Risk is on the defensive ahead of European trading as the market continues to digest the Russia-Ukraine war. US futures are marked down to the lows for the day, with S&P 500 futures now down 0.9%.
The more negative sentiment is also catching up to the aussie and kiwi, both of which have fallen from grace since trading yesterday. AUD/USD is down below 0.7300 and breaking back below its 200-day moving average of 0.7318.
Elsewhere, the yen is also sitting lower as bond yields are keeping higher on the day. 10-year Treasury yields are up 4 bps to 1.79% currently, hinting at a calmer mood as compared to stocks.
In the commodities space, we're continuing to see a blowout in metals with the likes of nickel soaring once again after yesterday's stunning rise. The short squeeze has seen nickel hit $100,000 (!).
The LME has stepped in but its actions really throws into question the integrity of the market. Pfft.
Anyway, economic data will once again remain in the backseat so focus on the headlines as we slowly start to shift our attention to key central bank meetings this month.
0700 GMT - Germany January industrial production
1000 GMT - Eurozone Q4 final GDP figures
1100 GMT - US February NFIB small business optimism index
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
