European equities slump further alongside US futures
This is helping to fuel further gains in the yen, with USD/JPY now testing waters below its 31 July low and eyeing the 104.00 handle. It is a bit of a self-reinforcing move, but broader risk sentiment in general is looking pretty dour to start the session.
The DAX is now down by 1.8% while US futures are now down by 1% after paring some of its earlier declines in the past hour or so. Elsewhere, 10-year Treasury yields are also down by 2.3 bps to 0.67% and that is keeping a further bid in the yen.
Meanwhile, the dollar is recovering from some of its earlier losses with EUR/USD now down to 1.1850 from 1.1870 and GBP/USD down to 1.2930 from 1.2960 levels earlier.
