Good morning on this Thursday. As the European session begins, markets are showing signs of strain with a notable shift towards safe-haven assets, driven by late Asian session volatility.
Starting with the indices, they continue to decline, with futures indicating a downward trend towards key support levels. Despite better-than-expected Australian inflation data yesterday, the Australian dollar remains weak. Similarly, the German prelim CPI came in below expectations but had a minimal impact on the Euro.
In the macroeconomic calendar, today features Switzerland's GDP at 0.3%, the US prelim GDP at 1.2%, alongside the usual unemployment claims forecasted at 218,000, and pending home sales anticipated to fall by 1.1%.
On the commodities front, oil has reversed its recent gains after three bullish days, experiencing a bearish turn as it bounced off a midterm downtrend line. Gold and silver are also down, with silver dropping by 3%, primarily due to the stronger dollar.
Turning to currencies, safe havens like the Japanese yen, Swiss franc, and US dollar are on the rise, while the Australian and New Zealand dollars are underperforming. Overnight remarks from Bank of Japan board member Seiji Adachi contributed to the yen's strength.
In corporate news, Salesforce's earnings report showed better-than-expected EPS but lower revenue, leading to a projected 16% drop in its stock price. Today, we expect earnings reports from Costco, RBC, and Dell, with Costco and Dell reporting post-market and RBC pre-market.
Overall, the market sentiment remains bearish, with traders bracing for further declines in the indices. Thanks for joining us this morning.