Stocks & Equities

European markets are in the green this morning, with broad-based gains across the region’s major indices. The Nasdaq is leading the charge in the U.S., driven by Apple (AAPL) surging 3.5% in pre-market trading. The boost comes after the tech giant reported strong growth in its services segment, reinforcing investor confidence despite broader macroeconomic uncertainties.

Currency Markets

The U.S. dollar (USD) is mixed against its major counterparts as traders position ahead of the key Core PCE data—the Fed’s preferred inflation gauge. The Japanese yen (JPY) is underperforming, reflecting a weaker sentiment amid shifting rate expectations.

Fixed Income & Bonds

Bond markets are responding to cooler-than-expected German state CPI data, leading to a bounce in fixed-income benchmarks. German Bunds are outperforming, as investors reassess European inflation trends and potential ECB policy moves.

Commodities & Oil

Crude oil prices initially climbed but have since pared gains as the market awaits updates from former U.S. President Donald Trump regarding potential tariffs on Canadian and Mexican oil. Any announcement could have significant implications for North American energy markets.

Key Events to Watch

Looking ahead, investors will be monitoring a packed economic calendar, including:

• German CPI – A key inflation reading for Europe.
• U.S. Core PCE & Employment Costs – Critical for gauging the Fed’s next move.
• Canadian GDP (Q4) – A snapshot of Canada’s economic health.
• German Credit Rating Update – A potential risk factor for European markets.
• Fed Commentary – Remarks from Federal Reserve Governor Michelle Bowman could provide insights into future policy direction.

Corporate Earnings on Deck

Several major earnings reports are due today, with results expected from:

• ExxonMobil (XOM)
• AbbVie (ABBV)
• Colgate-Palmolive (CL)
• LyondellBasell (LYB)
• Phillips 66 (PSX)

These reports could provide further market catalysts, particularly in the energy and healthcare sectors.