S&P 500 futures have turned losses into gains and are now up 0.7% on the day. In turn, European indices are also trading lightly in positive territory with the DAX up 0.1% and CAC 40 up 0.2% on the session.
In the bond market, 10-year Treasury yields are also up over 3.4 bps now to 1.745% while 2-year yields are up 8.5 bps to 1.390%. Just a side note, the curve continues to flatten with 2s-10s now around 35 bps.
Meanwhile, gold is down 0.5% to $1,934 from around $1,941 earlier in the session.
It's tough to square the market mood but it looks like there is a sense of pushing and pulling going on as investors are still digesting the Russia-Ukraine situation. Both sides seem headed for another round of talks but be mindful that the war on the ground is still ongoing as well, so there's that.
Until we see more key developments on either front, it doesn't seem like there is appetite for more sanctions but there will surely be steps taken once we see things start to progress in the days ahead.
In the FX space, the euro is the laggard with EUR/USD having fallen to 1.1060 before keeping around 1.1080 now. The break below 1.1100 breached some barrier options and that is allowing sellers to keep the downside pressure on the day.
Other major currencies are little changed for the most part though USD/JPY is now back up to 115.25, up 0.3% on the day.
