Oil is keeping above $30 now but is still down by over 20% today
At the lows earlier, oil was down by over 30% under $30 to a low of $27.34 but price is now sitting around $32.40 as the market takes a bit of a breather before we get into the thick of things later in North American trading.
The start of the European morning was a bit hectic with sharp losses across major European indices while Treasury yields capitulated further, but the tones are calmer now as even the DAX is down by "just" 6% after heavier losses of more than 8% earlier:
That said, the index is still more than 20% off the highs this year and from a technical perspective, it means that the index will enter a bear market if the losses today keep up.
In the currencies space, the yen remains the lead gainer but the likes of the aussie and kiwi have pulled back from earlier lows over the past two hours.
Despite the market finding a breather, it may prove to be temporary as the key focus now turns towards Wall Street.
S&P 500 futures triggered its circuit breaker on a 5% drop earlier and traders will be keen to follow the next move when the cash equity market opens later today.
Expect that to be the next key driver for risk moves today but if anything else, don't expect a major reprieve after the fall we have seen to start the week. The market will close ugly today regardless so the spot to watch is for any potential retracements during the week.
