The classic risk-off tale in markets today
It feels like it has been a while since we last saw such moves in the market play out, but the day so far is all about the risk-off mood as we await the return of North American traders – Wall Street in particular – after the long weekend.
European indices began with some hopeful optimism but that quickly faded as US futures sank with the tech-heavy Nasdaq futures leading losses, down by over 2% now.
Elsewhere, Treasury yields are also slipping with 10-year yields down 3.5 bps to 0.682%.
The overall mood is keeping the dollar and yen firmly in charge in the major currencies space and that certainly rings a familiar bell in markets, no?
The pound is the biggest loser though in FX as Brexit woes continue to weigh on the currency, with cable falling by over 100 pips once again as sellers tee up the 1.3000 level.