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Yesterday's was a volatile session in the market, driven again by geopolitical developments the Middle East. It started with a risk-off tone, as Iran reportedly suspended its contact with the US in response to the Israelian attacks to Lebanon; however, later news reporting that Hezbollah was ready to agree to a ceasefire switched the market sentiment in late session.

Risk sentiment improved on Monday, after reports during the last hour of the weekend announced a deal reached by the US and Iran to reopen the Strait of Hormuz, although its details are yet to be defined. TTF natural gas fell by more than 9%, closing the session at EUR 42.5/MWh, while Brent crude prices dropped nearly 5%, settling just above $83/bbl. Market implied volatility sharply fell sharply for the second consecutive session.

On yesterday's session, markets kept a positive tone, as the US-Iran peace talks progressed and the US Treasury allowed Iranian oil sales, easing supply risks. Oil prices fell more than 3%, the dollar rose slightly, while the pound edged up higher on the announcement of PM's Keir Starmer resignation and the prospect of an orderly leadership transition.

With no major developments in the peace talks from the Middle East, Friday's session was driven by an increase in risk sentiment, with investors rotating from fixed income to the stock market in the euro area and falling volatility. In the US, markets were closed due to a bank holiday.

Risk-off sentiment took over yesterday's session. Oil and gas surged amid escalating tensions in the Middle East (eg., the Houthis attacked two Saudi Arabian tankers in the Red Sea), sending global stocks lower and triggering higher sovereign yields across the board. In FX markets, the U.S. dollar index strengthened towards a one-month high.

In the first session of the week, investors operated with caution as they continued to digest the Fed's dovish message and the implications for the economic outlook of an inverted yield curve.

Financial markets started the week in a quiet mood as investors awaited the beginning of the earnings' season, the ECB meeting and more clues on the trade negotiations between the U.S. and China.

In yesterday session, global financial markets were driven by the dovish communication from the ECB and the developments in the negotiations between the U.S. and Mexico.

The growth in Spain's inbound tourism has been contained throughout 2019 due to the less favourable global economic environment and the strong recovery by its main rivals in the Mediterranean. However, the tourism sector's profitability looks highly resilient, supported by dynamic domestic tourism expenditure and the industry's drive towards higher quality.