Markets are treading water this morning as investors brace for a busy day packed with geopolitical meetings, central bank announcements, and economic data releases.

At 11:45 EDT (16:45 BST), U.S. President Donald Trump is scheduled to meet with German Chancellor Friedrich Merz. The high-level meeting adds a geopolitical dimension to today’s agenda, and market participants will be watching closely for any signals on transatlantic economic or trade policy.

European Markets Open Steady, Lose Steam

European equity markets opened flat but gained modest momentum mid-morning. However, gains have since cooled, and indices are now trading off their session highs. The initial optimism helped underpin U.S. futures in early trading, although sentiment remains cautious as traders await clarity from central banks.

FX Markets Quiet, All Eyes on ECB

Currency markets are relatively subdued. The euro is trading in a tight range as traders wait for today’s European Central Bank (ECB) policy announcement. While no major policy shift is expected, the tone of the ECB’s communication—especially regarding inflation and future rate cuts—could influence currency and bond markets significantly.

Bond Yields Hold Near Session Lows

Government bond markets are broadly firm, with yields near their session lows. German Bunds are benefiting from strong demand at auctions in Spain and France, highlighting continued appetite for high-quality eurozone debt amid uncertain macroeconomic signals.

Commodities: Crude Stabilizes, Silver Pops

In commodities, crude oil prices have stabilized following sharp declines sparked by a bearish Saudi oil report. Meanwhile, spot silver is breaking higher, supported by technical momentum and safe-haven interest.

Key Data and Events Ahead

Investors are gearing up for a flurry of economic releases and central bank speakers:

• U.S. Data: Jobless Claims, Challenger Layoffs, International Trade
• Canada: Trade Balance
• Central Banks: ECB Policy Announcement, Bank of England Decision Maker Panel (DMP)
• Public Holidays: Danish markets closed
• Key Speakers: ECB President Christine Lagarde, BoE’s Greene, Fed officials Kugler, Harker, and Schmid, and Bank of Canada’s Kozicki
• Earnings Watch: Results due from Broadcom and DocuSign