CROSS ASSET: Risk Appetite Stabilizes, Eminis Oversold On RSI

Cross-asset sentiment has stabilized somewhat. Focus remains in the equity space. After being down 1%, US Eminis now sit -0.10% weaker (we did get back close to flat). Nasdaq futures are still down 0.35%, but likewise up from earlier lows. 

• There doesn't appear to be a fresh news flow/macro catalyst for this turnaround. Headlines so far today have focused on talks in the Middle East around the Ukraine conflict, but nothing concrete has emerged. US President Trump is also reportedly calling congress members to help avert a government shut down later this week.
• For Eminis the RSI (14) is now at 28.5, so in oversold territory based off this metric. This may have induced modest short covering, although the oversold condition has been threatened since late Feb, see the chart below.
• US yields are away from earlier lows, the 10yr back close to 4.18% (earlier we got to 4.15%). The USD has recovered some ground against the safe havens, with USD/JPY back above 147.00, but AUD and NZD losses have been pared.
• USD/CNH is sub 7.2450. Hong Kong equities have recouped some of the earlier losses seen (although the HSI is only modestly in the red). Mainland share markets are only down a touch, offering some outperformance.
• Bitcoin is back close to flat, while gold is also higher, while oil losses are back near flat. 

Fig 1: US SPX Futures - Oversold Based Off RSI (14)