Trade wars continue to dominate market sentiment, but there has been a slight improvement following the announcement that tariffs on Mexico and Canada are paused. While this news offers some relief, it hasn’t sparked a major rally as traders remain cautious about the potential for further escalations. Markets are still on edge, waiting for new developments.
In Europe, some indices are attempting to push higher, though gains remain limited. Across the Atlantic, U.S. indices are trading on the red side, reflecting lingering concerns about global trade tensions.
On the currency market, we see weakness in the Japanese yen, Australian dollar, and New Zealand dollar. In contrast, European currencies are performing well today. The Swiss franc and emerging market currencies such as the Polish zloty, Czech koruna, and Hungarian forint are climbing higher. Meanwhile, both American dollars—the U.S. dollar and Canadian dollar—are also trading in positive territory. The Canadian dollar, in particular, is making an effort to reverse recent losses linked to tariff concerns.
In the commodities market, oil continues to weaken, recently hitting new lows amid supply concerns and reduced demand expectations. Similarly, precious metals, including gold and silver, are undergoing a correction, losing some of the gains made earlier in the week.
Today’s market activity might be the calm before the storm, with traders closely monitoring further developments in the trade wars. Key events on the macro calendar include the JOLTS job openings report from the U.S., expected at 8 million, and job data from New Zealand later in the day.
On the earnings calendar, several major U.S. companies are set to release their results. Merck and Pepsi will report before the market opens, while Google and AMD are scheduled to publish their earnings after the market close. These reports are likely to drive sector-specific volatility as investors assess corporate performance in light of ongoing macroeconomic uncertainties.