There is a light rebound in risk trades so far today, following the massacre in trading yesterday.
Equities - tech especially - were routed badly with the S&P 500 falling by 3.2% and Nasdaq falling by 4.3%. The charts certainly paint a rather dreadful picture for US stocks at the moment:
The S&P 500 is contesting a break below its 100-week moving average (red line) with little in the way of a push towards the 38.2 Fib retracement level support @ 3,815. Meanwhile, the Nasdaq is looking to post a sixth consecutive weekly drop - the first since 2012 - and heading towards the 50.0 Fib retracement level support at 11,421.
Sentiment is still on a knife's edge so the light reprieve going into Europe may yet prove to be fleeting. The dollar has made a decent advance against commodity currencies yesterday with USD/CAD pushing past 1.30 and AUD/USD falling past 0.70. Those will be key pairs to watch in the sessions ahead.
Safety flows helped to see bond yields drop by a fair bit and the retreat is continuing a little for now. 10-year Treasury yields are down 4 bps to 3.04% and we'll see if yields can hold above the pivotal 3% mark this week.
There won't be much on the agenda in Europe to shake things up so the risk mood will continue to dictate trading sentiment in the session ahead.
0900 GMT - Germany May ZEW survey current conditions, economic outlook
1000 GMT - US April NFIB small business optimism index
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
