Mixed sentiment across global markets

The Asian trading session saw a mix of optimism and caution. Futures point to a subdued opening in the European markets, with investors eyeing key economic data. In the U.S., the spotlight remains on labor market indicators and service sector data to gauge economic resilience.

Key Central Bank Updates

In Japan, Finance Minister Katsunobu Kato expressed concerns over speculative yen selling as USD/JPY edged toward 158.40, nearing intervention levels seen last July.

Meanwhile, Michael Barr, the Federal Reserve's chief regulator, announced his resignation effective February 28, surprising markets and potentially sidestepping a legal clash with incoming political leadership.

Focus on Economic Data

Investors are closely monitoring today’s CPI form France and the Eurozone, alongside U.S. services PMI and JOLTS job data. These indicators will likely shape near-term market sentiment and policy expectations.

Commodities Update

• Precious Metals: Gold advanced 0.36% in early trading, reaching $2,646 per ounce, while silver climbed 0.65%. Geopolitical risks and a weaker U.S. dollar provided support for the safe-haven metals.
• Energy Markets: Natural gas prices retreated nearly 2.5% despite a sharp rally earlier this week, driven by colder U.S. weather forecasts. WTI crude slipped for a second consecutive session, trading around $72.90 per barrel, weighed down by bearish sentiment despite OPEC’s production cuts and increased energy demand from colder weather and China’s stimulus efforts.

Currencies

The Australian and New Zealand dollars emerged as the best-performing currencies in the session, supported by robust risk appetite. Conversely, the yen and U.S. dollar struggled, weighed down by shifting sentiment and speculation-driven moves.