The earlier rebound in the market today has all but faded
European equities are being hammered lower once again, with the DAX now down by over 2% on the day. US futures have also given up gains with S&P 500 futures now down by over 0.7% currently.
Meanwhile, US yields are tumbling once more with 2-year yields at session lows - down by over 20 bps - to 0.707%. 10-year yields are down to 1.044% after having reached a high of 1.158% to start the European morning.
Risk aversion is slowly starting to come in as hopes of global central bank stimulus appear to be dashed as the virus outbreak continues to rampage across the world.
Is this the market realising that monetary policy can only do so much until a proper solution is found to curb the virus? Or are investors waiting on Wall Street to lead the way?
We'll have to wait and see I guess. But in any case, the usual suspects from last week are still continuing to shine with EUR/USD now breaking above 1.1100 and USD/CHF tumbling to its lowest levels since September 2018 at 0.9565 now.
Update: Just like that, E-minis are down by 1.5% now.
