Daily Report

26 de Junho de 2025
Financial Markets | daily report 26.06.2025

Investors traded cautiously in a session without any major macroeconomic data releases. Attention shifted to the NATO
meeting where members agreed to increase defense spending to 5% of GDP ——, ongoing trade uncertainty, the so far
upheld ceasefire between Israel and Iran, and evolving monetary policy expectations.

In this context, euro area sovereign bond yields edged higher on expectations of higher defense spending. US 2
year Treasury yields fell on the back of increased expectations of more than two interest rate cuts from the Fed this year. The euro rose
against the dollar to 1.167, the highest level since 2022.

Stock markets were mixed. The main indices in the euro area pared small losses, while US stocks edged higher, boosted by
gains in large cap tech stocks. In commodities, Brent crude prices held around $67 per barrel as the risk of further escalation
of the conflict in the Middle East remains contained for now.