Negative Tinge To Start The Week

Flows remain defensive into European hours, with JPY sitting atop the G10 FX table, while the DXY index hovers around best levels of the day. E-minis print around session lows (with the S&P 500 contract unwinding its late Friday rally), with T-Notes/Tsys at best levels of the day. The unwind of positioning at (1 maybe 2) funds was seemingly at the centre of Friday's notable block sales in the U.S. equity space, with the story representing the dominant factor for markets overnight. While broader contagion seems limited, a couple of banks have outlined potential losses in the billions (given the default on margin calls by the fund (s)), giving overnight trade a negative tinge. Elsewhere, the Ever Given has been refloated in the Suez Canal, with Egypt suggesting the shipping channel may take around 1 week to clear. WTI & Brent sit the best part of $1.50 vs. their respective settlement levels.