Financial Markets Daily Report10 November 2026
Risk sentiment improved at the start of the week after Trump signalled that further military action against Iran was unlikely while diplomatic efforts continued. The remarks triggered a sharp decline in oil prices, with Brent falling almost 6%, helping to ease inflation concerns and supporting a broad rebound in global equities following last week's sell-off.
In sovereign bond markets, peripheral euro area bonds outperformed, leading to a modest narrowing of sovereign spreads. In contrast, US Treasury yields moved higher, with the curve flattening as short-dated yields rose more than long-dated maturities ahead of today’s CPI release.
In FX markets, the dollar weakened against major currencies, including the euro and the yen. Stocks ended the session higher on both sides of the Atlantic. In the US, gains were led by technology shares despite Nvidia underperforming amid company-specific news.