The bit-part recovery isn't all too meaningful though as it comes after a heavy rout across all asset classes yesterday.
The S&P 500 fell by nearly 4% so even the fact that futures are up 1% on the day doesn't hold much significance for the time being at least. The weekly chart perhaps gives a better overview of the technical picture:
The talk at the end of yesterday was about a bear market developing but we are seeing some of the edge being taken off for now.
Elsewhere, 10-year Treasury yields are down 1 bps to 3.36% but 2-year yields are up to 3.38% as the "crazy inverted yield curve" rears its head once more this year. There will be a keen focus on how Europe takes to the bond rout amid an unrelenting selloff since Thursday in Italian bonds especially. Will we see some room for a breather?
The dollar and yen are the weaker performers on the day but that comes after a solid showing yesterday and the technical picture in the major currencies space is still very much in favour of the greenback to start the new week.
There might be some scope for a turnaround Tuesday but perhaps the bounce won't be as profound as yesterday's slump. The storm clouds are still brewing, so just be wary that sentiment remains on a knife's edge. That could see things turn quickly if the selling begins to ramp up again in the sessions ahead.
