The wheels are starting to come off again for risk
US equity futures are taking a bit of a dive at the moment with E-minis down by more than 0.6% currently after tepid trading earlier in the day. Evidently, there are still worries about US-China relations with the whole Huawei case still ongoing but this highlights the sort of fragility seen in markets right now even if there was a solid recovery overnight.
European equities may be looking to play catch up later on but the signals being sent out here won't bode well for any form of decent rebound as jitters remain.
US Treasury yields are also weighed lower to session lows now with 10-year yields at 2.870%, down by 2.4 bps. There's only been a mild reaction in the yen so far but currencies are still fast asleep with traders keeping an eye on the US payrolls to come later.
Be on the look out for this in trading today. It could once again be a bit of an ugly scene by the time US traders begin their morning.
