Markets continue to be gripped by escalation in US-Iran tensions
Not much of a surprise as stocks are in the red as we look towards the European morning but things could be worse. The Hang Seng and Shanghai Composite are down by 1.2% and 1.3% respectively going into the final stages of the session.
In the broader picture, sentiment has recovered for the most part with equities and bonds well off their earlier lows and currencies are pretty much caught in the eye of the storm.
The overall risk tone still points towards some cautious and defensive posture but things aren't really as dire as when the Iran retaliation first hit the wires.
For some context, S&P 500 futures are about ~42 points of its low while US 10-year yields up 7 bps from its low point today. Both are still keeping softer on the day but as we await Trump's response, the heavy risk-off mood is taking a bit of a breather in general.
