Financial Markets Daily Report27 March 2026
Yesterday’s developments reignited inflation and growth concerns, driving a pick-up in market volatility, as expectations of a near-term de-escalation in the Middle East faded amid doubts over the US willingness to meet Iran’s demands. Brent crude surged to $108/barrel.
Expectations of future rate hikes increased on both sides of the Atlantic, boosted by comments from ECB's Nagel considering a rate hike in April as an option and from ECB's Lagarde observing that markets reaction to the conflict might be too optimistic. Government bond yields rose sharply in both the US an the euro area.
Equity indices fell globally, with the German DAX leading the losses in the euro area after the GsK index for consumer confidence showed the worst levels in the last two years. In currency markets, the dollar continued to appreciate against peers due to its safe-haven status. Gold prices declined, to close the session below $4400/ounce.