Risk keeps more defensive ahead of European trading
Risk sentiment remains fragile despite the Wall Street comeback yesterday
The Nikkei is trading down to session lows, falling by 1.4% as US futures are also marked lower as we start to look towards European morning trade today.
That said, the sharp decline in Hong Kong and China is the sour story in Asia with China investors poised for a record outflow out of Hong Kong stocks this session.
The Hang Seng is down 2.9% while the Shanghai Composite is down 1.6% currently. The drop comes after Hong Kong announced to increase stamp duty on stock trades for the first time since 1993.
As much as the market is keeping hope on Biden's stimulus passing a vote later this week, optimism is somewhat fleeting but after yesterday's action, it is hard to rule out dip buyers stepping back in once again later in the day.
A snapshot of US futures at the moment:
- S&P 500 futures -0.4%
- Nasdaq futures -0.7%
- Dow futures -0.3%
- Russell 2000 futures -0.1%