Risk a little softer still but the overall mood is much better now
As mentioned earlier, with Chinese markets closed for the day, the market may be able to breathe easier that the bleeding has stopped and knowing the fact that Wall Street also has a knack for buying up dips as seen over the past week.
US futures have trimmed losses now with S&P 500 futures down 0.1% and Nasdaq futures even trading up near 0.1%. It will be a big day for tech earnings, with Apple, Microsoft, and Alphabet to report after Tesla did yesterday.
Looking at the bond market, yields are slightly lower but well off earlier lows with 10-year yields now at 1.263%. The low today touched 1.241% at the tail-end of HK close.
In FX, the dollar is making up some decent ground after falling yesterday, with commodity currencies still pressured lower but off earlier lows too.
USD/JPY was brought down from 110.25 to 110.00 but is seeing the figure level hold as the pair keeps around 110.10 for the time being.
It looks like the market has managed to find a footing and calmer tones look set to prevail going into North American trading as we resume the countdown to the Fed.