Global Markets on Edge Ahead of Central Bank Meetings and Earnings Reports

Oil prices hit seven-week lows amid a softened demand outlook, influenced by Chinese market worries and overshadowed by upcoming central bank meetings in the U.S. and Japan. Various commodities and markets experienced mixed performances as traders awaited major corporate earnings and potential shifts in global economic policies.

Oil prices plummeted to a seven-week low on Tuesday, driven by concerns over weak demand in China. As a result, other commodities, including copper and iron ore, also saw price reductions, while bond, currency, and stock markets remained cautious ahead of critical central bank meetings in the U.S. and Japan.

The S&P 500 stabilized after a recent downturn, and European futures edged slightly higher by 0.1%. Traders largely focused on forthcoming corporate earnings and potential adjustments in interest rates. Meanwhile, Japanese government bond yields edged lower while U.S. Treasury yields remained steady.

As markets await central bank decisions, the yen and euro experienced minor fluctuations, and Australian inflation data will be closely watched. Key financial reports from Microsoft and AMD are expected later in the day, adding to the market's anticipation.

(With inputs from agencies.)