S&P 500 futures give up its gains from the earlier headline
E-minis are back down to over 0.5% lower on the day and that's also weighing on yen pairs in general in the European morning session. USD/JPY has been brought lower to 110.58 currently after having touched a high of 110.85 after China confirmed that vice premier Liu He will be attending trade talks in Washington this week.
US equity futures also erased about 0.5% of its losses but is now almost back to levels before the headline came about. Other than that, oil is also down on the day with Brent lower by 0.7% to $70.75 currently. Meanwhile, Treasury yields have also fallen slightly with 10-year yields seen at 2.474% now after having touched 2.500% earlier at the start of the session.
Once again, cautious tones are likely to prevail throughout the week until we see the outcome of the US-China meeting on Thursday; so don't expect any risk recovery rallies to go uncontested and the price action this morning is but an example of that instance.
