Markets Digest Fed, Earnings, and Fresh Data

Thursday trading picks up right after a very eventful Wednesday.

As expected, both the Federal Reserve and the Bank of Canada left interest rates unchanged. The key takeaway from the Fed side is that Jerome Powell stayed firm despite pressure from Donald Trump, signaling no rush to cut rates.

Beyond central banks, earnings were a major driver.

Tech giants Alphabet, Microsoft, Amazon, and Meta Platforms all reported results above expectations. Still, market reactions were mixed. Alphabet and Amazon are trading higher after hours, while Microsoft and especially Meta are under pressure, with Meta dropping sharply.

Thursday doesn’t slow down.

We have interest rate decisions from the Bank of England and the European Central Bank, with no changes expected. On top of that, key macro data includes GDP from both Canada and the US, along with the Core PCE Price Index and the Employment Cost Index.

Markets are reacting accordingly.

Indices were volatile yesterday, and today we see mixed behavior. The Asian session brought a slight pullback, while the start of the European session shows a recovery attempt.

On currencies, we see strength in antipodean and European currencies, along with a stronger Canadian dollar, while the US dollar remains relatively flat.

In commodities, oil continues to stand out. WTI crude oil surged above $110 yesterday, reflecting ongoing geopolitical and supply concerns. Metals like gold and silver dropped earlier but are now attempting a rebound.

Cryptocurrencies are showing weakness. Bitcoin failed to hold near $80,000 and is now on its third consecutive bearish day, with only a modest bounce so far.

Finally, one of the standout moves is on the yen. The Japanese yen is clearly weaker, which is pushing yen pairs higher at the start of the European session.

Overall, the market remains highly active, with multiple drivers in play, from central banks to earnings to macro data.

Source: https://www.axiory.com/analytics/market-news/markets-digest-fed-earnings-and-fresh-data