Flattish tones observed in early trades

  • German DAX futures +0.1%
  • French CAC 40 futures flat
  • UK FTSE futures +0.1%

There isn't much enthusiasm among equities to start the day with Asian stocks near flat levels and US futures around 0.2% higher on the session so far. This comes amid a weaker performance in overnight trading.

It goes to show that investors are still heeding caution for the most part this week. Looking ahead, keep an eye on the bond market as that has the potential to spark any near-term risk moves in the day ahead.

Treasury yields are holding higher on the session still and that is keeping yen pairs underpinned with USD/JPY at 106.50 currently.