A slightly more positive mood after the doom and gloom yesterday
- German DAX futures +0.3%
- French CAC 40 futures +0.2%
- UK FTSE futures +0.1%
This mainly reflects sentiment seen in US equity futures, with E-minis holding higher by ~0.5% on the day. Equities are displaying more calm so far but Treasuries are still holding firmer, with 30-year yields still under 2% (lower by 3.5 bps at 1.982%).
The push and pull between the equities and bond market will be the key factor to watch out for today. Major currencies are still largely sitting on the fence as a result of the indecision.
Looking ahead, keep an eye on that as well as the release of US data later on: Retail sales, Philly Fed manufacturing, Empire state manufacturing, industrial production.
With recession fears heightened, expect markets to scrutinise any significant miss/fallout in economic data releases from hereon.
