Trouble begins to brew for stocks again

<p>Equities are extending losses on the session now with US futures continuing to dribble lower. S&amp;P 500 futures are now down 0.4% with Nasdaq futures down 0.7% and Dow futures down 0.3% on the day.</p><p>On the surface, with bond yields tracking lower today, it looks like a risk-off wave is hitting markets. But I want to say that the bid in bonds appear to be more of a coincidence – at least in part – considering we saw 10-year yields in the US testing the key 4.30% mark yesterday.</p><p>Sure, China worries are a legitimate concern and I acknowledged the risks to that <a href="https://www.forexlive.com/news/china-concerns-continue-to-linger-in-the-market-20230816/" target="_blank" rel="follow">here</a>. But whatever the case might be, this is not a good look for equities whatsoever. If higher bond yields were weighing on sentiment before, lower bond yields as a result of global economic worries are also not supportive. Then, what else is there to work with for stocks at the moment?</p><p>In FX, the dollar is starting to inch ahead as well as it pushes to the highs for the day – even though the changes are still relatively minor. EUR/USD is down 0.1% to 1.0860 while GBP/USD is down 0.3% to 1.2705. The aussie is also at the lows for the day now, down 0.3% to 0.6385 against the greenback.</p>

This article was written by Justin Low at www.forexlive.com.