US equity futures slip to their weakest levels on the day
S&P 500 futures are now down by 0.6% while European stocks are also extending their declines a little, with the DAX now falling by 0.7%. At the same time, Treasury yields are also lower across the curve with 10-year yields down 1.8 bps to 2.638% currently.
While markets are definitely showing signs of risk aversion ahead of North American trading, I'm still not convinced of a full-fledged risk-off mood just yet. The Trump-Xi meeting being put on ice isn't helping sentiment but it's not to say that trade talks have broken down completely.
As mentioned earlier, this appears to be more of a state of flux rather than a flight to safety in fear of trade talks failing to reach a deal. If anything, I'd expect more choppy sessions to come in the week ahead.
That said, with markets left in limbo awaiting for Trump and Xi to arrange a meet, the notable narrative to play on is that of global growth slowdown and recent economic data as well as the cutting of growth forecasts globally are surely playing on investors' minds right now.
