The Portugal Brief -- Markets, Business & Tech Briefing, March 19, 2026

PSI Closes in the Red Despite BCP Rally

Lisbon's PSI index fell 0.44% to 9,134.62 points on Wednesday, pressured by energy names and Jeronimo Martins. EDP led losses with a 2.02% decline to 4.358 euros, while EDP Renovaveis dropped 1.98%. BCP bucked the trend, surging 2.64% to 0.8168 euros on positive sentiment across the European banking sector.

Oil Shock: Brent Surpasses $108

Brent crude jumped 5.2% to $108.79 per barrel after Iran threatened Gulf energy infrastructure following the Israeli strike on the South Pars gas field. WTI rose to $97.28. The energy spike reversed early European gains and weighed on sentiment across the continent. Markets now watch for potential supply disruptions and further escalation.

Euro Weakens Against the Dollar

The euro depreciated 0.27% against the dollar to trade at $1.151. All eyes turn to the Federal Reserve's interest rate decision due at 18:00 Lisbon time, with no change expected but traders closely watching Chair Powell's commentary on inflation and the outlook for future rate cuts.

Producer Prices Decline Accelerates

Portugal's producer price index fell 3.5% year-on-year in February, a sharper decline than the 2.1% drop in January. Prices have been falling since January 2025, suggesting easing cost pressures for manufacturers even as retail energy prices remain elevated due to the Middle East crisis.

Construction Investment Hits 28 Billion Euros

Investment in construction grew 5.5% in 2025 to reach 28 billion euros, according to the AICCOPN industry association. Public works tenders totalled approximately 10 billion euros, described by the Housing Minister as an "unparalleled" figure. The sector is benefiting from EU Recovery and Resilience Plan funding and the government's push to accelerate housing delivery.

Cortizo: 100 Million Euro Industrial Investment in Chaves

Spanish multinational Cortizo will build an 80,000-square-metre aluminium factory in Chaves, creating up to 450 jobs. The Project of National Interest classification grants access to streamlined licensing and tax incentives. Operations are expected to begin in late 2027.

Mortgage Boom: Foreign Buyers Account for 45% of Lending Volume

While foreign nationals represented 30% of new mortgage borrowers in 2025, they accounted for 45% of the total amount lent, down from 50% in 2023. This reflects higher average loan values among foreign buyers, driven largely by Brazilians, Americans, and Angolans purchasing properties in Lisbon and the Algarve.

Deposit Return Scheme: Business Compliance Deadline April 10

All retailers and hospitality businesses must be ready for the new 10-cent deposit return system by April 10. Deposits must appear on invoices but are exempt from VAT. Companies need to adapt their accounting, invoicing, and point-of-sale systems. The target is 90% container collection by 2029.

Galp Rises on Oil Surge

Galp Energia was one of the few winners on the PSI, gaining 0.80% to 21.35 euros as oil prices spiked on Middle East tensions. The company's upstream production exposure gives it direct upside from elevated crude prices, though sustained high energy costs could weigh on Portugal's broader economy.

Moving to Portugal Show Returns to London

The "Moving to Portugal" show returns to London on March 26, reflecting continued strong demand from UK nationals considering relocation. The event covers property, visas, tax planning, and lifestyle topics. UK interest in Portuguese residency has remained robust since Brexit, with Portugal consistently ranking as a top destination for British retirees and remote workers.