Financial Markets Daily Report01 octubre 2026
Wednesday's session carried a cautious tone. U.S. stocks were mixed and European equities fell broadly, while crude oil edged higher and TTF natural gas surged sharply, reversing recent declines. In FX markets, the dollar strengthened moderately, weighing on the euro.
Fixed income markets diverged across the Atlantic. The U.S. sovereign yield curve steepened, as 10-year yields rose while the short-end benefited from softer PCE inflation figures. In the euro area, German sovereign yields dropped, seemingly driven by risk-off sentiment as peripheral spreads widened, with France's risk premium rising towards 130bp.
On the data front, euro area national HICP inflation data surprised on the upside in September (Germany 3.3% yoy, France 3.4%, Italy 4.1%), mostly driven by energy prices, while U.S. PCE inflation posted softer figures in August (headline at 3.4% yoy and 0.3% mom, core at 3.0% yoy and 0.2% mom).