Markets eye Trump’s shift in tone

US Markets

US Treasury yields slipped across the curve, with the 30-year yield easing to around 4.80%, reflecting renewed demand for longer-dated debt. The move follows signals from President Trump suggesting a less combative approach toward the Federal Reserve. While Trump maintained pressure for faster interest rate cuts, he publicly ruled out removing Fed Chair Jerome Powell, a departure from prior threats that had unsettled markets.

The US dollar advanced modestly against a basket of peers. The uptick came amid cautious optimism and lingering expectations that the Fed may still pivot dovishly under political and economic pressure.

Markets have become increasingly reactive to political soundbites, the macro calendar reasserts itself today with the release of April’s preliminary PMI reports from the US, Eurozone, UK, and Germany. These figures are expected to offer the first real insight into business sentiment following recent trade turbulence and policy uncertainties.

Commodities

Oil prices continued their upward trajectory early in the European session, supported by improving risk sentiment and potential supply concerns. West Texas Intermediate (WTI) rose to around $64.53 per barrel, while Brent crude advanced to $67.57. The build comes ahead of key US inventory data due later in the day, which could either reinforce or temper the rally.

Meanwhile, gold prices retreated from recent all-time highs, as risk appetite edged higher and haven demand moderated. While easing geopolitical tension is weighing on gold, its downside remains cushioned by continued speculation around Fed policy easing and some hesitation from dollar bulls.