Financial Markets Daily Report14 octubre 2025
Investor sentiment improved at the start of the week as President Trump softened Friday’s rhetoric on China and both sides signaled openness to resuming trade talks. Risk appetite also benefited from the de-escalation in the Middle East. Global equity indices advanced, led by the technology sector, while volatility declined sharply.
In fixed income, US Treasury markets were closed for Columbus Day. European sovereign yields fell modestly, as did peripheral spreads, despite persistent political uncertainty in France, where President Macron reappointed Lecornu, prompting renewed threats of censure motions from opposition parties.
In FX, the euro depreciated slightly against the dollar. In commodities, Brent crude remained below $65, supported by improved sentiment on trade and reduced supply risks following the Gaza ceasefire, although prices faced headwinds from Trump's remarks on arming Kyiv with long-range missiles, which could potentially disrupt Russian oil output.