Regional Reaction To Equity Market Fall Eyed

E-minis are garnering the early attention after the electronic re-open, with T-Notes and G10 FX in tight ranges.

• The 3 major U.S. e-mini contracts are lower than settlement levels, but aren't testing their respective Thursday lows yet. Regional reaction to Thursday's aggressive pullback on Wall St., which was tech driven, will be eyed, and may scupper the traditional quiet pre-NFP Asia sessions that we have generally witnessed in recent times. There was no overt trigger for the sharp shunt lower in U.S. equity markets on Thursday, but the overbought technical conditions, coupled with retail trading hoards and volatility market linkages were all touted. The truth is it was likely a mixture of all 3, in addition to some other, less traditional factors. There were some negative headlines for some of the tech giants later in the session, but the move had already happened by then. For some context, the S&P 500 has only moved back to levels seen last week, while the NASDAQ 100 is still up over 70% from its March trough.
• There is nothing in the way of tier 1 risk events evident on the Asia-Pac docket on Friday, so participants will look to broader market flows and headlines for direction.