Markets began Tuesday on uncertain footing, with a mixed open giving way to a downward bias as risk sentiment weakens across the board. Investors are parsing geopolitical developments, central bank commentary, and upcoming corporate earnings as they reassess their positioning.

In a recent Fox interview, White House economic adviser Kevin Hassett revealed that the Trump administration has more than 20–25 trade or economic deals in progress. According to Hassett, President Trump is expected to announce the next deal upon his return, signaling potential policy catalysts on the horizon.

Currency and Bond Markets Reflect Growing Caution

The U.S. dollar index (DXY) came under pressure, touching a fresh week-to-date low. The Japanese yen emerged as the lead gainer among major currencies, benefiting from the broader risk-off tone. This movement suggests that markets are shifting toward safer assets as uncertainty mounts.

Bonds also reflected this flight to safety. Yields dipped, and German Bunds experienced modest gains following a well-received auction. The broader fixed-income market maintains an upward bias as risk appetite continues to deteriorate.

Crude Edges Lower Despite Weaker Dollar

Commodities failed to catch a bid from the softer U.S. dollar, with crude oil retreating slightly as President Trump spoke in Saudi Arabia. Despite the supportive backdrop from FX markets, energy prices remained under pressure—possibly reflecting skepticism around demand outlooks or geopolitical tensions.

Eyes on OPEC and Central Bank Speakers

Looking ahead, markets will closely monitor the latest OPEC Monthly Oil Market Report (MOMR), which could offer further insight into the group’s production outlook and demand forecasts. On the central bank front, remarks are expected from ECB’s Cipollone, as well as Fed officials Jefferson and Daly—each of whom could provide clues about future monetary policy moves.

Earnings season also continues, with key results from Cisco Systems and CoreWeave on deck. These reports could offer more color on the health of the tech sector amid macro headwinds.

With a blend of geopolitical developments, macroeconomic signals, and corporate earnings in play, markets are treading carefully. While optimism around future deals may provide medium-term support, today’s tone remains defensive as investors seek clarity.