American market
Wall Street opened cautiously as investors refrained from making aggressive moves ahead of the release of key economic data. Traders remained focused on upcoming US inflation data and labor market indicators, which are expected to provide strong signals about the Federal Reserve’s next policy move. In early trade, the S&P 500 was broadly flat, reflecting a lack of strong directional conviction, while the Nasdaq edged slightly lower, largely under pressure from profit-booking in major technology stocks following their recent gains.
Large-cap tech names saw mild selling as investors took profits, particularly in semiconductor and AI-related stocks, which have performed strongly in recent weeks. Meanwhile, the Dow Jones Industrial Average showed relative stability supported by defensive sectors such as health care and consumer staples.
In the commodities sector, oil prices rose on renewed concerns about supply following discussions in OPEC+ on a possible production adjustment. However, energy stocks did not fully reflect the rise in crude oil prices, as investors remained cautious about global demand growth and geopolitical risk. US bond yields remained steady, indicating traders are still waiting for clear signals before adjusting interest rate expectations.
European market
European stock markets fell slightly after the release of weaker-than-expected industrial production data from Germany, raising concerns about the region’s economic momentum. Major indices such as the DAX and CAC 40 faced less pressure due to weak performance of manufacturing and industrial stocks.
Despite broader weakness, the FTSE 100 showed relative resilience, supported by strength in energy, mining and selected financial stocks.
Asian market
Asian stock markets closed mixed as investors weighed regional economic developments and global cues. Japan’s Nikkei 225 advanced on the back of a weaker yen, which boosted exporter stocks, particularly in the auto and electronics sectors. The soft currency improved the earnings outlook for companies with strong foreign exposure.
In contrast, Hong Kong’s Hang Seng index fell on renewed concerns about China’s property sector. New reports highlighting financial stress among major Chinese property developers have raised fears of prolonged weakness in the sector, weighing on banking and property-related stocks. Mainland Chinese markets also saw limited gains as investors remained cautious despite recent policy support measures.
Investor Spirit
Global investor sentiment remains cautious, but cautious, as markets await key US inflation data later this week, which could significantly affect the Federal Reserve’s interest rate outlook. Traders are actively considering whether the Fed will maintain its dovish stance for an extended period or begin signaling a gradual easing cycle in 2026.
Volatility is expected to remain high in the near term, as investors balance easing global growth concerns against easing inflation trends. Until clear policy directions emerge from central banks, driven by data-driven movements and sector-specific developments, the market is likely to remain range-bound.