US futures down after the sharp pullback yesterday
In Asia, the Nikkei is down 2.5% and contesting its key daily moving averages as Japanese stocks are dragged lower by the rough sentiment from Wall St overnight.
After the more optimistic start yesterday, US stocks were routed pretty badly with the S&P 500 falling by 1.2%, Nasdaq down by 0.4%, and Dow down by 1.6%.
Here is the look for US futures going into the session ahead today:
Just be mindful that late-September to mid-October tends to be a rather poor seasonal period for equities in general, so keep an eye out for more turbulence to come.
In any case, the more dour mood so far today is likely to keep the yen and dollar in a better mood still with commodity currencies bearing the brunt of any deeper selloff.
So far, the loonie is slight laggard as USD/CAD is up 0.3% to 1.2715. Other major currencies are less stretchy but just be wary of the market mood as pointed out above. That might lead to some plays leaning towards risk aversion in European trading.
