The European session opens today with clear signs of risk-on sentiment dominating the markets. But before diving into today’s action, let’s quickly recap what happened yesterday.
The FOMC meeting minutes, released on Wednesday, turned out to be a non-event. Markets barely reacted, as investors were clearly focused on something bigger: earnings from NVIDIA.
NVIDIA's earnings were released after the market close and beat expectations by a wide margin, instantly sparking a rally in global futures. In pre-market trading, NVIDIA shares are already up over 5%, and this strong performance is fueling optimism across the board.
As a result, indices are climbing higher, with bullish sentiment taking hold of the market early in the day.
Currency Market
In the FX world, safe havens are on the back foot. The Japanese Yen and Swiss Franc are both weakening, in line with the risk-on tone. In contrast, we’re seeing broad strength in risk and commodity-linked currencies: the US Dollar, Canadian Dollar, Australian Dollar, and New Zealand Dollar are all pushing higher during the Thursday morning session.
Commodities
The precious metals market is mixed. While gold is under heavy pressure — reflecting the waning demand for safety — industrial and semi-industrial metals such as copper, palladium, platinum, and silver are climbing, aligning with the positive economic outlook and risk appetite.
Oil is also experiencing a strong recovery, climbing sharply and potentially salvaging a positive week. This move adds further fuel to the risk-on environment and could be a turning point for crude sentiment this week.
What’s Next?
Still to come today on the macro calendar:
These events could inject additional volatility and either extend or temper the current upbeat tone.
For now, the market is embracing risk. Let's see if this momentum holds into the U.S. session.