Hello traders, and welcome to Wednesday’s session, where the market is waking up to a new set of macro and earnings developments that are already shaking things up. We started the day with inflation data from the UK, which came in lower than expected at 3.8% versus 4.0% forecasted, and that instantly triggered a sharp sell-off in the British Pound across the board. Sterling’s weakness was one of the dominant early-morning stories, as traders interpreted the softer inflation as a potential sign that the Bank of England may lean more dovish going forward.
Looking back at Tuesday, we saw significant movements driven by both inflation data and corporate earnings. Inflation in Canada came in higher than expected, which strengthened the Canadian dollar and gave it a bullish edge. On the earnings front, Netflix published its highly anticipated results after the market close. The streaming giant reported EPS below expectations, while revenue was in line. Investors clearly weren’t impressed — Netflix shares are set to open around 6% lower today, reflecting disappointment with both growth guidance and subscriber metrics. On the positive side, GE Aerospace and Coca-Cola delivered better-than-expected results ahead of the market open, with Coca-Cola gaining 4% and GE Aerospace adding 1.3% during Tuesday’s session.
However, the biggest story of the day yesterday wasn’t on Wall Street — it was on the commodities market, where precious metals suffered a brutal sell-off. Gold plunged nearly 6%, marking one of the steepest single-day declines in months. Silver dropped 7%, platinum 8%, and palladium 6.6% — an all-out collapse in the metals complex. Many analysts are calling it the first real sign that the gold bubble may finally be bursting. Whether this is just a deep correction or the start of a larger unwinding remains to be seen, but the emotional shake-up among late buyers is undeniable. Today, metals are attempting a modest rebound, but sentiment remains fragile, and volatility is expected to stay high.
Elsewhere, oil is trying to stage a recovery from local lows, extending small gains from yesterday. On the currency market, we see broad strength in the Canadian dollar and European currencies, with the exception of the British Pound. Antipodean currencies (AUD and NZD) are also gaining traction, while the Japanese Yen continues to weaken, reflecting a broader risk-on environment. Meanwhile, indices are trading with optimism — futures are flashing green and continue to build on the bullish momentum that started earlier this week.
Finally, let’s talk cryptocurrencies, which had a wild ride on Tuesday. Bitcoin surged sharply late in the European session, hinting at a potential breakout, only to erase all of those gains overnight during the U.S. and Asian sessions. That kind of movement — often called a liquidity sweep — could signal that larger players are shaking out weaker hands before a potential deeper decline. For now, cryptos remain under pressure.
The spotlight today, however, will be on Tesla, which reports earnings after the market close. With markets buzzing from the metals crash, dollar strength, and Netflix disappointment, Tesla’s results could easily set the tone for Thursday’s trading session. Traders should brace for volatility — Wednesday is shaping up to be a critical day across multiple asset classes.