US index futures rose higher into record territory, as European stocks pared muted gains after the EURUSD rose above 1.17, pressuring exporters, while Asian shares were broadly higher, but the main theme of the session was another day of USD weakness.
Billionaire "vulture" investor Paul Singer is set to take full control of Italy's most famous football club AC Milan after its owned, Chinese businessman Li Yonghong failed to make a payment on a loan owed to Elliott Management.
While global markets remain largely a sea of green, ignoring the threat of a trade war between the US and the rest of the world the move higher has been more muted overnight as some familiar risks have re-emerged.
The overnight session was already in a festive, risk-on mood with global market a sea of green, when the news hit that North Korea is ready to denuclearize "if the regime safety is assured", which sent futures to session highs, the dollar sliding, the USDJPY spiking and 10Y yields surging to 2.895%.
Asian bourses and European shares fell after surprisingly bad Chinese PMI and Japanese econ data added to a perceived hawkish tilt in Fed policy emerging from Chair Powell's testimony, however a rebound in US equity futures has pushed the S&P back into the green.
For the fifth month in a row, the US trade balance went deeper into deficit (if the advance data holds), hitting a larger than expected -$74.4bn in January - the biggest deficit since July 2008 (in the middle of the last recession).
The global selloff that started on Monday, resulting in the biggest drop in US stocks since September, accelerated overnight and this morning world stocks and US equity futures are a sea of red, even as the US dollar has resumed its drop.
The recent frantic moves in Treasurys and the dollar continued on Monday, and while the dollar collapse seems to have slowed for now, this is as a result of an acceleration in the Treasury selloff, with 10Y yields blowing out.