Financial Markets Daily Report15 September 2025
Investors ended the week with a mixed session. Euro area sovereign yields continued to rise on the back of a hawkish reading of the ECB's tone, while US yields had only modest gains following sessions with sharp declines ahead of the Fed's meeting. The euro-dollar cross remained at 1.17 and stocks were mostly flat on both sides of the Atlantic.
On the data front, US consumer sentiment fell in September as worries about employment mount. S&P upgraded Spain's credit rating from A to A+ citing an improvement in the country's external balance sheets resulting from private sector deleveraging. Meanwhile, Fitch downgraded France's rating from AA- to A+ over concerns of debt stabilization.
This week the focus will be on the Fed's monetary policy decision. Markets are pricing in a 25bp interest rate cut, following weak jobs data and a limited rise of inflation in the past months. Investors will be attentive to any indications from chair Powell about the path of monetary policy in the coming months.