Investors continue to maintain defensive positions with stock indices continuing to fall across the globe and bond yields continuing to rise and the US Dollar maintaining strength. So far most markets have been orderly with limited panic and the vix index rising but not sharply. There has been no real catalyst to this defensive behaviour , but a general fear of the trade dispute with the US and China and where it may lead along with a sharp rise in US bond yields over the past week has spooked investors generally bullish on equities.
The US quarterly earnings season is due to become more active by the end of this week with most analysts thinking that the earnings will be very strong again. On Thursday we will see the latest US CPI figures which will be keenly watched to see if recent bond yield moves are justified.
No major US data due out today.
European markets continue to weaken with concern with the Italian government and the blowout in bond yields after the dispute with the EU over the budget spending.