Updated: Morning Оverview of Upcoming Events and What to Expect

Today’s economic calendar includes several important events and upcoming macroeconomic releases. The day begins with a statement from Federal Reserve member Crosner, as well as the publication of the IEA’s monthly energy report.

A little later, Bank of England Governor Andrew Bailey will deliver a speech, and in Europe, the Eurogroup meetings will take place, which usually cover financial coordination and economic policies within the eurozone.

In the afternoon, the focus shifts to the U.S., where key labor market data will be released, including initial and continuing weekly jobless claims, as well as September trade data for exports, imports, and the overall trade balance. Canada will also release its trade balance for September. Later in the evening, the U.S. will announce the results of the 30-year Treasury auction and an update on the Federal Reserve’s balance sheet. The day will conclude with data from New Zealand, including the Business NZ PMI and monthly electronic card sales for November.

Link to the full calendar: https://calendar.varchevbrokers.com/calendar.php?lang=bg

Top 5 things to know before European markets open:

1. U.S. stock index futures are down along with Asian shares, as disappointing results from Oracle erased initial optimism following the Fed’s interest rate cut. Oracle shares fell over 10% in after-hours trading. SoftBank is also declining due to growing concerns over artificial intelligence costs.
2. Yields on U.S. government bonds continue to fall after the Fed meeting provided relief to bond market investors. The central bank announced that starting Friday it will purchase $40 billion in government securities per month. Japanese bonds also rose after strong demand for the 20-year issuance, the highest since 2020. Australian bonds jumped sharply following a surprisingly weak employment report.
3. In Mexico, lawmakers finalized new tariffs on Asian imports, which will take effect next year. The move aligns with U.S. efforts to strengthen trade barriers against China.
4. U.S. forces intercepted and seized a sanctioned oil tanker off the coast of Venezuela — an action that could seriously hinder the country’s crude exports. Oil futures remain almost unchanged, trading slightly above the previous session’s levels.
5. Microsoft will unveil a new artificial intelligence model that “will take agents to the next level,” said CEO Satya Nadella during an event in Bangalore, India.

European markets are expected to open around flat or slightly negative on Thursday, as investors assess the latest U.S. Federal Reserve interest rate decision and accompanying comments.

The FTSE in the U.K. is expected to start slightly below yesterday’s level, Germany’s DAX to fall about 0.3%, France’s CAC 40 to open unchanged, and Italy’s FTSE MIB to decline around 0.18%, according to IG data.

Global markets are reacting to the Fed’s third rate cut of the year, announced yesterday. The U.S. central bank reduced the federal funds range by 25 basis points to 3.5%–3.75%, while signaling that future cuts may be more challenging.

Fed Chair Jerome Powell stated at the post-meeting press conference that this rate cut places the bank in a comfortable position regarding interest rate levels.

“We are in a good position to wait and see how the economy develops,” Powell said, noting that the tariffs imposed by President Donald Trump have fueled inflation.

Powell’s term as chair is nearing its end, with only three meetings left before he steps aside for the candidate nominated by Trump.

Forex options expiring today:

Today there are significant option expiries at key levels for major currency pairs.

For EUR/USD, the significant strikes are 1.1800, 1.1710, and the largest volume at 1.1610 with over €4.5 billion.

For USD/JPY, the important levels are 158.00, 156.00, and 155.00, also with high nominal values.

There are also notable expiries for GBP/USD, USD/CHF, USD/CAD, AUD/USD, and EUR/GBP, each with hundreds of millions to billions in option positions. The data provides a picture of the concentrated option levels observed today.