U.S. futures are currently steady as markets eagerly anticipate the speech by Fed Chair Powell and the release of Micron’s earnings results. Gold has reached a new record high, while European and Japanese markets are showing mixed signals.

The financial markets of the United States are currently in a state of stagnation, with futures trading remaining consistent as investors await a speech from Federal Reserve Chair Jerome Powell and key economic data. It is anticipated that Powell’s remarks will offer further insight into the Fed’s dovish stance in the wake of last week’s interest rate reduction. Market sentiment is also being influenced by the release of flash Purchasing Managers’ Index (PMI) data, a key early indicator of economic activity. The technology sector is currently focused on the imminent earnings report from Micron. This will provide an update on the health of the AI, memory and semiconductor industries. In the broader market, gold has reached a new record high, reflecting investor expectations for further Fed easing. A continued drop in oil prices is seen as a tailwind for growth stocks but a headwind for the energy sector.

In Europe, flash PMI data for Germany and the Eurozone are setting the tone for the trading day. While manufacturing appears to be stabilising, the services sector remains soft, creating a mixed picture for the region’s economic recovery. This data is being analysed in conjunction with the recent decline in oil prices, which has led to a reduction in input costs for businesses.

Meanwhile, the cash market in Tokyo is closed for a public holiday, but derivatives trading continues. The weaker yen, trading at around 147.8 against the dollar, is a supportive factor for Japanese exporters, and the market is displaying a mixed regional tone, with some Asian markets, such as Korea and Taiwan, showing strength due to AI-related optimism, while others remain softer.