The yen is leading gains in the major currencies space with the dollar sitting a touch softer for the most part. It's an interesting start to the day but given the mood in equities, I fear we might see a more risk-off tilt later in the session.

Higher bond yields is still the name of the game this week and broader markets are basically responding to that.

I'd keep a watchful eye on the S&P 500 and Nasdaq charts as pointed out here. Things may get a bit dicey as we see key technical levels give way and that might allude to a sharper selloff this week. In turn, that might spark broader tones of risk aversion in general.

As such, despite oil prices staying buoyed, that's a caveat to watch out for before the week comes to a close.

But in any case, I'll be watching (and hoping) for any major correction in equities as I reckon that will present yet another opportunity for dip buyers to step in. As much as there is plenty of talk about rate hikes and the Fed's balance sheet runoff, it is tough to find alternatives when real rates are still negative.

I reckon European stocks might outperform once again at the end of the day but I doubt we'll see as sharp a drop in stocks for the region as compared to US in the event of any major correction.

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