• JPY leads, EUR lags on the day
  • European equities mixed; S&P 500 futures up 0.7%
  • US 10-year yields down 2.4 bps to 3.131%
  • Gold down 0.5% to $1,828.03
  • WTI crude up 0.5% to $106.20
  • Bitcoin up 3.8% to $20,610

It was quiet start to European trading today but things really kicked into gear after we got rather dreadful PMI readings from France and Germany. The data pointed to a significant drop in economic activity as inflation grips, alluding to the likelihood that the ECB looks set to hike into a recession later in the year.

In FX, the yen was the only notable mover early on and it caught a further bid alongside the dollar as risk tones turned more sour. USD/JPY held mostly around 135.30-50 levels on the session but other yen pairs fell hard before paring losses a little as equities bounced back.

EUR/USD fell from 1.0570 to 1.0485 before sticking around 1.0500 now, holding at its 200-hour moving average. Meanwhile, GBP/USD slumped from 1.2240 to 1.2170 before bouncing back to around 1.2220 levels now as buyers hang on to short-term support as outlined here.

Elsewhere, AUD/USD kept lower throughout after a push from 0.6900 to 0.6870 and is still down 0.5% on the day around 0.6890-95.

The equities rebound is less broad-based with bond yields still pressured lower in Europe after the dismal data while Treasury yields are also lower, though paring back some of its drop from earlier. 2-year yields briefly dipped below 3% before sticking around 3.02% now.

In the commodities space, oil continues to intrigue as it slumped heavily early on and looked poised to continue the drop from yesterday before turning things around now to be up on the day. At the lows, WTI crude traded near $102.30 but is now holding higher around $106.20.