European indices have erased opening gains to turn red now on the session, posting slight losses. The Eurostoxx is down 0.1%, the DAX down 0.1%, and CAC 40 down 0.2% currently. Meanwhile, US futures are also retreating with S&P 500 futures down 0.2%, Dow futures down 0.3%, and Nasdaq futures down 0.2%.

It's tough to square the market mood as higher bond yields in general is still something to consider, adding to hawkish central bank expectations and the inflation backdrop.

I reckon the market mood may be a bit unsettled before we get to the US inflation report on Thursday.

For now, it doesn't look like any form of optimism would be too lasting. That's a cautionary sign in case we continue to see more hawkish commentary from major central banks in the weeks ahead.