Wednesday is shaping up to be the most important day of the week, with all eyes on NVIDIA’s earnings report scheduled for release after the U.S. market close. This single event is likely to spark a wave of volatility across the indices, especially in the tech-heavy NASDAQ, as traders brace for numbers that could set the tone for the next phase of the equity rally.
As we approach the European open, indices are trading mixed but generally positive, following a strong bullish session on Tuesday. The optimism, however, is not evenly spread. U.S. indices are leading the way higher, while the DAX continues to lag behind, struggling to keep pace with Wall Street’s momentum.
On the currency front, strength is visible in the U.S. dollar and Canadian dollar, while the Japanese yen weakened during the Asian session. However, as Europe comes online, the yen is clawing back some ground, particularly against the dollar. Meanwhile, the Australian dollar is in the spotlight after inflation data came in much hotter than expected at 2.8% versus the forecast of 2.3%. Unsurprisingly, the AUD is gaining traction on this beat.
Turning to commodities, the divergence is striking. Oil has erased most of its gains from the previous week in just three days, marking a sharp and decisive correction that highlights the pressure in energy markets. Gold, on the other hand, surged to new midterm highs yesterday, underscoring the safe-haven demand that contrasts sharply with oil’s bearish tone.