Services PMIs and Geopolitics Drive Market Volatility
Investors are closely monitoring services sector data, a critical driver of global economic growth. The Asian session started quietly, with Japan's consumer confidence index slightly exceeding expectations at 35.4 points, while Australia and New Zealand reported mixed inflation and commodity price indicators. The euro remains under pressure, with EURUSD nearing 1.1170, amid geopolitical tensions, including Russian attacks in Odesa and Iranian threats.
The day's key volatility drivers include the US ISM Services index, set to release at 4:00 PM CET, which will influence expectations around Federal Reserve policy adjustments. China's bank holiday is limiting liquidity in Asian markets.
Key economic releases include Services PMI data from Spain, Germany, Italy, France, and the Eurozone, along with the US Final Services PMI and ISM Services Index. The Sentix Investor Confidence Index for the Eurozone and the Producer Price Index are also in focus.
Markets to watch include EURUSD, crude oil (WTI/Brent), and US and German government bonds. Brent crude is trading around $101.70, correcting after failing to break resistance in the $110-114 range, but remains bullish above its moving averages. Technical support lies at $94.8, with a potential deeper correction toward $90 if this level is breached.