Futures show solid gains as the catch up play begins
- German DAX futures +1.5%
- French CAC 40 futures +1.3%
- UK FTSE futures +1.6%
- Spanish IBEX futures +1.5%
No, we're not seeing an overwhelming risk-on sentiment in Europe. Equities in the region faced a bloodbath in trading yesterday and closed before US stocks staged their remarkable rebound. Hence, the early tones here is mostly serving as a catch up play to recoup the losses from the negative sentiment overnight that eventually faded away.
A more accurate reflection on risk today will be to look at E-minis, which are down by about 0.2% currently. Despite the late recovery yesterday, there is still a lack of optimism shown in stocks this week but expect trading sentiment to remain tepid ahead of the payrolls data later.
