Summary

• The S&P and Nasdaq are poised gap lower, and South Korea’s Kospi dropped 10% today (still up nearly 95% for the year). The risk-off has pushed yields lower and the dollar higher.
• The euro has been sold to new lows for the year today, slightly below $1.1400. The intraday momentum indicators are stretched, but previous support in the $1.1420-25 area may now offer resistance.
• The yen is the only G10 currency holding its own today as Japan’s finance minister has played up talks with US Treasury Secretary Bessent.
• Sterling was resilient in the face of the political drama that will lead to the seventh UK prime minister in a decade. It is trading softer today but within yesterday’s range.
• The heavy tone in the S&P and Nasdaq seemed to weigh on Asian and European equities today. Most of the large bourses in Asia-Pacific fell by 2-3%, but Kospi was tagged for 10% and Nikkei tumbled 3.5%. Europe’s Stoxx 600 is off almost 0.80%, which, if sustained, would be the largest drop since mid-May.

The markets have weathered the US tariffs and war in the Middle East. A new disruption has emerged - unwinding tech investment. The S&P and Nasdaq are poised gap lower, and South Korea’s Kospi dropped 10% today (and is still up nearly