Dust Settles After Monday's Risk Retreat

A mixture of developments battered risk appetite at the start to the week. Worsening coronavirus situation in several places across the globe provided one source of concern, with UK authorities moving to impose fresh curbs and U.S. death count eclipsing 200,000. Meanwhile, continued wrangling between the Democrats and Republicans over the nomination of the late Supreme Court Justice Ginsburg's replacement threatened to weigh on the already difficult fiscal talks within the U.S. In addition, a report by the International Consortium of Investigative Journalists pointed to a $2tn money laundering scandal, involving some of the world's biggest lenders.

• E-minis are oscillating around neutral levels after a poor showing from global equity markets on Monday. That being said, futures markets suggest that Asian stocks may feel the impact of a bad Wall St. session.
• T-Notes have stabilised after trimming earlier gains in NY hours and last trade unch. at 139-18. Aussie bond futures are rangebound, with YM +0.5 & XM +2.0 at typing. Japanese markets remain closed for a national holiday.
• G10 crosses are happy to hold tight ranges. AUD outperforms at the margin, without any clear headline catalysts underpinning the move.
• Focus in the Asia-Pac session falls on a speech by RBA Dep Gov Debelle and Australia's weekly payroll jobs and wages data.