European Risk Sentiment Improves as Oil Prices and US Treasury Yields Retreat

Key Facts

1WTI crude oil prices dropped by 2.67% to reach $87.09 per barrel.

2BOJ Governor Ueda stated inflation is nearing 2%, keeping a December rate hike firmly in play.

310-year US Treasury yields fell by 3.4 basis points to 5.273%.

WTI crude oil prices dropped by 2.67% to reach $87.09 per barrel, according to reporting from investinglive.com. The 10-year US Treasury yields fell by 3.4 basis points to 5.273% during the same period. Global risk sentiment improved during the European session as European stocks and S&P 500 futures moved higher, supported by a lack of direct escalation between the US and Iran.

Bank of Japan Governor Kazuo Ueda stated that inflation is nearing the 2% target, keeping a potential interest rate hike in December firmly in play. In Europe, fiscal concerns stabilized as the French government unveiled plans to narrow its budget deficit through spending restraints and tax increases, leading to a narrowing of yield spreads. This improvement in market sentiment coincided with a pullback in the US dollar and a retreat in energy costs.