Friday Calm After the Storm: Markets Steady as Earnings Wrap Up

Hello traders, and welcome to Friday, the final trading day of the week — one that brings a light macro calendar but plenty of market-moving stories from both earnings reports and economic data. After a busy few sessions filled with central bank meetings and tech earnings, today’s session opens with a calmer tone, though there’s still a lot for traders to digest.

The day started in Asia, where inflation from Japan came in higher than expected at 2.8% vs. 2.6%, but despite the hotter print, the Japanese yen failed to strengthen — showing that investors remain focused on the Bank of Japan’s dovish stance rather than short-term data. Manufacturing PMI from China disappointed at 49, signaling ongoing contraction in the industrial sector and weighing slightly on Asian sentiment. In Europe, Eurozone’s Core CPI Flash Estimate surprised modestly to the upside at 2.4%, keeping the European Central Bank under mild pressure, while traders now await Canada’s GDP, expected at 0.0%, which could influence the Canadian dollar’s short-term direction.

On the earnings front, Thursday’s heavyweights did not disappoint. Apple, Amazon, Eli Lilly, and Mastercard all reported better-than-expected results, though market reactions varied. Apple is set to open about 2% higher, Amazon an impressive 12% higher, while Eli Lilly is more or less flat, and Mastercard, which reported before the market opened yesterday, finished unchanged after muted trading. Today, focus shifts to energy giants Exxon Mobil and Chevron, both of which will release results before the market opens — numbers that could set the tone for the oil sector and energy stocks heading into the weekend.

Turning to the markets, futures are mixed, with U.S. contracts slightly positive while European indices continue to struggle, unable to build on this week’s earlier gains. The sentiment remains cautiously optimistic in the U.S. but fragile in Europe, where inflation and weak PMI numbers continue to weigh. On the currency front, we can see weakness in the Antipodean currencies (AUD and NZD), as well as in the Canadian dollar and British pound, while the U.S. dollar remains resilient heading into the weekend.

Finally, on the commodities front, oil remains in a sideways trend, consolidating after its earlier rebound. More action can be seen in the metals market, where gold and silver attempted a bullish recovery on Thursday, especially silver, which showed strong intraday demand. Today, however, both metals are seeing minor corrections, moving sideways ahead of the weekly close. Still, if they manage to end the week on a positive note, that could set the stage for a larger bullish correction next week.

All in all, Friday is shaping up to be a calm yet important day, as traders digest the week’s flood of earnings, inflation, and rate cuts, while positioning for next week’s potential rebound or continuation trends.

Source: https://www.axiory.com/analytics/market-news/friday-calm-after-the-storm-markets-steady-as-earn