Daily Report

6 de Março de 2025
Financial Markets | daily report 06.03.2025
  • Euro area sovereign bond yields rose significantly after Merz, expected to become Germany's next chancellor, announced a political deal to raise hundreds of millions of euros for defense and infrastructure, claiming, "the rule for our defense has to be 'whatever it takes'". Germany's 10-year sovereign yield saw its largest single-day gain since 1990 (+30bp).
  • With sovereign yields rising across the EU, peripheral risk premia nonetheless slightly narrowed. Euro area stock markets rallied with the German DAX leading with gains of +3% in a single session. Euro area banks, materials and industrials were among the top performers. The euro strengthened to $1.08 against the dollar.
  • In the US, the slightly higher-than-expected ISM services index eased fears of a major slowdown in the US economy and sentiment recovered. Treasury yields edged higher and equities advanced.
  • Today's attention will be on the ECB's Governing Council meeting, expected to lower interest rates by 25bp.