Financial Markets Daily Report
10 septiembre 2026
A renewed surge in energy prices, which sent Brent crude oil above $100 and TTF natural gas close to €80, set a risk-off tone across markets. Inflation expectations rose, as did expectations of central bank tightening, with markets pricing around 85 bps of ECB tightening over the next 12 months (starting with 25 bps today), and almost 70 bps for the Fed.
Sovereign bond yields rose across the board, more markedly in the Eurozone, with some peripheral spreads (France and Italy) widening. US Treasury yields also increased, with the 10Y yield reaching its highest level since 2023 after the Treasury's $6bn buyback announcement of long-dated debt disappointed investors expecting a larger operation.
In FX, the euro advanced slightly, supported by the hawkish ECB repricing, while the yen weakened despite Bessent's warning of his determination to support the currency. Equity indices fell on both sides of the Atlantic, with defensive and rate-sensitive sectors underperforming. US indices fared slightly better, supported by chipmakers over lingering AI optimism.