The pound is also a little weaker as hopes of a Brexit deal suffers a dent
- China urges US to stop pushing forward bill over Hong Kong
- China's Foreign Ministry threatening retaliation against the US sends risk lower
- Brexit - DUP says 'gaps remain' and further negotiation is needed
Those are the main headlines you need to know to get your day going as we enter the European morning session.
China threatening retaliation against the US bill on HK has seen risk trades turn lower with the yen and franc leading gains in the currencies space.
As such, the aussie and kiwi are marked lower as the PBOC also weakened the yuan slightly at the fixing today - though offering a MLF later on.
US futures are down by 0.3% while Treasury yields are also lower across the curve, hinting at more cautious/defensive risk tones to begin the day.
Meanwhile, the pound is also holding lower as Brexit negotiations look set to continue in Brussels today before the European Council summit begins tomorrow.
Looking ahead, it will once again be a day dominated by the ebb and flow for the most part with headline risk set to remain the key driver in markets.
Just be mindful that we will see US retail sales data alongside a host of central bank speakers later in the day so make sure to keep your eyes and ears peeled for that too.
