Headlines:

Markets:

  • JPY leads, EUR and CHF lag on the day
  • European equities lower; S&P 500 futures down 0.6%
  • US 10-year yields up 0.7 bps to 1.776%
  • Gold up 0.1% to $1,797.22
  • WTI down 0.6% to $78.42
  • Bitcoin down 1.5% to $41,278

It was a quiet session for the most part though there were a couple of key themes to take note of.

Treasury yields initially advanced higher, with 10-year yields hitting a two-year high just above 1.80% before easing slightly to around 1.77%. That saw stocks pull back initially with Nasdaq futures falling 0.3% before paring back that loss.

But as we head towards US trading, tech is once again starting to lag with Nasdaq futures slumping by 1% now.

In turn, that has kept the dollar and yen in good standing to start the new week. EUR/USD is down 0.4% to 1.1315 in a gradual fall from around 1.1330-40 earlier. Meanwhile, USD/JPY has fallen from 115.60 to 115.20 during the session.

Commodity currencies have also seen their early gains pared with USD/CAD up from 1.2610 to 1.2650 while AUD/USD is down from 0.7200 to 0.7175-80 levels at the moment.

Elsewhere, oil is also suffering amid the latest turn with price now down 0.7% to $78.33 after being as high as $79.45.

The mood music continues to center around rate hike fears, rising bond yields, but let's not forget that China is arguably the most critical factor to consider - even if it is one that is the least talked about.