Daily Report

17 de Setembro de 2024
Financial Markets | daily report 17.09.2024
  • The continued repricing of the Federal Reserve's interest rate decision later this week was the main driver of financial markets during yesterday's session. The probability of a 50bp rate cut in the upcoming meeting rose to 70% from 50% last week, and the total amount of cuts in 2024 is now expected to be 120 bp, up from 100 bp.
  • In this context, sovereign bond yields moved down on both sides of the Atlantic. The 2-year Treasury yield touched a two-year low during the trading session, and the entire curve shifted down a 3 bp. Euro area yields were also down around 3 bp, leaving peripheral risk premia broadly unchanged.
  • Equity markets were mixed. Euro area indices ended the session lower, except the Ibex-35, boosted by some energy and pharma stocks. In the US, investors rotated out of big tech and into the broader index on hopes of a large interest rate cut from the Fed. The euro strengthened against the dollar, trading around 1,11 EURUSD.