Chart of Daily Dax index CFD.
Strong employment numbers out in US on Friday and higher average weekly earnings has changed the market expectations for inflation and interest rate rises. Now market can see more rate rises and this has helped the US dollar to rally and caused a widespread fall in equities in most markets.
Business conditions are still strong with PMI in France out tonight at 59.2 , so markets should not fall too far.
Bond markets continue to price in increased inflation expectations with US 10 yr at 2.84 and German bunds at 0.74%.
US stock futures are pricing in further falls tonight but volatility has reduced from Friday.
EUR now at 1.2465 up 8 , GBP at 1.4122 up 3 , DXY at 88.93 down 11. Dax at 12711.50 down 10 , CAC at 5321 down 42 and FTSE at 7377 down 22.