Equities remain in a cheerful mood as we approach mid-morning in Europe
It is steady as she goes for US futures as they keep gains of around 0.4% to 0.5% during the session while European equities are posting solid gains (>1%) on the day so far.
The risk mood remains buoyed by trade optimism as the US talks up a trade deal with China while we also saw a smooth-sailing UK election victory for the Conservatives.
Although bond yields retreated a little just over an hour back, the situation is more calm now as yields climb back a little to stay close to flat levels. US 10-year yields are now resting just under 1.90% after a minor drop to 1.88% earlier.
As such, yen pairs remain underpinned in general with USD/JPY sitting at session highs around 109.67 at the moment. Meanwhile, the dollar is still lagging against the likes of the euro, loonie, aussie and kiwi amid the more upbeat risk sentiment.
The pound is trading rather choppily though with cable easing from 1.3470 to 1.3350 levels amid a bit of a pullback but is now keeping just above 1.3400 in mid-morning trade.
As we look towards the weekend, the key risk in markets lie with US-China trade as we are still waiting on an official response by China after the US talked up a trade deal overnight.
