Risk tones keep on the defensive ahead of European trading

It was a wild day of trading yesterday after the US CPI data release, with the dollar initially gaining before tumbling in response, and then making up all of that and more as markets start to lean towards a 50 bps rate hike by the Fed in March.

Bullard's comments were quite the game changer in that regard.

Equities dropped on the inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term beat initially but recovered strongly after before being sold off heavily in the latter stages. And the downside is continuing to run now, with US futures pointing to rather modest declines.

S&P 500 futures are down 0.7%, Nasdaq futures down 0.8%, and Dow futures down 0.6%.

The rout in tech may have more legs to go considering that we are seeing 10-year Treasury yields keep above 2% for now, looking to solidify a weekly close above the key level.

Overall, this is setting up for a more defensive risk tone as we approach European morning trade.