Mixed Performances and Key Data Awaited

Stock Market

Today's market wrap reveals a dynamic scene across global markets. In the Asia-Pacific region, indices displayed a mixed performance, with the Nikkei witnessing a decline while indices in China registered gains almost by 2%. Meanwhile, European indices commenced the day's trading with marginal changes, despite the positive momentum seen on Wall Street yesterday and the varied performance in Asia earlier today.

With most markets preparing for the upcoming holiday closure, today marks the final trading session ahead of the long weekend. This timing, coupled with the conclusion of Q1 2024, may prompt some market participants to adjust their positions, potentially influencing market sentiment.

Currency markets

EUR/USD encountered selling pressure, slipping below the key level of 1.0800 following disappointing Retail Sales data from Germany. This development underscores concerns about the health of the Eurozone's largest economy, compounded by speculation surrounding the Federal Reserve's stance on interest rate cuts amidst robust economic data and persistent inflationary pressures.

Despite the impending holiday, today holds significance due to the release of potentially market-moving economic data, including Initial Jobless Claims, US final Q4 GDP, and Canadian January GDP, among others. These data releases are anticipated to provide valuable insights into the economic landscape, shaping market sentiment before the holiday hiatus.

Gold

In addition to these market dynamics, gold prices maintained their upward momentum, hovering near $2,200 during Thursday's European session. The precious metal demonstrates resilience as investors await the publication of the United States core PCE Price Index data for February on Friday, a pivotal event that could influence gold's price trajectory in the near term.