The market is still in risk-off territory in European morning trade
European equities are actually shaving off earlier losses with the DAX now down by around 3% after having seen losses of 5% earlier in the session. The mood in US futures is also similar with S&P 500 futures now down by 3% after hitting limit-down very early in the day.
So far, risk aversion is still the name of the game but there is no major bloodbath - like the ones we saw last week - just yet. It is a strange time in the market when you start to label 3% losses in the equities space as being 'not that bad'.
Looking ahead, we'll have another vote on the US coronavirus economic relief package at 1345 GMT after the initial vote failed yesterday. Let's see if that can turn the tide in the market as we look towards North American trading later.
In the currencies space, the dollar managed to trim losses against the major currencies bloc to only trail behind the yen on the session. Even so, USD/JPY has climbed from a low of 109.67 to trade at 110.60 currently - nearly 100 pips higher.
For some context, the dollar didn't have the best of starts to the European morning today. But at least the greenback is killing it against emerging market currencies as we continue to see a major rush to the dollar amid the selloff in Asian markets.
