Markets await Q1 2024 GDP reports from Eurozone

Asian Markets

Across the Asia region, market indices are maintaining a modestly positive stance, with a slight upward trend prevailing. Chinese markets, however, are witnessing a mixed session following recent significant gains. There's a prevailing caution among investors, particularly among dip buyers, who are wary of overextending themselves and potentially eliciting intervention from the Japanese authorities, as seen previously. This caution is reflected in the reluctance to push past the 157 mark on USDJPY at the moment. However, barring any significant shifts in sentiment stemming from US economic data and Federal Reserve announcements this week, it's likely that buyers will continue cautiously testing the waters, awaiting responses from the Bank of Japan and Ministry of Finance.

European markets

Today brings several GDP reports for the first quarter of 2024 from individual Eurozone countries. Projections suggest moderate figures, with expectations set at 0.2% year-on-year and 0.1% quarter-on-quarter for the Eurozone. In the latter part of the day, attention will be on the earnings reports of key companies from Wall Street.

Commodities

the price of gold encountered selling pressure on Tuesday, influenced by renewed USD strength. However, a softer risk sentiment in the market could temper deeper declines, particularly with significant events and data releases on the horizon. Traders are eagerly awaiting the outcome of the FOMC meeting and key US economic data before making substantial directional moves.

Oil prices continued their downward trend for the third consecutive day. This decline can be attributed to increasing speculation surrounding potential delays in rate cuts and hawkish remarks from the Federal Reserve, while the possibility of a successful ceasefire negotiation could potentially alleviate some of the geopolitical risk premium that has been factored into Oil prices.