Asian equities turn higher, US futures stay more buoyed for now
Asian stocks are experiencing more calm, turning around heavy losses earlier in the day following reported China intervention. Alongside lower Treasury yields and higher US futures, that is keeping the risk mood in a better spot for the time being.
Nasdaq futures are up over 1% after the slump yesterday, where we saw the rotation out of tech into value take place. While the trend may not be consistent, it is one that is likely to play out more often moving forward considering the reflation narrative focus.
US futures are keeping higher across the board and that is a positive signal for risk going into European trading. That said, there is still a certain degree of fragility in place so be sure to keep an eye on the bond market in case things start to go awry.
The drop in the Nasdaq yesterday saw it test the 100-day moving average and near the 4 January low once again. That remains a key level to watch this week:
