Global markets are seeing a modest lift today following the rally seen in the previous session, as European bourses trade slightly higher and U.S. futures edge up, albeit with less momentum as investors take a breather. Key economic data releases and central bank meetings are in focus, setting the stage for potential volatility as the day unfolds.

European Stocks & U.S. Futures: Moderate Gains

European stocks are showing modest strength across the board, building on the positive sentiment from yesterday’s robust rally. U.S. futures are also slightly higher, but markets appear to be taking a measured approach as traders anticipate central bank decisions. The previous day’s strong performance is giving way to a cautious optimism, with investors keeping a close watch on upcoming announcements from both the Federal Reserve and the Bank of England (BoE).

Currency Markets: Dollar Eases, Antipodean Currencies Recover

The U.S. dollar has softened today, giving back some of its recent gains as global currency markets shift their attention to central bank policies and U.S. economic data. Notably, the Australian and New Zealand dollars (often referred to as Antipodeans) are outperforming as they attempt to recover from post-election losses. This is supported by resilience in the Chinese economy, which has helped boost sentiment for the commodity-linked Antipodean currencies.

Bond Markets: Treasuries Steady, German Bunds Underperform

U.S. Treasuries (USTs) are trading slightly firmer ahead of today’s Federal Open Market Committee (FOMC) meeting, where the Fed’s guidance on interest rates will be closely scrutinized. However, German Bunds are the clear underperformers in the bond space, as political tensions rise after the collapse of Germany’s coalition government. This political uncertainty has introduced additional headwinds for the Eurozone’s largest economy, making Bunds less attractive to investors.

Commodities: Oil Pares Gains, Gold & Base Metals Supported

In commodities, crude oil prices are modestly weaker, giving up some of yesterday’s gains as the market digests recent supply and demand dynamics. Meanwhile, gold (XAU) is benefiting from the softer U.S. dollar, making the precious metal more appealing to global buyers. Base metals, such as copper and aluminum, are also seeing positive price action, supported by optimistic overnight trading in China as investors respond to encouraging economic signals from the world’s largest metal consumer.

Key Economic Events Ahead

Markets are bracing for a busy day with several key economic reports and policy updates on the agenda. In the U.S., initial jobless claims and wholesale inventory data are set to provide fresh insights into the health of the labor market and supply chain status. Investors will also be closely following the BoE and Fed policy announcements, where both central banks’ stances on interest rates and economic forecasts will play a critical role in shaping near-term market movements.

Adding to the intrigue, prominent policymakers are scheduled to speak, including ECB’s Philip Lane, Isabel Schnabel, and Frank Elderson, as well as BoE Governor Andrew Bailey and Fed Chair Jerome Powell. Their comments could provide valuable clues regarding the future of monetary policy in both Europe and the United States.

Earnings Reports: Key Corporations Set to Announce Results

It’s also a busy day on the earnings front, with major corporations across sectors reporting quarterly results. Some of the big names to watch include:

• PG&E Corp and Duke Energy Corp (utilities),
• Becton Dickinson and Co and Moderna Inc (healthcare),
• Air Products and Chemicals Inc and EOG Resources Inc (energy and materials),
• Arista Networks Inc and Motorola Solutions Inc (technology),
• Airbnb Inc and Fortinet Inc (consumer and technology),
• Trade Desk Inc and Warner Bros Discovery Inc (entertainment and media).

With corporations spanning energy, tech, healthcare, and entertainment, today’s earnings reports will provide deeper insights into individual sector performance and broader consumer trends.

Markets are in a cautious but optimistic mode as key economic events and earnings reports loom. European stocks and U.S. futures are seeing modest gains, while the dollar’s pullback has provided some support for other currencies and precious metals. All eyes are on the Fed and BoE policy announcements, which are likely to set the tone for trading in the days ahead.