Yesterday’s session took a sharp and unexpected turn. Things were moving smoothly through the first half of the American session, but then sentiment collapsed. Indices nosedived, making new weekly lows in a dramatic fashion. The trigger? A spike in U.S. Treasury yields.
The yield on 30-year U.S. Treasury bonds surged past 5%, hitting the highest level since October 2023. The benchmark 10-year yield followed, reaching 4.59%, reigniting concerns about U.S. debt sustainability. The sudden surge in yields rattled equity markets and erased earlier gains, delivering a strong blow to risk appetite.
Friday opens in the red, with indices still under pressure. The big question today: will dip-buyers step in once again? They’ve been persistent throughout this year, but yesterday’s drop may test their resolve. The tone for the day may be set by how markets absorb this latest bout of volatility.
On the currency market, we’re seeing:
Over on the commodity front, gold is shining again, reflecting investor flight to safety. Gold’s move upward highlights the return of a risk-off mode. Oil, meanwhile, is trading mixed, moving sideways after recent volatility.
Today’s spotlight is on PMIs — the most important macro releases of the session. We'll get manufacturing and services PMIs from:
-
France
-
Germany
-
Eurozone
-
United Kingdom
-
United States
These data points will likely shape the intraday trend, especially if they show divergence in economic momentum or inflationary pressures across regions.
A special mention goes to Bitcoin, which continues to quietly climb, now trading above $111,000 — a new all-time high. What’s remarkable is that this rally is happening without major media attention, which often precedes healthier, more sustainable uptrends. In contrast, previous hype-driven surges tended to end in abrupt reversals. The current calm ascent bodes well for crypto bulls.
So, all eyes today on whether the equity markets can find their footing again — and whether the PMI data will offer a lifeline or deepen the pressure.