After the poor end to last week, US futures are finding some steadier footing today with a modest rebound being posted. That said, the charts might be the more influential driver of sentiment this week and the S&P 500 falling below both its 100 and 200-day moving averages for the first time since May 2020 isn't exactly a sign of confidence.
As such, it is a bit early to draw much conclusions from the rebound so far today.
Elsewhere, Treasury yields are also looking calmer since the latter stages of last week but they remain elevated. 10-year yields is up near 3 bps today to 1.775% but that's quite a pullback from the high of 1.90% last week.
It's all about risk sentiment for now before the focus slowly starts to shift towards key central bank meetings later in the week, with the BOC and Fed lined up.
0815 GMT - France January flash manufacturing, services, composite PMI
0830 GMT - Germany January flash manufacturing, services, composite PMI
0900 GMT - Eurozone January flash manufacturing, services, composite PMI
0900 GMT - SNB total sight deposits w.e. 21 January
0930 GMT - UK January flash manufacturing, services, composite PMI
The PMI readings should reaffirm a more tepid handover from December to January, as the omicron spread is still limiting activity in the euro area to start the year.
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.
