European Markets Gain as Oil and Yields Cool After Central Bank Decisions

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.