Risk-off flows ease a little but sentiment remains

S&P 500 futures and European equities rebound off the lows

But remain in negative territory still. S&P 500 futures fell by 0.8% at one point, but has now clawed its way back to around a 0.4% loss for the day. Germany’s DAX fell by 0.9% earlier but is now only down by 0.2%.

The market may still be focusing on trade tensions but the rebound here may provide some encouragement ahead of US trading later. This hasn’t quite translated to Treasuries yet though, with 10-year yields still down 3 bps to 2.847%.

But it has at least pushed up USD/JPY a little with the pair now trading at 109.87 from lows of 108.69 posted earlier in the session.