Markets had a choppy session on the day of the FOMC's meeting. US Treasury yields initially fell, stocks gained and the dollar fell on the announcement of the widely expected 25bp rate cut. But all later reversed course as investors digested a dispersedot plot which signaled a large group of the FOMC still remains hawkish. Treasury yields rose and stocks ended mostly flat.
In the euro area, sovereign yields declined ahead of the Fed's meeting (with peripheral risk premia remaining broadly unchanged), while the region’s main equity indices edged lower. Today, the Bank of England will announce its monetary policy decision, with markets widely expecting rates to be held steady at 4.00%.
Elsewhere, in commodities markets, oil prices eased (Brent down to $68/barrel) on reports of higher-than-expected inventories in the US. Gold prices also edged lowered after hitting a record high of $3707 during the session. In FX markets,the dollar made small gains against the euro and traded closer to $1.18.
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.