As expected, the ECB kept interest rates unchanged (depo at 2%) and reinforced its meeting-by-meeting data-dependent strategy (see our take here). Euro area sovereign yields edged higher, and equities had a mixed session across the region. On the macro front, euro area GDP grew 0.2% qoq in Q3 (1.3% yoy), up from 0.1% qoq in Q2.
Across the Atlantic, U.S. Treasury yields rose slightly as investors continued to digest a more hawkish-than-expected Fed. Stocks fell sharply as worries about AI spending weighed on mega-cap tech companies. Gold bounced back above $4,000/ounce as investors fled to quality.
Regarding trade developments, the U.S. and China announced a temporary trade truce, which involves the U.S. lowering tariffs on Chinese imports by 10%, and China removing export controls on rare earths while resuming purchases of several U.S. farm products. The dollar strengthened on news of the agreement (EURUSD below 1.16).
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.