While the markets are not as disorderly as they have been, the tone is fragile, and the animal spirits have been crushed.
fell more than 10% last week and dropped another 9.7% yesterday before rebounding by almost 6% today to be one of the few Asia Pacific equity markets to rise. The eked out a small gain, but the broader rose 2.6%. The rest of the regional markets extended recent losses. European bourses posted early gains, which were quickly reversed, and the Dow Jones is nursing a 2.4% loss in late morning turnover. US shares are flat.
Bond yields are mostly higher, with Sweden the main exception after it announced a large bond-buying program. The US yield is up around eight basis points to 80 bp.
The is riding high, gaining against most of the major and emerging market currencies. is off around 2.7% to extend the slide for a sixth consecutive session. is trying to stabilize, and the May WTI contract is straddling $29.5 a barrel.
After doubling the…