Hello traders, and welcome to a new trading week. Monday kicks off with notable market moves, largely driven by developments that unfolded just before the Friday close.
Late Friday, markets were caught off guard by a U.S. credit rating downgrade, announced right before the close when liquidity and volatility were already fading. The timing of the announcement raised eyebrows and injected fresh uncertainty into global markets to start the week.
As a result, indices opened lower across the board. We’re seeing red on both European and U.S. futures, confirming a clear risk-off mood to begin Monday.
On the currency front, safe haven flows dominate. The Japanese Yen is gaining against most major currencies, while the American Dollar and Canadian Dollar are both under pressure. The Polish Zloty is also weaker, reacting to the outcome of the first round of presidential elections over the weekend.
In the commodities space, precious and industrial metals are seeing early strength. Gold, silver, platinum, palladium, and copper are all trading higher this morning, supported by risk aversion and a softer dollar. In contrast, oil is opening lower, continuing its struggle to regain upward momentum.
From a macro perspective, the calendar is relatively light today. We already had two key figures from China: industrial production came in above expectations, providing a small boost to sentiment, while retail sales disappointed, limiting the upside for risk assets.
Looking ahead, the week promises to be eventful, with several high-impact releases scheduled. Most notably, Thursday will bring PMI data from leading global economies, a key measure of economic momentum that could set the tone for broader market direction.