Flatter tones observed in early trades
- German DAX futures flat
- French CAC 40 futures flat
- UK FTSE futures -0.3%
This is reflective of the mood seen in US futures, with E-minis having recovered from losses of nearly 2% earlier in the session to stay near flat levels now. Despite the more neutral tone, risk sentiment is on the more buoyant side considering the rebound seen today.
Bonds are more telling of that with US 10-year Treasury yields up by 4.7 bps to 1.755% currently, allowing for USD/JPY to rebound to 106.60-70 levels currently amid a more stable Chinese yuan following the PBOC actions earlier in the morning.
