Financial Markets Daily Report10 April 2026
After a clear risk-on tone in markets on Wednesday's session as a ceasefire agreement was reached in the Middle East, yesterday opened with a correction after Iran declared that Israel was violating the deal by attacking Lebanon, triggering concerns around its fragility. This concerns diluted during the session as parties involved showed a more diplomatic stance.
Euro area markets had little time to react to the cooling of the tensions. Government bond yields closed slightly higher, leaving peripheral spreads untouched, while stock indices ticked lower, with the German DAX leading the losses after data releases showed a weaker-than-expected industrial production in February.
In the US, Treasuries closed flat and stock indices ticked higher. The EUR/USD cross rebounded to 1.17, while in commodities markets, energy prices rose slightly, leaving Brent over $96/barrel. Today, inflation numbers for March in the US will be released, where the consensus expects a strong increase (3.4% vs 2.4% in February) due to the war against Iran.