S&P 500 futures now in positive territory
I don't see much of a reason for the turnaround in sentiment here as Treasury yields are still lower on the day and there isn't any massive change in the Chinese yuan either.
European equities are also extending gains from earlier with the DAX now up by more than 1%, being defended at the 200-day moving average (blue line):
The technical picture shows a double bottom at the area but I would still tread with caution considering that overall risk sentiment remains more tepid and cautious in my view. If there's always ever one thing, is that you don't argue against the bond market.
For now, I'm not buying the slight recovery in equities. The risk outlook remains one that is more focused on US-China trade tensions and I reckon all it takes is one negative headline to set off another wave of fear across markets.
