Indices Flash Red – Buyers Under Pressure After Failed Bounce

Markets are continuing their rollercoaster ride, and it seems the turbulence is far from over. Indices once again lured buyers in with a bounce, only to reverse sharply and deliver another wave of losses. As of this morning, American futures are down between 2% and 3%, while European futures are heading into the open with losses of 3% to 4%. The red board is back, and those who bought into the dip might now be under pressure to exit, which could trigger another leg lower in this sell-off.

From a macro perspective, the calendar has been relatively quiet, but overnight we had an interest rate decision from New Zealand. As expected, the RBNZ cut rates by 25 basis points. The reaction on NZD has been mildly negative, but nothing dramatic. The real anticipation today is around the FOMC meeting minutes, scheduled for release later in the U.S. session. Until then, the European calendar remains light, leaving traders to focus squarely on price action and geopolitics.

Speaking of geopolitics, trade tensions are escalating rapidly, particularly between the U.S. and China. With China showing no signs of backing down, markets are beginning to price in a full-blown trade war, adding yet another layer of risk.

In the currency space, we’re seeing a classic risk-off profile emerging. New Zealand and Australian dollars are under pressure, weighed down by the dovish central bank move and global growth concerns. On the flip side, safe havens like the Japanese Yen and the Euro are gaining traction. The U.S. Dollar, interestingly, is among the weakest performers this morning, joined by the Canadian Dollar, which is also struggling.

Turning to commodities, gold is showing signs of life, bouncing off key support at $2,980 and trying to mount a recovery. Other metals—silver, platinum, and palladium—are following suit, attempting to recover from recent losses. But the big story remains oil. Crude prices are under intense pressure again, sliding to new long-term lows, with a year-to-date drop of nearly 20%. That’s a remarkable decline, highlighting just how fragile global demand expectations are becoming.

So, to sum it up: it’s a critical moment for markets. Will buyers show up and defend current levels, or will this be the beginning of a deeper leg down? Volatility is high, sentiment is fragile, and technicals are stretched. Buckle up—today could be another wild one.

Source: https://www.axiory.com/analytics/market-news/indices-flash-red-buyers-under-pressure-after-fail