It’s all about the risk-off vibes for now amid the kneejerk reaction to the events over the weekend, in which we saw a surprise attack by Hamas on Israel. That is keeping equities on the defensive while the dollar is bid in European morning trade so far.
But just be wary that while European bond yields are lower amid safety flows, Treasuries are not open for trading today. And that is a major caveat to take note of, considering how the US bond market has been leading the rest of the market over the last three weeks or so.
Wall Street will still be open to trade stocks but it’s hard to read too much into the moves today until we get bond traders back in. For now, there is the broader element of risk aversion but once the fear is faded, we’ll get back to the regular scheduled programming soon enough. And I reckon it could only take a day or two since we do have the US CPI data coming up later in the week.