Hello traders, welcome to Friday morning market commentary. As we wrap up the Asian session and head into the European open, the sentiment remains tense across global markets following Thursday’s chaos sparked by a new wave of U.S. tariffs announced by Donald Trump.
The reaction was swift and sharp. Global indices plunged on Thursday, with U.S. benchmarks suffering heavy losses, and the drop extended into Asia overnight. The Nikkei closed deep in the red, and futures across Europe are pointing lower at the open, suggesting a continuation of the bearish pressure.
Currencies reflect a classic flight to safety. The Japanese yen and Swiss franc are showing strength as traders rush into safe havens. Meanwhile, the U.S. dollar is struggling—becoming one of the weakest major currencies of the week—hit hard by the implications of the tariff shock. The euro is holding steady, supported by improved sentiment in the region, while the Australian and New Zealand dollars are under pressure.
On the commodity front, we saw some initial volatility. Gold experienced a brief correction on Thursday but managed to claw back some ground by the end of the session and is now holding above key support. Oil, however, is taking a bigger hit. The commodity is down for the week and is trading lower again this morning, as the risk-off sentiment and global demand concerns weigh heavily.
As for data, Thursday brought us ISM Services PMI from the U.S., which came in above the 50 mark but still below expectations, adding to the nervous tone in the market. Swiss inflation came in slightly below expectations, yet the franc remains firm.
Now, all eyes turn to today’s key event: U.S. non-farm payrolls. The report is expected at 137,000 jobs. This data could either confirm the market’s current fears or offer a lifeline to bulls. We’ll also get Canadian job figures later in the day.
In short, Friday opens under heavy pressure. Tariff fears have turned sentiment negative, and whether we get a rebound or a deeper slide may depend entirely on how the labor market data prints this afternoon. Stay cautious and watch for potential breakouts or reversals across key technical levels.