Financial markets found some relief as tensions in the Middle East cooled, providing stability following Wall Street's worst week since 2022. S&P500 futures managed to hold above the key 5,000 level, with attention now turning to earnings season and growing skepticism regarding the possibility of a Federal Reserve interest rate cut this year.
While the US dollar index traded within a tight range, there are indications it may test the lower end soon.
Gold continued its recent downward trend, while US WTI oil appeared poised to challenge the support zone around $81.

Asia Pacific markets
Despite stern warnings from Japanese officials about potential intervention to support the yen, the dollar continued to strengthen, nearing 155 against the Japanese currency.
Bank of Japan Governor Kazuo Ueda indicated a willingness to raise rates if inflation trends towards the 2% target.

European markets
European markets saw a surprise return to expansionary territory for German businesses, boosting the euro and denting the dollar index, despite expectations of a possible European Central Bank rate cut in June.
Despite a manufacturing sector miss, overall British business performance exceeded expectations, lifting the sterling from recent lows.

American markets
With Fed officials observing a blackout period before their May 1 policy decision, futures pricing suggests reduced expectations for easing in 2024, with only an 80% chance of a quarter-point rate cut before the November election. Flash business readings for April will offer further insights, with key events including US March new home sales, Fed business surveys, and corporate earnings reports.
​​​​​​​Additionally, speeches from central bank officials and a visit by the US Secretary of State to China may influence market sentiment.