Risk sentiment improved at the start of the week after Trump signalled that further military action against Iran was unlikely while diplomatic efforts continued. The remarks triggered a sharp decline in oil prices, with Brent falling almost 6%, helping to ease inflation concerns and supporting a broad rebound in global equities following last week's sell off.
In sovereign bond markets, peripheral euro area bonds outperformed, leading to a modest narrowing of sovereign spreads.In contrast, US Treasury yields moved higher, with the curve flattening as short dated yields rose more than long dated maturities ahead of today’s CPI release.
In FX markets, the dollar weakened against major currencies, including the euro and the yen. Stocks ended the session higher on both sides of the Atlantic. In the US, gains were led by technology shares despite Nvidia underperforming amid companyspecific news.
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.