Anna 
Global markets remained on edge as geopolitical tensions escalated on Thursday, leading to safe-haven assets dominating the market. Investors are closely monitoring developments, with concerns about the impact of ongoing conflicts on the global economy. Key events and data releases are shaping market sentiment:
European Central Bank (ECB) Policy Decision: The ECB is set to announce its monetary policy decision later today. Investors are eagerly awaiting any updates or changes in the central bank’s stance. President Christine Lagarde is expected to deliver a speech on the policy outlook and answer questions, providing insights into the ECB’s approach.
U.S. Economic Calendar: The U.S. economic calendar includes significant releases, including preliminary third-quarter gross domestic product (GDP) readings, September durable goods orders, and the latest initial jobless claims data. These indicators will offer valuable insights into the health of the U.S. economy.
Geopolitical Tensions in the Middle East: Escalating tensions in the Middle East have added to market uncertainty. Israel has increased air strikes in Gaza, with Prime Minister Benjamin Netanyahu indicating that the strikes are “just the beginning” and that preparations for a potential ground invasion are underway. This situation has contributed to a risk-off sentiment in the markets.
Market Reactions: U.S. stock futures have declined, with losses ranging from 0.3% to 1.25% on the day, reflecting investor concerns over geopolitical developments. The safe-haven U.S. dollar remains strong, maintaining its position above 106.50 on the dollar index. Additionally, the benchmark 10-year Treasury yield is holding above 4.9%, reflecting ongoing interest rate dynamics.
U.S. Economic Growth: The U.S. economy is anticipated to have grown by 4.2% year-on-year in the third quarter. These GDP readings will offer insights into the pace of economic recovery in the United States.
Geopolitical tensions and economic data releases continue to shape market sentiment, with investors closely monitoring developments in an uncertain global environment.
