Risk still hinting at indecision in European morning trade


Treasury yields keep lower while European equities are trading more mixed

Treasury yields keep lower while European equities are trading more mixed
ForexLive

The market still isn’t quite sure of what it wants to be doing today, after the risk-off mood yesterday was tempered with gains in Wall Street once again – although the positive jump sort of fizzled towards the end of the day.

European equities are more mixed now near flat levels, while US futures are mildly higher with S&P 500 futures up by 0.1% at the moment.

I reckon the general feeling in the equities space is that as long as we don’t see the risk mood suffer all too much, Wall Street is going to come in and buy it up later in the day.

However, the bond market is continuing to hint at more caution with US 10-year yields down to session lows of 1.593% currently – lower by 2.4 bps.

It is all about the Friday trade at the moment as investors are trying to debate between erring on the side of caution ahead of the weekend (do take note it will be a long weekend in the US) or having the confidence that the worst is behind us on the virus outbreak.

Your guess is as good as mine as to how things will pan out so I would say that the best bet would be to go with the flow once things become more clear later today.



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