It was doom and gloom to start European trading but all of a sudden, we're seeing a bit more of a bounce now with equities paring most of its heavy losses on the day. S&P 500 futures were down by about 50 points earlier but have now trimmed that to just 6 points, down 0.2% after the opening hour in Europe:
That is also seeing European indices trim their losses on the day:
- Eurostoxx -0.2%
- Germany DAX -0.3%
- France CAC 40 -0.2%
- UK FTSE -0.7%
Looking over to the bond market, there is also a bit-part relief after the sharp declines earlier. 2-year German bond yields are up to 2.20% from around 2.09% earlier, though still down by 23 bps today. Meanwhile, 2-year Treasury yields are down 13 bps to 3.71% but at least off its earlier lows near 3.63% at the start of the session.
It still seems like markets are leaning towards being more risk averse at the moment at the balance. But just be wary that things are still volatile and it may take some time for sentiment to settle down in a more straightforward manner.