European markets are enjoying another day of gains

European markets are enjoying another day of gains, following on from yesterday’s rally that saw indices across the region moving higher. Today’s outlier comes in the form of the FTSE 100, with the UK index losing early bullish momentum that sought to build on yesterday’s 1.2% rise. One area of strength has come from the miners, with the rally seen across the metals space bringing upside for Anglo American, Antofagasta, Fresnillo and Endeavour after yesterday’s pullback. This comes thanks to a pop for the high momentum metals that had been hit hard by the nomination of Kevin Warsh, with gold now trading roughly 12% higher than yesterday’s low of $4400. Meanwhile, silver is a whopping 21% up from its low of $71. Notably, traders hoping for a recovery of those recent declines are faced with the reality of the fact that a 21% decline in gold requires roughly a 27% rally to regain its highs. 

The RBA kicked off the week’s trio of central bank announcements, with the bank hiking rates by 25 basis points as expected. The sharp gains seen for the Australian dollar however represent a more hawkish meeting than many had anticipated, much of which scented around the latest inflation expectations. The increased forecast for Australian CPI saw the June 2026 figure revised up from 3.7% to 4.2%, highlighting the growing concerns that many believe will push the bank to tighten again. With that in mind, markets are now pricing a 67% chance that the RBA will hike again in May, standing in stark contrast to the recent narrative that the next potential hike might come in August, if ever. 

The latest US government shutdown looks to provide yet another bout of disruption to the economic calendar for traders and investors alike, with today’s JOLTS job openings release being postponed. However, perhaps more importantly, the BLS have also announced that they will not be releasing the January jobs report on Friday as a result of the shutdown. Crucially, Trump has stated that Congress are closing in on a resolution that would lift this partial shutdown. Nonetheless, the absence of the US jobs report shifts the focus solely onto earnings for US traders, with the likes of AMD, Merck, PepsiCo, Amgen, Pfizer, and PayPal stepping up today. This comes off the back of yesterday’s bumper report from Palantir, with the AI-led defence giant rising over 10% in pre-market trade today. The rampant growth of both government and commercial business contracts highlights their ability to permeate throughout the US economy, providing software solutions that help develop AI advances that should ensure a strong degree of stickiness for future business.