Markets opened Thursday with a cautious tone, as investors braced for key U.S. economic releases and monitored progress in trade discussions between Washington and Beijing. While Asian equities posted modest gains, U.S. and European markets struggled for direction, reflecting broader hesitation across global assets.
Equities: Traders Stay Defensive Ahead of U.S. Economic Reports
Futures for the S&P 500 and Nasdaq ticked lower in early trading, with sentiment weighed down by anticipation of upcoming U.S. retail sales and producer price index (PPI) data. European stocks were flat at the open, while Asia showed more resilience, supported by optimism around potential breakthroughs in U.S.-China trade talks. The absence of major earnings drivers kept price action muted.
Forex: EUR/USD Nears Key Resistance as Dollar Softens
The euro continued to gain ground against the U.S. dollar, with EUR/USD trading near 1.1236, approaching the resistance level at 1.1265. The dollar’s weakness follows softer-than-expected inflation data earlier this week, and traders now await PPI and retail figures for clearer direction. A break above resistance could signal further bullish momentum, but failure to hold could pull the pair back toward 1.0905 support.
Commodities: Gold Slips on Reduced Safe-Haven Demand
Gold prices declined to their lowest in over a month, currently trading below $3,200 per ounce. The pullback comes as risk appetite improves slightly, particularly with signs of easing U.S.-China tensions. Attention is now on today’s PPI data, which could renew inflation concerns. Technical analysis shows downside potential toward $3,135 unless the price reclaims $3,335 resistance in the near term.
Investor Outlook
With volatility subdued and key data releases on the horizon, traders are holding back from aggressive positioning. Market direction in the short term will likely depend on how today’s U.S. reports shape expectations around growth, inflation, and future Fed policy moves.
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