Markets Hold Risk-On Bias Amid Directionless Trading; European Equities Outperform U.S., Oil Extends Decline

Pending further developments in the U.S.-Iran negotiations and ahead of the release of U.S. PCE inflation data next Thursday, financial markets continue the week with limited directional conviction while maintaining an overall risk-on sentiment.

Investors remain primarily focused on the technology sector, although signs of movement are beginning to emerge across other sectors, both cyclical and defensive. European equities have overtaken North American equities in our Health Scores, while the outlook for both oil and gold has deteriorated. Futures point to a negative opening in the United States and a slightly weaker start in Europe.

Financial markets sentiment

Financial markets are currently displaying a neutral to moderately positive sentiment. Intermarket analysis shows a Market Health Score of 41/100 (neutral).

Market conditions remain largely directionless. Risk appetite indicators continue to hold steady within risk-on territory, while the weakness in gold has had only a limited impact on both the Oil/Gold and Dollar/Gold ratios. Both indicators remain below their respective 200-day moving averages. Movements in the Commodities/Bonds ratio have also become more subdued as investors await Thursday’s U.S. PCE inflation report.

Across asset classes, commodities continue to trend lower, while global equities remain firmly in positive territory. Fixed income is losing momentum but continues to trade above its medium-term moving average.

Looking at our market weather map, several noteworthy developments have emerged. European equities have surpassed U.S. equities, with the main European index posting the strongest momentum score among the major markets. In U.S. equities, both the S&P 500 and the primary Canadian equity index have slipped below the 50-point threshold. Oil continues to lose ground and has fallen below the 40-point level. Three asset classes—gold, oil, and cryptocurrencies—are currently displaying negative directional strength.

Global Futures – Pre-Market Sentiment

Pre-Market Futures. Global futures indicate a moderate risk-off sentiment, with an average decline of 0.38%. U.S. futures are down 0.60%, European futures are slightly negative at -0.22%, and Asian futures are down 0.57%.

Macroeconomic calendar

On the macroeconomic front, today’s focus will be on the release of the flash estimates of the June 2026 PMI surveys. These data will provide valuable insights into whether and how the energy crisis continues to affect the broader economy, as well as business expectations regarding demand and employment in the coming months.

Also on the agenda are the weekly ADP employment report for the U.S. labor market and the CBI Industrial Trends Orders Survey in the United Kingdom.

ACTIVATE YOUR 14-DAY FREE TRIAL NOW. CLICK HERE

Already a subscriber? Login here

NOTES AND WARNINGS

Data compiled by kbmeter.com. Analysis date: 23 June 2026 - 7:38 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.