Sovereign bond yields declined globally, most notably in the euro area, where peripheral spreads narrowed slightly. Equity markets rallied, with the S&P 500 reaching a new record high, as investor focus shifts toward the start of the earnings season. The dollar extended its weakening trend, with the EUR/USD now at 1.18.
On the macro front, the IMF revised down its 2026 global growth forecast to 3.1% (from 3.3%), citing the negative impact of the energy shock stemming from the Middle East conflict. The Fund warned of more adverse scenarios should the conflict persist and energy prices remain elevated.