The softer risk tones extend to Europe in early trades
- German DAX futures -0.7%
- French CAC 40 futures -0.6%
- UK FTSE futures -0.6%
This mainly reflects the mood seen in US equity futures, which are down by 0.5% now. Risk sentiment remains slightly on the cautious side as we begin trading on the session with the undertones from US-China trade tensions still weighing on markets this week.
For today, look towards euro area PMI data for more clues as further deterioration in economic conditions in the region could spark more safety flows on fears that the global economic slowdown is worsening.