Tuesday's session opened September on a risk-off note. The re-escalation of U.S.-Iran tensions continued to fuel a rally in oil and gas prices, adding pressure to market-based inflation expectations and reinforcing market-implied probabilities of Fed and ECB rate hikes.
Equities fell broadly across Europe and the U.S., with technology and cyclical stocks leading the decline. Sovereign yields surged to multi-year highs, but euro area peripheral spreads were little changed. In FX markets, the dollar firmed on rising rate expectations, pressuring the euro, sterling, and the yen.
On the data front, euro area headline inflation accelerated to 3.3% yoy in August due to higher energy prices, while core inflation edged down to 2.4%. The U.S. ISM manufacturing slowed to 54.6 points in August, a figure consistent with expanding output but that was also accompanied by signals of broadening price pressures.
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.