It is setting up to be a rough start to the week for stocks
- German DAX futures -0.8%
- UK FTSE futures -1.1%
- Spanish IBEX futures -0.8%
The softer mood is also reflected in US futures, which are down by ~0.6% currently. Asian equities aren’t faring much better either, with the Hang Seng down by 1.6% as HSBC shares hit their lowest level since 1995 today.
Despite the more defensive risk sentiment, the dollar is on the back foot to start the day with USD/JPY hovering just above its 31 July low @ 104.19.
That will be a key spot to watch in case the level gives way and triggers more downside momentum across other yen pairs as well today, should the current risk mood keep up.