US markets traded cautiously overnight as investors weighed geopolitical developments against evolving expectations for future interest rate policy. US equities finished modestly lower, while Treasury yields were mixed: shorter-dated yields retraced from recent highs and longer-dated yields moved higher, with the 30-year yield reaching levels last seen in 2002. The US dollar strengthened against its major peers, oil fell on reports of rising Middle East export volumes, and gold rebounded strongly after Monday’s sharp sell-off. Attention now turns to Australian CPI data and the release of the Fed’s preferred inflation gauge, Core PCE.
📊 Equities
US markets traded cautiously overnight as investors continued to weigh geopolitical developments alongside evolving expectations for future interest rate policy. US equities finished modestly lower, with the Dow, S&P 500 and Nasdaq falling 0.26%, 0.17% and 0.09% respectively.
🛢️ Oil
Crude oil declined following reports of increasing export volumes from the Middle East. Brent crude fell 2.58%, while WTI dropped 3.48%.
🥇 Gold
Gold rebounded strongly after Monday’s sharp sell-off, recovering back into its recent trading range. The metal gained 1.62% to $4,180.79.
💵 FX & Bonds
The US dollar strengthened against its major peers. Treasury yields were mixed, with shorter-dated yields retracing from recent highs and longer-dated yields extending their move higher. Notably, the 30-year Treasury yield reached levels last seen in 2002.
| Market | Change | Close |
|---|---|---|
| Dow | -0.26% | 51,349 |
| S&P 500 | -0.17% | 7,670 |
| Nasdaq | -0.09% | 26,797 |
| USD | +0.20% | 101.38 |
| US Treasury – 2 Year | -5.4 bps | 4.877% |
| US Treasury – 10 Year | – | 5.236% |
| Oil – Brent | -2.58% | $102.56 |
| Oil – WTI | -3.48% | $89.38 |
| Gold | +1.62% | $4,180.79 |
📌 Today’s Focus
Attention now turns to another busy economic calendar, highlighted by key Australian inflation data during the Asian session and the release of the Fed’s preferred inflation gauge, Core PCE, later in the US session.
🔹 Asian Session – 11.30 am – Australia – CPI Data
🔹 European Session – All Day – Germany – Preliminary CPI Data
🔹 US Session – All Day – Canada – Bank Holiday
🔹 US Session – 10.15 pm – US – ADP Non-Farm Employment Change Data
🔹 US Session – 10.30 pm – US – Core PCE Price Index Data
🔹 US Session – 10.30 pm – US – Final GDP Data