The market is still keeping more defensive to start European morning trade
US futures are down ~0.4% while Treasury yields are a little lower, with 10-year yields down 1.2 bps to 0.524% currently. Meanwhile, European stocks are also starting to tilt lower after the mixed start with the DAX erasing gains to trade at flat levels.
The risk mood has been largely tempered by Trump's earlier actions against Chinese tech companies ByteDance and Tencent:
- Trump has signed an executive order on ByteDance to divest TikTok
- Trump signs executive order to address threat of WeChat
That is keeping the dollar and yen a little more on the front foot but gains have been more measured over the past few hours. Elsewhere, gold and silver also saw a bit of a retreat after pushing to fresh highs in early trading today.
All eyes will now turn towards the US non-farm payrolls report as market participants will look towards that for further clues on how to proceed ahead of the weekend.
