US-China tensions weighed on sentiment yesterday all before Pelosi’s arrival in Taiwan and that lit up the animal spirits in markets. Wall Street still closed the day on a softer note but we are seeing steadier tones so far today. The more composed mood in the bond market is perhaps also helping with that as Treasury yields are little changed for the most part.
Here’s a look at the equities space at the moment:
- Eurostoxx +0.4%
- Germany DAX +0.2%
- France CAC 40 +0.2%
- UK FTSE flat
- S&P 500 futures +0.4%
- Nasdaq futures +0.4%
- Dow futures +0.4%
The changes aren’t anything to shout about but it is reflective of some form of release as we await further key events on the week. US-China relations will stay in focus as China conducts military exercises surrounding the Taiwan island from Thursday through to Sunday. Then, we also have the BOE tomorrow before the US jobs report is released on Friday.