Stocks and bonds send diverging signals over risk
European stocks and US futures are trading higher, while bond yields are keeping lower in the European morning session
The common phrase in markets tends to be "don't bet against the bond market" but with key tech earnings in Wall Street today, I'm a bit unsure on how this showdown is going to play out in the trading day ahead.
Markets continue to be gripped by concerns surrounding the coronavirus outbreak but so far, stocks have shown remarkable resilience since yesterday in brushing that aside.
We'll have to see which side the market decides to lean on later in the day but for now, the diverging signals aren't providing much help for traders to gauge the overall risk mood.