Markets, Business & Tech Briefing: PSI Falls 1.2% as Energy Reverses, BCP Bucks the Slide, TAP Bids Loom
Monday, 6 July 2026. The new trading week opened on the back foot: after a rally that carried the PSI to a one-month high on Friday, Lisbon reversed course and tracked a softer Europe lower, with the very energy names that led the climb now leading the retreat. Below: the session's damage and who bucked it, why Portuguese debt still funds near its cheapest levels in years, and the two business stories setting the tone for the week — the decisive stretch of the TAP Air Portugal sale and a new state savings product that landed in front of households this morning.
Where the market stands
Portugal's benchmark PSI closed Monday at 9,217.31 points, down 1.19%, or roughly 111 points, its first meaningful setback after back-to-back gains lifted the index to a one-month high of 9,328.28 on Friday. The move mirrored a broadly weaker session across European bourses, and it was led lower by the same energy complex that had powered last week's advance: the EDP parent fell about 2.30%, and grid operator REN — Redes Energéticas Nacionais (National Energy Networks) was among the heaviest fallers. Retailer Sonae slipped around 1.65% and grocer Jerónimo Martins eased a further 1.45%, extending a slide that has kept it pinned near 52-week lows as price deflation at its Polish discounter Biedronka (Ladybird) continues to weigh. Telecom NOS was one of the session's weakest large caps. The lone conspicuous bright spot among the blue chips was lender BCP — Banco Comercial Português (Portuguese Commercial Bank), which edged higher against the tide, holding onto the gains that have made the banks this year's standout performers.
Bonds still tight, the euro slips
In fixed income, the Portuguese 10-year yield held near 3.3%, little changed as euro-area yields hovered. With the German 10-year Bund in the region of 2.9%–3.0%, the spread stayed around 40 basis points — one of the tightest readings in years and a continuing vote of confidence in Portugal's public finances, which now fund near the cheapest levels on the euro-zone periphery. In currencies, EUR/USD eased about 0.1% to around 1.1424, giving back a little of last week's advance as the dollar firmed; the greenback had softened on Friday after a weak US jobs report showed just 57,000 payrolls added, but steadied to start the week. The compressed bond spread and a still-firm euro remain a supportive backdrop even on a down day for equities.
Business: TAP's sale enters its decisive stretch
The dominant corporate story of the week is the privatisation of flag carrier TAP Air Portugal, now entering its final phase. Two bidders remain in the contest — Air France-KLM and Lufthansa — and both are expected to file binding offers by the end of July for a stake of up to 44.9%, with the State retaining a controlling position and a further 5% reserved for employees. The government is targeting completion of the sale by early September. TAP's transatlantic network, and in particular its strength on routes to Brazil, is the prize both European groups are chasing; whichever prevails, the outcome will reshape the competitive map at Lisbon's airport and rank among the largest transactions in the Portuguese economy this year. Any firm headline on price or preferred bidder over the coming weeks is the single item most likely to move domestic sentiment.
Business: a new state savings note lands in front of households
Away from the tape, a fresh benchmark for household savings opened to the public this morning: the State's new 10-year Treasury Certificate (Certificados do Tesouro) began accepting subscriptions on Monday, paying 2.35% in its early years and stepping up to 3.35% in the final year of the term. The product matters beyond the retail-savings desk because it lands squarely in the middle of a fight for deposits: after years of shedding branches, Portugal's banks are competing harder for customer funds even as they ride fat net-interest margins, and a government-guaranteed note offering north of two percent gives savers a visible alternative to a bank account. For lenders such as BCP and state-owned Caixa Geral de Depósitos (General Deposits Bank), the reopening of the certificates is another reminder that the era of near-costless deposits is over.
The week ahead
With the rally interrupted, the immediate question is whether Monday's pullback is a pause or the start of a broader consolidation after the index brushed its one-month high. Watch whether the EDP family and Galp can steady after leading the decline, whether Jerónimo Martins can finally find a floor near its lows, and whether BCP and the banks keep outperforming as deposit competition intensifies. The TAP binding-offer deadline at month-end looms over the whole session, and a still-tight bond spread and firm euro should keep the macro backdrop steady while equity sentiment tracks the wider European mood.
