Financial Markets Daily Report21 April 2026
Yesterday's session reverted the growing risk-on sentiment from last week, after developments during the weekend unveiled the fragility of the truce between US and Iran as the reopening of the Strait of Hormuz lasted less than 24 hours and the two parties have substantial differences in some of the points needed for an extension of the ceasefire.
Overall, markets corrected the movements they had on Friday, but did not fully compensate their magnitude. Brent prices climbed back to USD 95/barrel and TTF settled above EUR 40/MWh, while volatility increased. Equity markets fell on both sides of the Atlantic, with modest losses in the US that stopped the record-breaking streak from last week.
Government yields ticked up in the euro area, with a slight widening of peripheral spreads, while US Treasuries barely moved in expectation of today's Kevin Warsh's confirmation hearing at the Senate. Currency markets were little moved, with the EUR/USD cross further approaching to 1.18.