Markets remain in a cautious yet slightly optimistic mode as investors await key economic data, central bank commentary, and geopolitical developments. Here’s a breakdown of the latest market-moving events.

Trump on Tariffs: “We’ll See”

When asked about potential reciprocal tariffs, former US President Donald Trump responded with a noncommittal “We’ll see.” The uncertainty surrounding trade policy continues to loom over markets, keeping investors on edge as they assess potential impacts on global trade.

Stocks Hold Gains Ahead of CPI; US Futures Mixed

European equities are maintaining an upward bias, with investors awaiting the US Consumer Price Index (CPI) data. However, optimism remains somewhat capped due to ongoing concerns about tariffs. Meanwhile, US stock futures are showing a mixed picture as traders weigh inflation expectations against broader market sentiment.

USD Steady, JPY Struggles

The US dollar remains stable ahead of the inflation report, while the Japanese yen is under pressure due to the yield environment. Higher yields continue to dampen demand for the yen as investors seek better returns elsewhere.

Bonds: US Treasuries Steady, German Yields Climb

The bond market is seeing US Treasuries trade steady ahead of CPI, while German yields are marching higher, reflecting diverging economic and monetary policy expectations.

Crude Oil Slips on Inventory Build

Oil prices are slightly lower following a surprise build in headline crude stockpiles. However, reports suggest “some optimism” regarding Middle Eastern talks, which could help stabilize energy markets if a resolution is reached.

Key Events to Watch

The trading day is packed with major catalysts, including:
🔹 US CPI Report – A key inflation gauge that could influence Federal Reserve policy.
🔹 OPEC Monthly Oil Market Report (MOMR) – Insights into oil supply and demand trends.
🔹 Bank of Canada (BoC) Minutes – Further clues on Canadian monetary policy.
🔹 Central Bank Speakers – Fed Chair Jerome Powell, alongside Bostic, Waller, and BoE’s Greene, could provide important policy guidance.
🔹 Government Debt Supply – Bond auctions from the UK, Germany, and the US.
🔹 Earnings Reports – Notable releases from Vertiv, CVS, Barrick Gold, Biogen, and Reddit.

With so many market-moving events on the horizon, volatility could pick up as investors digest economic data, central bank commentary, and geopolitical headlines. Stay tuned for further updates.