Daily Report

Markets rebounded on Monday as geopolitical fears eased amid signs that Iran was seeking to end hostilities with Israel. Sovereign yields fell modestly across the eurozone with peripheral spreads narrowing slightly, as news that the EU would be willing to accept a broad 10% tariff on EU goods from the US were dismissed by the European Commission.

US Treasury yields rose ahead of key economic data on retail sales and import prices which will be released today, and the FOMC meeting on Wednesday. Equities recovered globally in a broad-based rebound, with cyclicals and tech leading gains. US and European indices rose across the board, with the Ibex among the top performers. Volatility declined sharply.

In FX, the dollar weakened marginally against the euro and other major peers, with the yen underperforming as markets awaited today's BoJ meeting (which kept interest rates unchanged, but slowed its pace of its quantitative tapering). In commodities, oil prices ended lower in a volatile session, while European natural gas prices were flat and gold also declined.