The market is still in risk-off mode ahead of North American trading
US futures are down by ~0.9% on the day while European indices are posting near 2% losses across the board as we approach midday in Europe.
Meanwhile, US Treasury yields are at the lows of the day across the curve with 10-year yields now down by more than 5 bps to 1.282% currently:
In the currencies space, the franc is leading gains with USD/CHF moving towards 0.9700 while USD/JPY continues to flirt with a break of the 110.00 level - currently at 110.03.
The dollar is among the laggards for the day as the fall in Treasury yields is weighing on the greenback, with the market also now almost fully pricing in a Fed rate cut by April.
Fears surrounding the coronavirus and a potential widespread outbreak in the US is what is leading to the aggressive pricing, so let's see how that all plays out in the coming days.
For now, risk aversion remains the name of the game and there doesn't appear much to convince the market to turn the corner just yet.
That said, for S&P 500 futures, just be mindful that price is nearing a key support level i.e. 200-day moving average and that may give reason for a slight technical bounce.
