Risk looks a bit shaky to kick start the European morning
Bond yields fall while European equities are seeing red
Some hints of risk aversion is creeping in as bond yields fall, seeing US 10-year yields lower by 1.4 bps to 1.832%, while European stocks are also skidding a little currently.
The DAX is down by nearly 0.6% as US futures are also being dragged lower to start the session. Meanwhile, gold is trimming losses (down by ~0.3% now) but seeing the price action in bonds above, perhaps gold has some room to gain a little more still.
Meanwhile, USD/JPY has erased all of its earlier gains and is trading at session lows around 109.90 currently. I would argue that this is the market signaling caution over extended gains ahead of the US-China trade deal signing.
As mentioned earlier, with US stocks hitting all-time highs and what not, it really presents a compelling case for risk trades to take a breather after the risk event tomorrow.