Global financial markets had a subdued start to the week on Easter Monday, with only the US and Asian markets open, whileEuropean markets remained closed.
In the US, Trump's criticism of Fed Powell's interest rate policy had investors worried about the possibility of Trump curtailingthe Fed's independence. In this context, long term Treasury yields rose and the yield curve steepened, while the dollardepreciated against its peers. Equity indices fell as well despite Trump's comments that tariff talks were progressing.
In the eurozone, markets closed last Holy Thursday with little risk appetite. The ECB cut rates by 25bps, seeking to maximiseits room for manoeuvre to respond to any new shock, while acknowledging that US tariffs were clouding the economicoutlook, which made sovereign yields fall while investors discounted a higher probability of three more rate cuts this year.
This week's focus will be on the IMF's flagship reports due today and the preliminary April PMI data on Wednesday.
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.