Markets remain unsettled, largely due to volatility stemming from ongoing geopolitical tensions. These tensions intensified following the downing of Iranian attack drones, prompting U.S. forces to launch new defensive strikes against an Iranian military site on Wednesday, according to U.S. officials.
In response, precious metals and cryptocurrencies continued their decline, whereas crude oil futures rebounded. The US Dollar Index (DXY) also extended its upward movement. Meanwhile, US stock futures were relatively stable on Thursday morning, as traders awaited key US economic data that could influence market expectations in the coming days.
Thursday's New York session is expected to be particularly eventful, with several high-volatility economic releases scheduled. Among these, the April Core PCE report stands out as a critical indicator, as it is the Federal Reserve’s preferred measure for monitoring inflation. Market participants will closely scrutinise this data to assess whether inflationary pressures persist.
In addition, the forthcoming release of the Q1 GDP figures, durable goods orders, and weekly jobless claims is expected to heighten anticipation, as these reports could influence the Federal Reserve’s outlook on interest rates and overall market sentiment. Collectively, these events are expected to influence the performance of equities, foreign exchange, metals, commodities, cryptocurrencies, and yields over the next two days.
Furthermore, end-of-month dynamics are contributing to increased market volatility. Investors are also paying close attention to ongoing US–Iran negotiations, which add another layer of uncertainty.
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