Financial Markets Daily Report
20 marzo 2026
Central banks took center stage, with a broadly hawkish tilt across major economies. The ECB left the depo rate unchanged at 2.00%, as expected, but highlighted stagflationary risks stemming from the Middle East conflict. Euro area sovereign yields edged higher, as markets now fully price in two rate hikes in 2026, while the euro recovered and equities declined sharply.
Other central banks delivered a similar message, warning about inflationary pressures and weaker growth linked to the conflict. The BoJ kept rates unchanged at 0.75%, with markets now pricing in two rate hikes this year, supporting the yen while Japanese equities ended with losses. The BoE also held rates at 3.75%, with investors pricing in two hikes in 2026.
In commodities, energy prices moved higher again as the conflict intensified. Brent crude rose above $110/bbl, briefly approaching $120, while European natural gas (TTF) spiked above €70/MWh before easing toward €60. In contrast, gold declined, as markets priced in tighter monetary policy and higher interest rates.