Global financial markets started the day on a cautious note, with European bourses opening lower. However, as the session progressed, equities managed to pare losses, showing signs of resilience. Meanwhile, US futures remain modestly lower or flat, reflecting a wait-and-see approach from investors ahead of key economic data releases.

USD Steady as Markets Eye PPI Data

The US dollar is holding firm as market participants anticipate the latest Producer Price Index (PPI) metrics. The euro has shown brief signs of weakness, weighed down by mounting political tensions in Germany. Traders are closely watching developments within the German government, which could impact broader European market sentiment.

Bond Market Awaits Key Events

In the fixed income space, German Bunds are trading modestly lower as investors await a key Bundestag debate. Across the Atlantic, US Treasury yields are in focus as markets prepare for the PPI release and ongoing discussions surrounding a potential government shutdown. These factors are likely to shape the direction of bond markets in the near term.

Commodities: Gold Shines Amid Tariff Concerns

Industrial commodities are under pressure due to renewed concerns over tariffs, which could weigh on global trade and economic growth. However, in contrast, gold continues its ascent, inching closer to all-time highs. The precious metal remains a preferred safe-haven asset amid economic and political uncertainties.

As the trading day unfolds, investors will be keeping a close watch on economic indicators and geopolitical developments, which could drive further market volatility. Stay tuned for more updates on how these trends evolve.