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European Markets Gain as Oil and Yields Cool After Central Bank Decisions
European markets saw gains as oil prices and bond yields eased following the Fed and BOE rate decisions.
17/09/2026 12:116 min read
Key session headlines:
Market figures:
- Brent crude: down 2.3% to $103.40
- WTI crude: down 1.6% to $100.80
- 10-year Treasury yields: -2.8 bps to 4.975%
- AUD leads the day, GBP lags
- Gold: +1.4% to $4,323
- European equities higher; S&P 500 futures +0.8%
- Bitcoin: +0.5% to $76,490
The day after the Federal Reserve's decision, markets appeared to catch their breath as oil and bond yields eased.
Brent crude dropped more than 2% to $103.40 after Saudi Arabia offered extra crude cargoes to Asian refiners via ship-to-ship transfers near Oman’s Sohar port. That move is softening the effect on global supply.
Ten-year Treasury yields edged down to 4.975% as traders assessed the Fed's decision and the inflation outlook.
Even so, oil remains above $100 and yields stay near 5%. The improved risk sentiment appears to be a relief rally rather than a genuine risk-on shift, so caution is warranted.
The dollar edged lower, pushing USD/JPY back under 156. Sterling underperformed after the Bank of England held rates at 3.75% as widely expected, with a 6-3 vote. Pill, Mann, and Greene dissented, favoring a hike to 4%. GBP/USD slipped from 1.3405 to 1.3360 on repositioning, as markets had priced about a 30% chance of a rate increase.
European equities rose modestly, and US futures advanced as investors embraced the post-Fed relief. Gold climbed 1.4% to $4,323, with traders expecting a stronger rebound later in the week.
With the Fed decision behind, attention shifts to bonds to see if yields will continue their upward push this week.
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