Risk sentiment is generally upbeat to start the day with Asian equities faring better after losses sustained yesterday. That said, Chinese stocks took the shine off gains seen in the region as global growth worries continue to weigh on sentiment there. The Shanghai Composite is trading down by 1.3% currently but that remains a rather isolated event in trading today.

US equity futures are also on the up, trading higher by 0.3% while Treasury yields have recovered from a significant drop yesterday. 10-year yields fell below 2.40% for the first time since December 2017 but is now back up to 2.43% ahead of European trading.

Looking ahead, risk sentiment should reflect a slightly more positive mood at the start of the European morning but cautious tones are likely to prevail throughout. Currencies aren’t likely to pick up too much from early trades so let’s see if there will be a focused theme to settle on ahead of US trading later.