And that doesn't bode well for investor confidence in Europe
The Chinese CSI 300 index is now down by more than 2.0% on the day with the Shanghai Composite at session lows as well down by 1.8% currently. With Italian bonds still showing signs of nervousness in yesterday's trading, it's not setting up to be a stellar day for risk sentiment to say the least.
Treasury yields are lower as well with 10-year yields down 2.6 bps top 3.171% and E-minis are also trading lower in the Asian session down by 0.8% currently.
The mood to begin the session ahead is clear and that is of a risk off tone and this continues to see the Japanese yen lead the way in the currencies space. As the equities weakness spreads to Europe, expect that to keep the yen underpinned on the session.
