If there’s one thing you have to look at today, it is that things aren’t going well in China. The trade balance data from earlier was rather poor and that seems to be reigniting recession risks now in European trading. Stocks are pushed lower still while we are seeing a notable retreat in bond yields now. 10-year Treasury yields are down nearly 8 bps to hit the 4.00% mark again:
US Treasury 10-year yields (%)
It’s been a tough one to read in the bond market so far in August trading but for stocks, it has been more straightforward as the turn of the month has brought in a fresh round of selling pressures.
S&P 500 futures are down 0.5% on the day now with European indices seeing losses of around 0.8% to 1.0% on the day.
This is akin to more of a risk-off mood in markets now as the dollar is also finding itself more bid across the board. AUD/USD is bearing the brunt of the declines, down 0.9% to 0.6515 currently.