Yesterday's was a volatile session in the market, driven again by geopolitical developments the Middle East. It started with a risk-off tone, as Iran reportedly suspended its contact with the US in response to the Israelian attacks to Lebanon; however, later news reporting that Hezbollah was ready to agree to a ceasefire switched the market sentiment in late session.
Energy prices fluctuated accordingly. Brent prices nearly touched USD 98/barrel before closing the session at USD 95, while TTF natural gas was a more stable. Euro area equity indices closed with broad losses, while US ones picked up the positive sentiment and registered modest gains, as tech companies forged ahead.
On the macro front, euro area manufacturing PMI's came out in line with expectations, showing the resilience of the sector despite the war in Iran. Government bond yields rose on persistent inflation expectations, widening peripheral spreads by 1 to 2 b.p. In currency markets, the dollar strengthened against peers as uncertainty surged.
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.