As widely expected by markets, the Federal Reserve left the fed funds rate unchanged at 4.25% - 4.50% range. The Fed rebalanced its scenario towards higher inflation and lower growth, while the median dot plot again signaled two rate reductions by the end of this year, sending US Treasury yields lower, boosting US equities and strengthening the dollar.
Ahead of the Fed’s decision, euro area markets were mixed during yesterday’s session. Sovereign bond yields decreasedslightly, as the eurozone inflation estimate for February was revised downwards (from 2.4% to 2.3% yoy).
In equity markets, European stocks were mixed, ahead of Bundesrat approval of the German fiscal stimulus package.
In commodities, European gas reference prices increased sharply (to around 43.4€/MWh) on the back of ongoing talksbetween the US and Russia to end the war in the Ukraine, and Brent prices edged higher (close to $70.8/barrel of Brent) asUS data showed a draw in fuel inventories.
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.