Hello traders, and welcome to Wednesday’s trading session.
Markets are surging this morning, with indices flashing green across the board. The bullish sentiment is spreading fast, and many major resistances and mid-term downtrend lines have been broken, suggesting a renewed appetite for risk among investors. It's a clear risk-on environment, and the market mood is optimistic.
The recovery in indices is impressive. After a hesitant start to the week, today's session has opened with strong bullish momentum. European markets are leading the charge, and American futures are following suit, pointing to a strong start when the U.S. market opens. With mid-term downtrend lines shattered, sentiment has clearly shifted, and we may be witnessing the start of a broader recovery wave.
On the currency front, European and Asian currencies are gaining. The euro and British pound are climbing higher, supported by improving risk sentiment. Meanwhile, American and Canadian dollars are lagging, likely a reaction to easing demand for safe haven and commodity-linked currencies.
As expected in a risk-on session, gold is undergoing a correction. After weeks of impressive gains—up nearly 30% year-to-date in 2025—today’s pullback is seen as a healthy pause, especially as money flows back into equities. Oil, on the other hand, is continuing its climb, supported by tightening supply concerns and a bounce in demand expectations.
Tesla’s earnings, reported after Tuesday’s market close, came in worse than expected, but that hasn’t stopped the stock from climbing 6% in pre-market trading. The move is a testament to the current bullish sentiment engulfing the markets. Investors appear eager to buy dips, even on weaker earnings.
Later today, earnings are expected from:
These reports will be closely watched, especially as tech and consumer sectors regain traction.
Wednesday is also a PMI-heavy day, and the early results have already started shaping market expectations:
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In the Eurozone, services PMIs came in below expectations, while manufacturing PMIs surprised to the upside.
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In the UK, manufacturing PMIs were in line, but services PMIs disappointed, falling below the 50-mark—indicating contraction.
Still to come, we await U.S. PMIs, which will add further clarity to the macro picture. If these numbers align with the risk-on mood, they could fuel more upside for indices and commodity currencies.