The market is pulling back some of the moves from yesterday
US futures and Treasury yields are inching higher to start the day, and that is helping the market gain back some confidence after the risk meltdown seen in trading yesterday.
Gold is down by over 1% on the session now as it retraces all the good work to start the week, with the currencies space also seeing more calm ahead of European trading.
The aussie is continuing to stay afloat above 0.6600 with flow-driven activity cited ahead of the RBA policy meeting next week. Meanwhile, the yen is keeping slightly weaker amid the steadier risk mood with USD/JPY at 110.85 - keeping off lows around 110.65.
European stocks also look set for a brighter start but investors may still have to debate whether this is due to some profit-taking activity i.e. a breather before resuming the risk selloff, or if greed is once again stepping in with central bank stimulus leading the charge.
It'll be interesting to find this out but for now, risk remains fragile but there is some encouraging signs to start the day after the beat down yesterday.
