Russia-Ukraine tensions continue to be the key driver of sentiment as markets are waiting on any further developments to run with. Risk tones were more positive yesterday but we're seeing a lack of follow through as the siege on Kyiv continues while talks are reportedly going to take place once again later today.
Oil prices are higher but have come well off their earlier highs, with Brent still up 2% above $115 but is down from $119.84 at the start of European morning trade. Meanwhile, gold is holding up by 0.4% to $1,933 as buyers are not quite letting up just yet.
Looking at risk, equities are slightly more sluggish with US futures down around 0.3% and European indices also trading modestly lower with the DAX down 1.1% and CAC 40 down 0.5% on the day.
Bonds are little changed for the most part so it remains to be seen what traders are trying to make of the overall mood. 10-year Treasury yields are near flattish at 1.868%.
Looking over to FX, the dollar is mixed as it holds a light advance against the euro, yen and pound. EUR/USD is down 0.3% to 1.1090 as the pressure below 1.1100 continues to mount. Meanwhile, USD/JPY is up 0.2% near the highs at 115.75.
The greenback is trading down against the franc, loonie and aussie but have trimmed earlier losses at least. AUD/USD was up to around 0.7323 earlier but is now keeping around 0.7303.
In short, there's still some pushing and pulling as markets continue to digest the news and developments, awaiting for the next fresh catalyst.
