substantial losses, while US tech stocks managed to mute generalized declines, with the Nasdaq even closing the session on positive territory. In currency markets, the US dollar appreciated as uncertainty increased.