Global Indices Under Pressure as DAX Leads Sell-Off

Hello traders, and welcome to Wednesday’s session.

Let’s begin with a quick recap of yesterday’s key events. The Reserve Bank of Australia held rates steady as expected, and the initial reaction on the Australian Dollar was rather muted. However, two important figures from the US came later in the day: the ISM Manufacturing PMI and JOLTs Job Openings—both of which came in below expectations. This helped shape the risk narrative we’re seeing play out in today’s market.

Starting with equities, Tuesday brought strong performance across American indices, continuing the broader recovery attempt. But that momentum is fading today. Wednesday opens with a more cautious tone, especially in Europe, where DAX is under notable pressure, showing signs of a sharp drop. The sentiment is clearly shifting, and global indices are facing a correction.

On the FX front, we’re seeing a surprising move. Australian and New Zealand Dollars are leading gains, even as broader risk sentiment weakens. This strength in commodity currencies contrasts with what we’d expect in a typical risk-off environment. Meanwhile, safe havens like the Japanese Yen and Swiss Franc are underperforming, which creates a clear divergence—safe-haven currencies are falling while equities are also down. That mismatch suggests that markets are not fully committed to the risk-off narrative, or that positioning may be unwinding in an unusual way.

In commodities, the rally in oil has finally paused, with a meaningful correction underway after several sessions of gains. On the other hand, metals remain strong, with precious and industrial metals climbing higher, reflecting continued demand and investor appetite despite growing macro uncertainty.

Looking at today’s economic calendar, the spotlight is on the ADP Non-Farm Employment Change from the US, which will be closely watched ahead of Friday’s official NFP report. Later in the day, Donald Trump is expected to speak, and as always, markets will pay attention to any potential geopolitical or trade-related remarks that could spark volatility.

Stay cautious and watch key technical levels as sentiment remains fragile.

Source: https://www.axiory.com/analytics/market-news/global-indices-under-pressure-as-dax-leads-sell-of