Headlines:

Markets:

  • CHF leads, GBP lags on the day
  • European equities mixed; S&P 500 futures down 0.1%
  • US 10-year yields down 5.5 bps to 3.685%
  • Gold up 0.5% to $1,931.72
  • WTI crude up 0.3% to $69.39
  • Bitcoin down 1.9% to $30,320

It was a quiet session for the most part but risk tones continue to stay on the more cautious side after last week's selling in equities.

The bid in bonds is what is notable today and that dragged stocks lower after a bit of a breather in Asia trading. A softer German Ifo report isn't helping with the mood, as recession risks are starting to rise again in Europe.

There was also the typical verbal jawboning by Japanese officials on the yen, but USD/JPY is still keeping above 143.00 even if it is down 0.4% to 143.15 currently. The price action there is largely to do with the bond market though I would say, as 10-year Treasury yields are down heavily to start the week.

Meanwhile, the dollar itself is mostly mixed as it keeps little changed against the euro and pound. The franc is gaining some modest ground though, arguably due to safety flows while the kiwi is also holding higher with AUD/NZD accelerating its downside move from last week towards 1.0800 next.

As mentioned earlier in the session, there is something to consider for risk/equities this week:

"But can it (the calmer mood) last? The question last week was whether growth worries or the run up to quarter-end being reasons to have dragged equities lower. If it is the former, things haven't really changed. If it is the latter, there's going to be added focus this week as we gear towards Friday. That might make any rebound or slight relief like the one we're seeing now rather tentative at best."

Besides that, the news from Russia over the weekend isn't really impacting markets all too much but it is worth keeping a watchful eye just in case.