US stocks recover some ground

US equity markets recovered ground yesterday, with gains of around 2% across the main indices partially reversing Monday’s falls. It’s probably too early yet to say we’re out of the woods though – there was little follow through into Asian stocks overnight while the futures market currently points to a renewed fall in the US at its open later today

Bond yields reversed course as stocks rebounded, with US 10-year yields rising by almost 10bps to 2.80% (so, again, partially reversing Monday’s fall), and are likely to continue to take their cue from equity markets in the short-term at least

The euro fell further against the dollar for a time yesterday, trading down to a low of around $1.2320. It has recovered a little since but remains well off its highs (over $1.25) of late last week

Sterling also lost ground against the US currency – it’s now back to around $1.39 from last week’s high of almost $1.43 – but at just under 89p against the euro remains within its trading range (87p to 90p) of the past few months

Data due today includes Halifax house prices and the RICS housing survey in the UK