Entering into US session, Yen remains the strongest one for today even though it has already pared back much of the “flash crash gains”. Risk aversion intensifies in European session and Swiss Franc is now the second strongest, followed by Euro and then Dollar. Sterling overtook Aussie’s place as the weakest one. Australian Dollar stays the second weakest after paring some of the spike losses, followed by Kiwi.
Risk aversion will likely stay, at least at the beginning of risk aversion. After Apple’s sales outlook downgrade, DOW future is now trading down over -300 pts. But 10 year yield is back at 2.65, up from premarket low at 2.626. Stocks will be facing multiple tests in job data and ISM manufacturing in US session.
In Europe, at the time of writing:
- FTSE is down -0.33%
- DAX is down -1.16%
- CAC is down -1.09%
- German 10 year bund yield is up 0.018 at 0.187, much better than yesterday’s low of 0.150
Earlier in Asia, selloff was not to serious:
- Hong Kong HSI dropped -0.26%
- China Shanghai SSE dropped -0.04%
- Singapore Strait Times dropped -0.86%
- Japan was still on holiday
