The Federal Reserve left the fed funds rate unchanged at 3.50–3.75%, while striking a hawkish tone and projecting higher inflation. Chair Powell noted that the economic impact of the Middle East conflict remains uncertain but could add to inflationary pressures and weigh on activity. US Treasury yields rose across the curve, as expectations for a rate cut in 2026 declined toward 50%, while equities ended lower and the dollar strengthened.
Risk sentiment deteriorated further amid escalating tensions in the Middle East, with Iran and Israel targeting major energy infrastructure. Brent crude surged above $110/barrel, weighing on global markets. European equities declined, while sovereign yields rose across the region, and the euro weakened below 1.15 against the dollar.
European natural gas (TTF) rose +6% to near €54/MWh, with futures shifting higher toward €52/MWh by year-end (from €49 previously). Gold eased below $5,000/ounce, pressured by the stronger dollar following the Fed meeting.
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.