The market mood is tilted towards being more risk averse this morning
European indices are mostly down by over 1% on the day, with the DAX nearing a decline of 1.7% currently as US futures are also seen slumping.
S&P 500 futures are down 0.8% with Nasdaq futures also reflecting a similar decline.
Elsewhere, 10-year Treasury yields are down 1.6 bps to 0.89% while the dollar is holding slightly firmer in European morning trade so far.
Looking at the greenback, it is keeping slight gains against the euro but finding it tough to breach the 100-hour moving average @ 1.2115.
The dollar has also pared losses against the aussie and kiwi but is still some distance from testing the key hourly moving averages in both pairs.
Cable is back sliding below 1.3200 but that owes more to the pound's woes amid Brexit angst, with EUR/GBP on approach to 0.9200 as well.
Overall, it looks like the market is taking a breather and the risk rally in recent weeks looks to have met a pause. Is there scope for a further pullback? Perhaps, considering year-end positioning adjustment and rebalancing flows.
Not to mention that US stimulus talk continues to go nowhere and there's also the specter of a no-deal Brexit potentially on the cards going into next week.
In the big picture though, this is surely going to end up being another dip that will be bought into if that is what it comes down to.
