The angst in markets is certainly showing up early today. S&P 500 futures are now down 0.7% and Nasdaq futures down 1.2%. This comes as bond yields are dipping, with 10-year yields in the US falling to below 3.70% – down 3.8 bps on the day.
It’s all positioning flows ahead of the US jobs report later. USD/JPY is also down 0.9% to 142.20 with the low earlier touching 142.06 just moments ago. Meanwhile, USD/CHF is also down 0.4% to 0.8405 as European indices also drop further after the softer open.
All eyes now are on the non-farm payrolls data to see how that will corroborate with the story. And not just for the debate on the Fed’s next move. But also in terms of the overall market view on the global growth outlook. The worries have been creeping in over the last two weeks and we’re reaching a critical juncture here.
Market players will at least also have the weekend to digest all that. But in all likelihood, the data later today will set the tone for trading sentiment next week as well.