Markets Turn Cautious as SpaceX and GM Earnings Loom; Dollar and Oil Strengthen

Financial markets remain in neutral sentiment territory, with the most significant moves concentrated in the technology sector. Investors are closely monitoring the delicate situation in France and the worrying signals emerging from the Gulf. Oil and the US dollar have climbed back above the 60-point score threshold, while technology stocks, despite heightened activity, remain below 50. Markets are awaiting earnings reports from SpaceX, Netflix, General Motors and 3M, companies representing distinct sectors of the economy. Futures point to a negative open in Europe and a broadly flat start in the United States.

Financial markets sentiment

Financial markets are showing neutral sentiment today. Intermarket analysis indicates a Market Health Score of 61/100. Risk appetite remains weak. The S&P 500/VIX ratio remains below its long-term moving average, while the recovery in technology stocks has brought the S&P 500/Nasdaq ratio closer to its long-term average. Other intermarket ratios remain broadly stable.

At the asset-class level, we continue to monitor movements in global bonds. The medium-term moving average remains a key indicator in assessing whether a sustained recovery in bond prices is within reach. So far, the first attempt to test this level has failed. Global equities remain range-bound and below their medium-term moving average. Commodities are stable.

Our market weather map continues to point to neutral conditions across equity markets, with technology and Asian equities both remaining below a score of 50. The US dollar and oil have moved back towards the 60-point area, halting the recovery in gold and bonds, with the latter holding firm around the 50-point mark.

On a weekly basis, the S&P 500 technology sector, Growth stocks and copper are leading the declines in score. On the other hand, US regional banks stand out for their recovery towards the 50-point threshold.

Global Futures – Pre-Market Sentiment

Pre-Market Futures: Global futures point to a risk-off sentiment, with an average decline of 0.59%. US futures are slightly positive (+0.05%), European futures are sharply lower (-1.12%), and Asian futures are slightly negative (-0.13%).