Positive vibes seen in early trades
- German DAX futures +1.2%
- French CAC 40 futures +1.1%
- UK FTSE futures +0.9%
The late recovery in US equities overnight, where we saw the S&P 500 pare losses of as much as 1.9% to near flat levels is in part feeding into the gains here. The more buoyant mood in equities today is also helping, with E-minis up by 0.4% as we begin the session.
That said, the bond market is still sending an opposite signal and that is the reason why the yen is holding more firm at the moment. USD/JPY is closing back in on the 106.00 handle and I'd be wary of that as we could see a switch from greed to fear later on in the day.
