The fears generated by US-Iran tensions are abating
S&P 500 futures are down by 0.2% but are basically holding at session highs now after recovering by ~50 points from its lows amid escalating US-Iran tensions earlier today.
Meanwhile, bond yields have also clawed their way back up with US 10-year yields keeping near 1.80% on the session currently. In turn, gold is seeing a bit of a retreat towards $1,585 - a far cry from its high of $1,611 in the early stages of the day.
European equities are still trading in the red but overall, the risk-off tone is much more measured compared to what we saw when the chaos ensued after Iran launched missile attacks on US airbases in Iraq.
In the currencies space, USD/JPY has also pretty much erased all of its losses and is trading at 108.43 currently. This all still points to market participants keeping cautious but opting to fade some of the earlier fear amid the lack of an urgent response by Trump.
He tweeted overnight that he will be making a statement in the US morning so all eyes will be on that next. As such, expect markets to keep with the current mood over the next few hours as we await further developments in geopolitical tensions between US and Iran.