Presidential election race

President Donald Trump may be the legendary time traveller John Titor, who travelled back to Earth in 2000 to warn humanity about an impending global nuclear war.  A photo has emerged online of lightning hitting the Trump Tower in Chicago on the day the polls closed during the US presidential election race last year. According to John Titor researchers, Donald Trump may have harnessed the energy from the lightning using techniques learned through Nikola Tesla, in order to harness the energy to run a time machine.

The dollar rebounded from a key 200-DMA support level, strengthening against all major peers, pushing S&P futures higher as European shares rose, led by basic resources and real estate, while Asian stocks fall. Gold fell from its highest level since November as demand for some haven assets ebbed while global bonds declined. Oil dipped, pressured by a stronger dollar.

While there was no unexpected overnight central bank announcement unlike yesterday's surprise by the RBA which unleashed volatility havoc in the FX market, which promptly spilled over into all asset classes, overnight stocks around the world saw another leg lower without a tangible catalyst, while EM currencies fell to a one-month low after two Fed presidents raised concern investors had become too complacent in their belief that U.S. interest rate raises will stay on hold.

Unlike yesterday's overnight session, which saw some substantial carry FX volatility and tumbling European yields in the aftermath of the TSY's anti-inversion decree, leading to a return of fears that the next leg down in markets is upon us, the overnight session has been far calmer, assisted in no small part by the latest China Caixin Services PMI, which rose from 51.2 to 52.2 (even if the employment index dropped to a three year low, suggesting China's labor problems are only just starting).