European stock markets are performing well today, with all major bourses in positive territory, hovering just below session highs. US futures are also on the rise, with the Nasdaq (NQ) leading the way after Tesla (TSLA) posted impressive results, sending its stock up by 10.7%. This robust performance has helped bolster market sentiment on both sides of the Atlantic.

Dollar Weakens as Yen Outperforms

The US dollar is losing ground, giving back some of the gains it accumulated earlier in the week. The Japanese yen (JPY) is the standout performer in the currency market, with the USD/JPY pair sliding back to the 151 range, reflecting renewed strength for the yen.

Bond Markets: USTs and Bunds Firm, Gilts Underperform

In the bond market, US Treasuries (USTs) and German Bunds are on firmer footing. However, economic data from Europe continues to show weakness, as reflected in another round of poor PMI (Purchasing Managers’ Index) figures. Meanwhile, UK Gilts are underperforming, pressured by reports that Chancellor Rachel Reeves is expected to announce significant changes to fiscal rules. These changes could release GBP 50 billion for new spending, causing jitters in the bond market.

Commodities: Oil Gains Amid Iran Fire Reports, Metals Firm

In the commodities space, crude oil prices are rising, with buying interest picking up after unconfirmed reports of a fire near an Iranian nuclear facility in Karaj. The geopolitical risk is driving a bullish tone in the market. Gold (XAU) and base metals are also firmer, benefiting from the weaker dollar and overall risk-on sentiment.

What’s Ahead: Key Data and Central Bank Speakers

Looking forward, investors will be watching several important US economic reports, including Flash PMI figures, weekly jobless claims, and new home sales data. Central bank officials will also be in focus, with remarks expected from ECB’s Philip Lane and Frank Elderson McCaul, as well as the Fed’s Michelle Bowman and BoE’s Andrew Bailey and Catherine Mann.