Haven flows lead the way to start the week
The Japanese yen and Swiss franc are the two top performers to begin the day as worries continue to mount in the equities space in the wake of higher yields. There isn't any major form of capitulation just yet but these are still sensitive and nervy times as sentiment remains extremely fragile.
Asian equities have started the day on a softer note with the Nikkei among the leading losers down by 1.5% falling back below the 200-day MA (blue line). The Hang Seng index is down 1.0% at the break and the Shanghai Composite index is down 0.8% currently.
Of note, E-minis are down by almost 0.3% currently as well and that is adding to the slightly softer tone in risk sentiment that we're seeing as we begin the week.
However, the key in trading risk sentiment will be once again to look towards the performance of the US cash equity market. That will be the ultimate driver in deciding whether or not we're in store for a rebound or if the jittery tones will continue. Of note, watch out for a threat of the S&P 500 falling back below the 200-day MA once again.
