Financial Markets Daily Report22 septiembre 2026
Financial markets started the week on a positive note, as hopes of a diplomatic resolution to the war in Iran caused energy prices to fall, pushing inflation expectations lower on both sides of the Atlantic. This also eased central banks' rate hike expectations, although investors still price in three rate hikes by both the ECB and the Fed over the next 12 months.
Sovereign bond yields fell in this context, reversing most of last Friday's increase. Eurozone peripheral spreads narrowed too, although the French spread remains above 100 bps. In FX, the dollar appreciated against its peers, as hawkish remarks from Fed officials, flagging persistent supply shocks, kept a lid on Treasury yields.
Stocks had a positive session, with most major indices around the world advancing. AI-exposed sectors and indices led gains in the US, with chipmakers and Mag-7 companies posting gains, while energy companies recorded losses on both sides of the Atlantic.