Wednesday Market Buzz: Earnings, Inflation, and U.S. GDP on the Horizon

Good morning, traders, and welcome to Wednesday! Today, we’re finally seeing a busy market with a packed economic calendar and key earnings releases, bringing excitement to trading.

In macro news, we’ve already seen Australian inflation come in lower than expected, sending the Australian dollar lower in a clear reaction to the data. Later today, Germany’s preliminary CPI will be released, providing insight into European inflation trends. From the U.S., we’ll get ADP non-farm employment change and advanced GDP data, with GDP expected at a strong 3%. Wrapping up the day’s economic events, Bank of Canada Governor Macklem is set to speak, potentially giving direction to the Canadian dollar.

The earnings calendar is equally lively, with big names reporting. Microsoft and Meta will reveal their earnings after market close, while Eli Lilly and Caterpillar report before the market opens. Yesterday’s earnings highlights included Google, which posted strong numbers and rose 6% in after-hours trading. Visa also exceeded expectations with a 2% after-hours rise. On the downside, AMD’s better-than-expected earnings were overshadowed by a reported 8% decline in after-hours trading. McDonald’s and Pfizer, reporting before the open, both beat expectations but saw red by the end of the session, indicating traders remain cautious even amid solid performance.

As for the markets, European indices are struggling this morning, while U.S. indices continue to push higher, reverting to a pattern we’ve observed over recent weeks. Commodities show an interesting split: precious metals continue their ascent, with gold reaching new all-time highs while silver follows positively, though at a slower pace. Oil, after a challenging start to the week, is attempting a minor recovery today, but the overall sentiment remains negative.

Source: https://www.axiory.com/analytics/market-news/wednesday-market-buzz-earnings-inflation-and-u-s-g