Wednesday kicks off with high volatility and a packed calendar. The action started in the Asian session with inflation data from Australia, which came in weaker than expected. As a result, the Australian dollar is the weakest major currency this morning.
We also received Germany's GDP, which landed in line with expectations — no surprises there. But this is just the beginning. Still to come today:
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U.S. GDP
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ADP non-farm employment change
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Interest rate decisions from both Canada and the U.S.
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FOMC statement and press conference
Markets are bracing for potential surprises, even though no rate changes are expected from either central bank. The focus will be on the tone of the statements and any guidance going forward.
The earnings calendar is just as packed. On Tuesday, we got reports from Visa, Procter & Gamble, AstraZeneca, Booking, and Boeing — all beating expectations. But the market’s reaction has been mixed. For instance, Visa is trading lower in pre-market,and Boeing dropped over 5%, despite solid earnings. So clearly, positive numbers aren’t enough without forward optimism.
Today’s earnings spotlight turns to Microsoft, Meta Platforms, and Qualcomm, all reporting after the market closes — a critical moment for tech sentiment.
On the index front, we’re starting Wednesday with a pullback, continuing the weakness from Tuesday’s late session. Whether this turns into something bigger will depend heavily on today's data and earnings. Despite the pullback, midterm sentiment remains bullish.
In FX, we’re seeing early strength in the Japanese yen, although it’s starting to fade slightly as Europe opens. Canadian and Australian dollars are under pressure.
Commodities are mixed. Oil stands out, rallying hard on Tuesday and hitting five-week highs — a strong move with positive momentum. Gold and silver are quieter, with silver stuck in a range and gold inching up modestly.