Hello traders, welcome to Tuesday. The calendar is relatively quiet today, with only a few speeches lined up from key central bankers like Bank of England Governor Bailey and ECB President Lagarde. These speeches are scheduled for later in the day, so during the European session, we expect limited fundamental drivers.
European indices had a negative session on Monday, and the correction continues into Tuesday. European stocks opened weaker, following yesterday’s declines. Meanwhile, the S&P 500 and NASDAQ showed strength and resilience in the US, with the S&P 500 starting the week strong despite broader market corrections in Europe.
Turning to the commodity markets, it was another strong session for gold and silver. Silver, in particular, stood out with a notable upswing, continuing its bullish momentum. In contrast, oil dropped again and continues to struggle. The divergence between precious metals and energy prices has been ongoing for some time, with oil unable to find the same bullish footing.
On the currency market, the Japanese yen remains the weakest major currency. At the same time, the Swiss franc, American dollar, and New Zealand dollar are showing strength, leading to notable divergence between safe havens. Yesterday, Swiss franc to Japanese yen saw a very bullish session, benefiting from this trend. The New Zealand dollar and Australian dollar are gaining ground, while the British pound is attempting to recover after recent pressure. Euro, on the other hand, continues to show mid-term weakness, particularly in the last 10 days and over the past month.
Earnings We are also heading into some significant earnings reports in the US. Today, expect results from Philip Morris, Texas Instruments, and Lockheed Martin, with big names like Tesla and Coca-Cola set to release earnings tomorrow.