Uncertainty continued to dominate markets in yesterday's session, as no progress was made in the Middle East conflict. The naval blockade of the Iranian coast and of the Strait of Hormuz persists, and peace talks have not been resumed. Market volatility ticked up and Brent prices continued to rise, reaching $105/barrel.
Equity markets in the euro area closed mixed despite the contraction shown in the PMI composite of April (48.6 vs 50.7 in March), weighed by the services sector. In the US, manufacturing reached a 4-year high (54 vs 52.3 in March), mainly due to anticipation to supply disruptions. Nonetheless, stock indices closed with losses.
In rates markets, investors traded cautiously ahead of next week's ECB and Fed meetings, and government yields closed mostly flat on both sides of the Atlantic. Currency markets were quiet as well, with the US dollar modestly strengthening and the EUR/USD cross settling below 1.17 for the first time since early last week.
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.