Hello traders! It’s a busy Thursday on the markets, as expected. Today’s events have brought a mix of surprises and expected outcomes, driving activity across currencies, commodities, and indices. Let’s dive into what’s happened so far and what’s still ahead.
Key Events on the Economic Calendar
We’ve already seen significant releases, including the European Central Bank's (ECB) interest rate decision, which delivered the expected rate cut. During the ECB press conference, Christine Lagarde shared several key insights:
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The Eurozone economy is expected to remain weak in the near term.
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The inflation uptick was anticipated, with wages, profits, and geopolitical tensions posing additional risks.
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The rate cut decision was unanimous, and the ECB believes inflation will hit its target by 2025.
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The ECB is not yet ready to discuss stopping the rate cuts and may not have greater clarity on trade risks by March.
Initially, the euro strengthened on Lagarde’s comments but quickly gave back those gains, leading to current weakness.
In the U.S., advanced GDP came in lower than expected at 2.3% versus the forecasted 2.7%, further weighing on the American dollar, which is one of the weaker currencies today.
Currency Market Overview
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Stronger Currencies: Japanese yen
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Weaker Currencies: New Zealand dollar, Australian dollar, and American dollar
The euro remains volatile but has not made any significant directional move despite the ECB announcements.
Commodities and Indices
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Commodities are trading with positive sentiment, with both oil and metals gaining.
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Indices are also in the green. U.S. markets are attempting a recovery after Monday’s tech-driven drop, while European indices continue to trade near or at long-term highs, unaffected by recent turmoil.
Earnings Season Highlights
The earnings calendar remains a central focus. Yesterday, we saw results from Microsoft, Meta Platforms, and Tesla:
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Microsoft: Reported better-than-expected earnings but is currently down 5% after early trading volatility.
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Meta Platforms: Strong earnings, with the stock up 5%.
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Tesla: Delivered disappointing results, although the price reaction has been muted, trading near flat.
MasterCard reported earnings before the market opened today, beating expectations and driving the stock 5% higher. Later today, Apple and Visa will publish their results, with Apple’s report expected to be a significant market mover.