Equities tilted more defensively to start the session
- Eurostoxx -0.4%
- Germany DAX -0.4%
- France CAC 40 -0.3%
- UK FTSE -0.5%
- Spain IBEX -0.4%
This mirrors the softer tones in US futures as well, with S&P 500 futures down 0.2%. Meanwhile, 10-year Treasury yields are down 2 bps to 0.837% currently.
The market is still mulling over things after the dose of vaccine optimism on Monday, with the good vibes fading further as the week progresses. It is pretty much the same case last week after the Pfizer news, but perhaps with a quicker adjustment.
There is light at the end of the pandemic tunnel but the here and now is still filled with uncertainty as the virus situation in the US and Europe is calling for tighter restrictions to be implemented going into the year-end.
It is all about the battle between the contrasting narratives in the market for the time being and it will stay that way until there is more clarity in the coming sessions.