• In the last session of the week, stock markets advanced both in the U.S. and Europe, while in sovereign bond markets yields were roughly stable.
• On Friday, S&P affirmed Portugal's BBB-sovereign rating (stable outlook). The agency forecasts solid GDP growth and further budgetary consolidation over the next two years. However, it warned that the high levels of private-and public-sector external debt remain a weakness.
• Fitch affirmed Italy's BBB sovereign rating (stable outlook). However, the agency pointed that the March 4 election result has made the formation of a stable government difficult, it has increased the likelihood of some fiscal loosening, and it has further weakened the prospects for structural economic reform.
• This week, investors will focus on the Federal Reserve and the BoE's monetary policy meetings (Wednesday and Thursday, respectively) as well as on Euro Area March sentiment indicators.