Moderate risk-off sentiment prevailed across markets following the upside surprise in U.S. inflation, while oil prices remained elevated amid ongoing tensions in the Middle East. The CPI data came in slightly higher than expected, standing at 3.7% YoY, driven primarily by energy prices, particularly gasoline.
The dollar rallied and strengthened against the euro while markets modestly raised the chance of a rate hike at the Fed’s October meeting to roughly 32%. Despite an initial sell-off following the inflation release, U.S. Treasuries recovered during the session, while European sovereign yields remained stable, with French government bonds slightly underperforming.
On the stock market, U.S. equities sold off with mixed results from major banks, while European stocks closed modestly higher, supported by technology shares. Commodity prices rose following a new attack in Saudi Arabia, this time hitting an office building owned by Saudi oil producer Aramco.
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.