In case you missed it, the headlines from China earlier today:
- COVID - Protests erupt across China: "Step down, Xi Jinping! Step down, Communist Party!"
- China protesters waving blank pages - so China bans sale the of white paper (seriously)
While there is some expectation that the country will pivot away from its zero-Covid policy eventually, it isn't happening just yet and that is sparking unrest among its people as lockdown measures return.
That is weighing on overall risk sentiment with stocks being pushed lower alongside bond yields. S&P 500 futures are down 29 points, or 0.7%, while 10-year Treasury yields are down nearly 7 bps to 3.635%. The mood is underpinning the dollar and the yen as we look towards European trading with commodity currencies being the laggards.
As yields are looking heavy, USD/JPY is also down considerably near the lows for the day just above 138.00:
After some mixed tones and some pushing and pulling amid the Thanksgiving holiday last week, it looks like markets are looking to settle on a firmer narrative to start the new week.
In turn, dollar bulls are starting to show some appetite again after a bit of a retreat during the holiday period on Thursday and Friday. There won't be much in terms of data to shake things up later today, so the risk mood will be the key driver as we get things going in the new week.
3 - Morocco's shock 2-0 win over Belgium is only their third ever victory in the World Cup and their first after 24 years.
