Risk stays on the defensive so far on the day | Forexlive

Easy come, easy go. After yesterday’s gains, stocks are giving a chunk of that back today ahead of the US non-farm payrolls later today. There are a couple of moving parts, so let’s try to sort things out.

1. Apple and Alphabet reported misses on earnings after the close and that is weighing on tech sentiment; Nasdaq futures down 1.5%
2. European bond yields recover slightly from yesterday’s drop as ECB policymakers talk up more rate hikes after March; 10-year German bund yields up 8 bps to 2.14%
3. A further cooling of the US jobs data later could bolster the narrative of a less soft landing, especially as the Fed keeps its resolve to tighten rates further

It’s pretty much a case of pick your poison but I wouldn’t rule out a turnaround in sentiment later in the day as Wall Street enters the fray. After all, the technicals are still supportive although we are seeing the S&P 500 near key resistance from its 100-week moving average: