Financial Markets Daily Report
07 mayo 2026
Markets traded higher on Wednesday as optimism that the US and Iran were nearing a deal to ease hostilities pushed crude oil and natural gas prices sharply lower.
Sovereign bond yields declined on both sides of the Atlantic, led by the euro area front end, as inflation concerns eased and investors' expectations shifted towards a slightly less hawkish ECB in the upcoming quarters. Eurozone peripheral spreads narrowed. US Treasury yields also fell, while the ADP report for April suggested that the US labour market remains resilient.
Equities advanced globally, with some European indices among the best performers and Asian markets exposed to AI investment also posting solid gains, notably South Korea’s Kospi.
In FX markets, the dollar weakened against major peers, particularly the euro and the yen, on the risk-on backdrop. Press reports suggested that the yen’s appreciation may be due to a new official intervention to support the currency.