Financial Markets Daily Report20 abril 2026
Risk sentiment improved during Friday's session, as Iran announced that the Strait of Hormuz would be completely open to commercial traffic, news that were confirmed by President Donald Trump. Energy prices fell drastically, with Brent reaching USD 90/barrel at the close of the session and TTF settling below EUR 40/MWh, while volatility also retreated.
As inflationary concerns cooled down, the market-implied probability of the ECB’s second rate hike in 2026 fell from 90% to 50%, and the expected timing of the next rate cut by the Fed advanced to late 2026. Sovereign bond yields fell in consequence, and currency markets closed mostly flat, with the Japanese yen and the Swiss franc outperforming their peers.
Equity markets rallied, with the US S&P 500 and Nasdaq indices reaching new record highs for the fifth consecutive session. This week, investors will assess the fragility of the truce reached in the Middle East, that has been reportedly broken during the weekend. On the macro front, focus will be on the release of the April PMIs for both the Eurozone countries and the US.