Financial Markets Daily Report
21 septiembre 2026
Markets closed the week on a mixed note on Friday. Market odds for further interest rate hikes rose, with investors discounting three hikes for the Fed and three to four for the ECB over the next 12 months. The ECB's Lagarde and Vujcic pushed back somewhat against these market expectations, explaining that the bank will look beyond higher energy prices alone when deciding its monetary policy.
Sovereign bond yields rose on both sides of the Atlantic, with a slight flattening of the curves. Eurozone peripheral spreads widened, particularly France's, as concerns over the public deficit grow, while in the US, the 10-year Treasury yield reached 5%. In this context, the dollar appreciated against the yen despite the BoJ's large rate hike by its standards (25bps) on Friday.
Equities were mixed, with European indices falling while US indices fared better, supported by chipmakers. In commodities, Brent crude oil prices fell slightly, while TTF natural gas prices rose.