Risk sentiment becomes more cautious as we begin the session

General risk sentiment remains more cautious following yesterday’s US CPI surprise.

Stocks: Generally flat to down for US, EMEA and Asia Pacific stock futures. We saw a marginal attempt to recoup some of yesterday’s post-CPI losses, but stocks remain cautious.

Commodities: A mixed bag right now with energy down, precious metals mixed with gold and platinum up while silver is down, and base metals also mixed with iron ore up but copper down.

Bonds: They are generally trading lower on levels 2, 5 and 10 this morning. This isn’t a surprise though after yesterday’s rise in US CPI, and we still have US PPI coming later in today’s session. Should be fun.

FX: Strangely, trading is more positive on the risk side, with NZD and AUD being the strongest of the session, while CHF is clearly underperforming. No intervention in sight despite USDJPY breaking to 153 earlier in the session.