Risk appetite being tested once again today
- S&P 500 futures -0.2%
- Nasdaq futures -0.3%
- Dow futures -0.2%
- Russell 2000 futures -0.2%
The more sombre mood from Asia is keeping risk sentiment more tepid as we start European morning trade, with the 3% drop in the Hang Seng (HK government raising stamp duty tax on the stock market for the first time since 1993) a major dampener.
That said, US futures were also looking more sluggish earlier on with Nasdaq futures falling by 1% before recovering those losses to be down by 0.3% now.
Much like yesterday, trading today will be a test of the market's risk appetite and how investors are taking to the Fed put and dovish central bank mantra as a whole.
In the major currencies space, the franc and yen are among the laggards still after the rebound in Wall Street yesterday. The latter is trading to near two-year lows against the aussie after EUR/CHF broke above 1.1000 for the first time since December 2019.
