Markets began the new month flat due to Labour Day closures across Europe and Asia

Global markets started the new trading month broadly flat as Labour Day holidays affected market participation across Europe and Asia. On May 1, 2026, several major markets and exchanges were closed, reducing liquidity and trading volumes. However, US markets remained open since their Labor Day falls in September. Additionally, a lack of major economic data kept some traders on the sidelines, with the Asian and European economic calendars expected to remain quiet throughout the day.

Volatility spiked in the previous session

Global markets closed notably higher on the final trading day of the month, with stocks, cryptocurrencies, and gold all posting gains. Positive sentiment was driven by better-than-expected economic data and strong corporate earnings, which helped offset ongoing geopolitical concerns.

Meanwhile, crude oil prices and the US dollar retreated from recent highs despite persistent tensions in the Middle East. The Japanese Yen experienced heightened volatility following intervention by the Bank of Japan, which drove it sharply higher.

What to watch in markets today?

The most crucial event for the markets today is definitely the release of the US ISM PMI numbers. The US ISM and S&P Manufacturing PMI figures for April are scheduled for release during the American session. PMI is a crucial leading indicator of sectoral activity and production health, influencing inflation expectations and interest rate outlooks. In March, the ISM Manufacturing PMI rose to 52.7, up 0.3 points and marking the highest reading since August 2022.

Investors should also monitor geopolitical developments closely amid dimming prospects for a US-Iran peace deal. Alongside geopolitical headlines, market participants will be attentive to speeches from several central bank officials, as European policymakers have adopted a more hawkish stance this week, signaling concerns over renewed inflation pressures.

Conclusion: With crucial US manufacturing data due on a partial holiday Friday and geopolitical tensions showing no signs of abating, liquidity circumstances may considerably accentuate market moves.

Warning! This material is not intended as investment advice. Past performance data does not guarantee future returns. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction in securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.