Investors kicked off the week on a cautious note, with attention set on upcoming monetary policy decisions. U.S. Treasury yields edged higher ahead of Wednesday’s Federal Reserve meeting, where a rate cut is widely expected (market-implied odds are near 100%) though uncertainty persists around the Fed’s forward path.
Euro area sovereign yields also moved higher following hawkish commentary from Isabel Schnabel, who noted that both growth and inflation risks remain skewed to the upside, suggesting the ECB’s next move could be a rate hike, albeit not in the near future. ECB official Peter Kazimir echoed a similarly hawkish stance, warning of upside inflation risks.
Global equities traded mixed in a choppy session, with modest declines in the U.S. and a largely flat performance across the euro area. In currency markets, the dollar was little changed and the EUR/USD held near 1.16. In commodities, oil prices fell around 2% after Iraq restored output at an oilfield representing roughly 0.5% of global supply.
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.