Equity markets have started the day on the back foot with ES Futures falling below the psychologically important 2800 level.

Yesterday, markets were weak and closed the day lower over concerns on global growth. The main issue recently as I’ve mentioned previously has been the inverted yield curve and the buying of longer-dated bonds.

This morning it appears that the selling is a bit of follow through from yesterday, with not much else floating around by way of news.

FED speaker George, did speak late US time (early in Asia), and mentioned that there was still some downside risks to the economy and that they would likely take a wait and see approach on rates.

She did make some positive comments, including the fact that he felt the fundamentals were still sound and he expected jobs to rebound.

The interesting point that I saw was the she suggested that the FED might not focus too heavily on the inflation target and give a bit of wiggle room either side.

That isn’t particularly hawkish from a FED speaker and really adds to what we have been hearing coming out recently. Nevertheless, not too strong for the US economy.

Today’s Events

The main event of the day is US GDP, which all the eyes of the world will be focused on. Later in the session there is US home sales data and jobless claims to look out for.

The state of jobs in the US has probably been one of the pillar of strengths of recent times with the exception of last month. But that also included some Government shutdown issues as mentioned by the FED’s George.

Price has really been holding above 2800 quite well, that would suggest the bulls are still in control. They certainly still are until proven otherwise.