European indices are lower but not seeing as heavy losses as US futures though for now. The DAX is still up 0.1% with the Eurostoxx and CAC 40 both down by only 0.1% so far. But the UK FTSE is down 0.5% while the IBEX is down 0.3% on the day. The main drag though is in US futures, with S&P 500 futures now down 0.5%.

There’s not much news driving the drop as it appears to be selling flows coming in as European traders enter the fray. Nasdaq futures are also marked down by 0.6% while Dow futures are lower by 0.4% currently. So, the selling isn’t just solely tech-related.

If anything, this could relate to some month-end rebalancing flows. Bonds are keeping slightly bid still, with 10-year Treasury yields down 2.4 bps to 4.291% on the day.

As equities stumble, the dollar is still finding itself more bid so far on the session. EUR/USD is now down 0.4% to 1.0798 while GBP/USD is down 0.5% to 1.2625 currently.

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