Risk aversion intensified on Monday after President Trump reinstated the Hormuz blockade for Iranian ships and imposed a transit levy on non-Iranian cargo, fuelling concerns over energy supply disruptions. Brent crude oil prices rose sharply, inflation expectations moved higher and market volatility increased.
Money markets now price in two rate hikes by both the ECB and the Fed over the next twelve months. Fed Governor Waller's hawkish remarks, suggesting further tightening could be needed if core inflation remains elevated, reinforced the move. Sovereign yields rose across the US and euro area, with yield curves flattening.
European equities were mixed, while US and Asian indices declined, led by semiconductor stocks. In FX markets, the dollar strengthened against most major currencies and particularly the yen after reports that Japan's Finance Ministry has no plans to alter public pension fund allocations in a way that could trigger significant repatriation flows.
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.