Financial Markets Daily Report
30 septiembre 2025
Investors traded cautiously in the first session of the week as they pondered over the risk of a U.S. government shutdown (federal funding expires on September 30 unless Congressional leaders agree on a spending bill). The VIX rose, stocks were mixed, sovereign yields declined across the U.S. and the euro area, the USD weakened and gold rose.
In oil markets, Brent oil prices dropped by the most in three months and tempered last week's rally. The movement seemed to be supported by media leaks signaling that OPEC+ will hike production again in November (OPEC+ members are scheduled to meet on October 5).
In the central banking sphere, ECB's Lane described the inflation outlook as "reasonably benign". St. Louis Fed's Alberto Musalem said he is "open minded to [...] reductions in interest rates", while pointing the "need to tread cautiously". NY Fed's John Williams signaled a "re-balancing of the risks", with inflation risks coming down and those for employment moving up.