Keep an eye on the bond market
European indices have trimmed its earlier advance and while US futures also did briefly pull back a little, the modest gains are still maintained for the most part as we start to move towards North American trading later.
That comes despite Treasury yields easing back lower, with 10-year yields falling from 1.21% to 1.17% in European trading.
S&P 500 futures may be up 0.4% now but there is still a sense of trepidation and sentiment is relatively fragile after yesterday’s selloff.
As such, be wary that the early cheer for now can quickly turn if the rest of the market heeds the warning from bonds. In FX, things are still leaning towards being more cautious with commodity currencies lower and the dollar slightly higher.