Filmed by Rod Fitzgerland. Produced by Vanessa Kortekaas.
Welcome to the FT Market Minute. Here's what we're watching in London on Friday morning. After a quiet start in Europe, the tide is turning a bit more bearish. The Euro Stoxx 600 index is down 0.4%. The dollar is turning higher against the euro and sterling, but it's softer versus the yen. And bond yields are nudging lower with benchmark treasuries at 2.44% and bonds of two basis points to 0.33%.
Now all those moves are classic signs of waning risk appetite. But we can forgive traders that caution. Wall Street will be closed on Monday for presidents day. So perhaps, some investors are wary about making bold bets into the long weekend. And if we're generous, we can describe Friday's action as consolidation after the Trump base reflation tried helped push global stocks to record highs this week.
Now US futures suggest the S&P 500 will dip a few points later New York, leaving the Wall Street benchmark a fraction of its record. Can it pound on from here? Well, the fourth quarter earnings season is winding down. So there's likely to be a little momentum from that corner. Perhaps, some meat on the bones of President Trump's tax policy will help. The question is, how much of that is already baked into valuations?