European investors began the week with a risk-off tone, as US markets were closed for the Martin Luther King holiday. Sentiment deteriorated after Trump announced plans to impose new tariffs on European countries siding with Denmark in the Greenland dispute and the EU hinted at possible retaliation.
European sovereign curves steepened, with short-end yields declining as markets priced in a very slight monetary easing by the ECB in the upcoming months in this context. Peripheral spreads were mixed; French spreads narrowed after PM Lecornu signaled the intention to approve the draft budget without parliamentary approval, invoking Article 49 of the Constitution.
European equity indices fell. The euro strengthened against the dollar but weakened against the Swiss franc, which acted as a safe haven. In commodities, gold extended its gains, while European natural gas prices dropped after last week’s sharp rally, a move likely to attract additional LNG cargoes and boost supply.
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.