Global daily: Unwanted, not unwarranted

Oil prices briefly climbed above USD 105/bbl after renewed disruptions around Hormuz, before easing on signs of US-Iran de-escalation. Yet Oil and diesel prices remain elevated. Treasury yields fell after strong demand at US bond auctions, while French spreads remain high amid fiscal and political uncertainty. However, markets appear to view current spread levels as attractive, limiting the likelihood of ECB intervention despite repeated references to its tools against “unwarranted” market moves. September ECB minutes kept a December rate hike firmly on the table. Meanwhile, apart from France’s budget negotiations, attention is turning to EU-China trade talks and incoming US consumer sentiment data.