European indices are now down well over 2% with the CAC 40 and Italy FTSE MIB posting over 3% losses on the day. This comes as a bout of risk aversion is kicking in on the session, with US futures also dragged lower now. S&P 500 futures are down 0.5% and Nasdaq futures down 0.6% after having held up earlier.
This comes as we see a flight to safety with bonds being more bid. 10-year Treasury yields were up earlier to around 1.95% but is now down 1.7 bps to near 1.93%.
Meanwhile, the dollar and yen are seeing more inflows as well with EUR/USD down to 1.1310 and AUD/USD down to fresh one-week lows under 0.7100 on the day:
The aussie is also falling below support from the 50.0 retracement level @ 0.7108, leaving the door exposed for a potential drop to the 4 February low @ 0.7052 next.
GBP/USD is also dragged down by 0.4% to 1.3505, nearing a test of its 100-day moving average @ 1.3500.
