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Equities experienced a slight rebound at the start of European trading, but this was short-lived as S&P 500 futures quickly decreased to 0.4% below their lowest point of the day.

The sluggish and cautious mood of the market persists, causing most European indices to remain low. The AUD/USD currency pair is also experiencing a continuous decline, currently at 0.6795 and down 0.8% for the day.

There are indications that there is a cautious approach towards risk as bonds are slightly more popular. The 10-year Treasury yields have reduced slightly from their initial increase, now only up by 1 basis point to 3.78% from the previous 3.82%. As a result, the USD/JPY exchange rate has also declined, from around 142.00 previously to 141.55 currently.

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