As the trading week winds down, European stock markets are seeing red, though investor sentiment has rebounded slightly from earlier lows. Meanwhile, US futures, particularly the S&P 500 (ES) and Nasdaq 100 (NQ), are showing gains ahead of the highly anticipated Personal Consumption Expenditures (PCE) report, a key measure of inflation.

Dollar Strengthens Amid Trade Concerns

The US dollar remains firm as global trade tensions continue to weigh on markets. Risk-sensitive currencies, including the Australian and New Zealand dollars, are under pressure as cautious sentiment prevails. With ongoing uncertainty surrounding trade policies, investors are seeking safety in the greenback, keeping it well-supported.

Bond Markets React to Tariff and Tech Pressures

In the bond market, demand for safe-haven assets surged following fresh tariff-related comments from former President Donald Trump, as well as growing regulatory pressure on the tech sector. However, despite an initial rally, bond yields have edged higher as the session progresses, indicating that risk aversion may be easing slightly.

Commodities Face Pressure Amid Month-End Flows

Commodities are trading lower, influenced by month-end positioning and caution ahead of the weekend. Uncertainty over potential geopolitical developments and macroeconomic data releases is prompting traders to reduce exposure, leading to declines in key commodity markets.

As investors brace for the upcoming US PCE data, market participants remain on edge, balancing risk appetite with defensive positioning. Stay tuned for further updates as the trading landscape evolves.