European stocks are now trading higher on the day, posting slight gains while US futures have also turned around deep losses to be in positive territory at the moment. S&P 500 futures are up 0.1% after being down by as much as 0.7% earlier while Nasdaq futures turned around a 1% drop earlier to be up 0.2%.
The mood shift has seen the dollar and yen slip in European morning trade, as commodity currencies start to edge ahead.
AUD/USD and NZD/USD are both up 0.4% to near session highs, with the former up to 0.7210 and the latter up to 0.6797. Of note, USD/CAD is breaking lower to 1.2475 and testing yet another break of its 200-day moving average:
The loonie’s bid is also helped by higher oil prices, with WTI crude up to $86.70 after a bit of a retreat back to $86.00 earlier.
Higher yields are still very much in play but dip buyers in equities are starting to strut their stuff a little so far. We’ll see if that can keep up and if it does, that could mark a good change in fortunes for stocks for the remainder of the week.