MARKET WRAPS

Watch For:

EU GDP; France CPI, GDP, consumer spending; U.K. Nationwide house price index; Germany GDP, unemployment, CPI data for Germany, Bavaria, Saxony, Hesse, North Rhine Westphalia, Baden-Wuerttemberg, Brandenburg; Italy GDP, CPI; trading updates from GSK, Banco Santander, Barclays, UBS, Caixabank, Credit Agricole, TotalEnergies, Airbus, Haleon, Stellantis, Volkswagen, Prada, Repsol, Mercedes-Benz Group, Smith & Nephew, Aker Solutions, Taylor Wimpey, Equinor, CRH, Glencore, abrdn, Anglo American, Deutsche Post, Iberdrola, DSM-Firmenich, Segro

Opening Call:

European stock futures were tracking slightly lower despite a broadly positive lead from Asian equities. U.S. Treasurys were little changed; the dollar edged higher. Oil futures and gold were lower.

Equities:

European stock futures edged lower early Wednesday ahead of big tech earnings.

Tuesday marked the end of the first 100 days of President Trump's second term, concluding the worst start for stocks of any presidential term in more than half a century.

The extreme volatility in the stock market over the past 100 days might be a healthy wake-up call for investors accustomed to double-digit gains over the past two years, said Callie Cox, chief market strategist at Ritholtz Wealth Management. "The initial shot always hurts the worst … but we have had a chance to prepare ourselves for what could be coming [after 100 days]. So in that perspective, I'm a little more encouraged for the days ahead," she added.

U.S. stock indexes turned higher Tuesday after U.S. Commerce Secretary Howard Lutnick said in a CNBC interview that he had reached a trade deal with an unnamed country. Treasury Secretary Scott Bessent said the U.S. is making progress on trade agreements with India, South Korea, and Japan.

Wednesday's calendar is heavy with corporate earnings from mega-cap companies such as Microsoft and Meta Platforms, and several economic data points in both Europe and the U.S. Economists don't expect the data to provide much insight into the wider economic outlook.

Forex:

The U.S. dollar was a tad higher early Wednesday ahead of several U.S. economic data. The Bureau of Economic Analysis will release its first estimate of the first quarter GDP. The agency will also release the March measure of the Federal Reserve's preferred inflation gauge, the personal consumption expenditures price index.

The dollar should continue to be "tossed around" by tariff developments, and any evidence of the damage already done to the U.S. economy is emerging in data, said ING analyst Francesco Pesole. "On balance, the risks are skewed to the downside for the dollar this week," Pesole said.

Bonds:

Supply of new euro corporate and financial bonds is expected to rise in May to around 100 billion euros as issuers make up for low issuance in April, Societe Generale's Yuan Valencia said.

Euro credit supply tends to rise in May and this year is no different, Valencia said, adding that credit supply is likely to average around 25 billion euros per week in May.

Energy:

Oil edged lower early Wednesday. The World Bank on Tuesday said commodity prices are poised to drop sharply this year and next as rising tariffs lead to a slowdown in the global economy.

Some of the largest declines are expected in energy prices, which are seen dropping by 17% this year and 6% in 2026, the World Bank said. Also, China's big three energy companies flagged slower demand for oil products and weaker crude prices in the world's second-largest economy.

Metals:

Gold consolidated in Asia, but may be weighed by signs of easing in the U.S. tariffs' impact.

Gold is constrained in the near term as rapidly changing conditions around global trade risks have tempered momentum, said Bas Kooijman, CEO and asset manager of DHF Capital.

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Copper fell amid USD strength. A stronger dollar is creating headwinds for the commodities markets, ANZ Research analysts said.

A stronger greenback makes it more expensive for international buyers to purchase dollar-denominated commodities like industrial metals. Markets also continue to be weighed down by concerns about the economic backdrop, they said.

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Iron ore prices were lower amid weak sentiment ahead of the Labor Day holiday. ANZ Research noted that Fortescue's iron ore shipments rose 6% in its fiscal 3Q while its peers BHP and Rio Tinto reported lower sales due to disruptions from cyclones. Data shows a modest increase in iron ore inventories at Chinese ports last week, ANZ Research analysts said.

Ahead of the Labor Day holiday, Chinese steel mills have slowed their restocking activities, they said.

Sources: MarketScreener