Markets:

  • USD leads, AUD lags on the day
  • European equities lower; S&P 500 futures down 0.50%
  • US 10-year yields flat at 3.91%
  • Gold flat at $2,500
  • WTI crude down 1.88% to $72.17
  • Bitcoin down 0.17% to $50,041

The European session has been dominated by defensive positioning into the US ISM Manufacturing PMI release. As a reminder, the last month the ISM Manufacturing PMI triggered a selloff in risk assets as we got the growth scare.

The main culprit might have been the employment sub-index dropping to a 4 year low, so that will be something to keep an eye on today ahead of the NFP report on Friday.

Early in the morning, we got the Swiss CPI report which came out a touch softer, although the Core measure remained unchanged, and diminished the probabilities for a 50 bps cut at the upcoming SNB meeting.