Equities are continuing to be hammered with tech shares leading losses. Before some last-minute buying by China’s plunge protection team, the Hang Seng was down over 13% at one point just now. Meanwhile, Nasdaq futures are now down 5.8%. It’s a real bloodbath out there. The risk aversion is starting to ramp up again with 10-year yields in the US now down to 3.89% and USD/JPY nudging back towards another test of 145.00 today:
USD/JPY hourly chart
It doesn’t look like there will be much relief at least to start European morning trade.
As a reminder, circuit breakers for US indices and futures will kick in at 7%. The last time we got into that was back during the height of the Covid pandemic.
