Investors ended August with a mixed session as markets remained focused primarily on inflation data and monetary policyexpectations (for a quick review of last month’s financial market developments, see our publication "Pulso Económico" to bereleased today).
Inflation data in the euro area was somewhat mixed in August: lower in France (from 0.9% to 0.8% YoY) and Italy (from 1.8%to 1.7% YoY), stable in Spain at 2.7% YoY, and higher in Germany by 0.3pp to 2.1% YoY. Sovereign bond yields rose across theeuro area while stocks declined. Expectations for the next ECB rate cut remained centered on March 2026.
In the US, personal spending rose 0.5% in July (the strongest increase in four months) while core inflation picked up 0.1pp to2.9% YoY (as measured by the PCE price index, the Fed’s preferred inflation gauge). Despite the stronger-than-expectedspending data, investors still anticipate a September rate cut. Longer-dated Treasury yields edged higher, and stocks fell.
In currency markets, the EUR/USD pair ended close to 1.17, after trading mostly in the 1.16–1.17 range throughout August.
BANCO BPI, S.A., com sede na Avenida da Boavista, 1117, 4100-129 Porto; Capital Social: € 1 293 063 324,98; matriculada na CRC Porto sob o número de matrícula PTIRNMJ 501 214 534, como o número de identificação fiscal 501 214 534. Intermediário financeiro registado na CMVM com o n° 300 e no Banco de Portugal sob o código n° 10. Agente de Seguros n.º 419527591, registado junto da Autoridade de Supervisão de Seguros e Fundos de Pensões em 21/01/2019, e autorizado a exercer atividade nos Ramos de Seguro Vida e Não Vida.