The Federal Reserve held the federal funds rate at 4,25%-4,50%, citing solid labor market conditions and above targetinflation. Financial markets made a hawkish reading of the Fed's accompanying statement and pushed back expectations ofthe next cut from September to October. The probability of a second cut in December dropped from 80% to 40%.
The change in monetary policy expectations saw U.S. Treasury yields rise, especially at the shorter end of the curve. U.S.stocks ended mostly flat despite having opened with gains, and the dollar strengthened to its highest level since late May.The euro is now trading around $1.14, well below the $1.18 highs at the beginning of the month.
Euro area financial markets had a muted session, with sovereign yields ending flat and stocks posting only mild gains.
On the data front, euro area 2Q GDP growth slowed to 0.1% qoq, with strength in France and Spain compensating forweakness in Germany and Italy. U.S. 2Q GDP rebounded to 0.7% qoq (3.0% annualized), driven by a sharp drop in imports.
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.