The DAX is down 1.5% to its lowest level since 1 November
Continued hints of risk aversion remains the name of the game in European morning trade today as equities continue to take a deeper hit on the session.
It hasn't quite translated to major risk-off moves across other asset classes but we are observing some defensive risk flows so far.
US futures are still down by ~0.3% while 10-year Treasury yields are lower by 1.2 bps to 1.807% currently. The milder reaction in these two areas are still keeping other risk flows a bit light for the time being.
USD/JPY continues to stay near the lows for the day around 108.56 (11 pips range still) with USD/CHF keeping at 0.9866 for the time being.
An interesting divergence between the DAX and German economic fundamentals during the course of this year:
