The Bleeding Has Stopped For Now

Yesterday's close marked the worst 8-day stretch for stocks since November 2011, but it looks like the bleeding in global markets has stopped for now.

The S&P 500 is up 0.6% in early trading, and the yield on the 10-year note is 2.62%, 4 basis points above yesterday's close.

Meanwhile, gold is in the red, and the dollar is gaining against the euro and the yen, while emerging-market currencies are strengthening against the dollar. European indices are rallying as well, with the exception of the German DAX.

"Valuations between safe-haven and risk assets have adjusted so quickly that safe-haven assets may once again be deemed by investors as 'imperfect substitutes' for other, riskier and now-cheaper asset classes like global stocks or EM debt," say William O'Donnell and Gabriel Mann, interest rate strategists at RBS.

There was relatively little in the way of new economic data from developed markets in Asia and Europe today. At 10 AM, we get December factory orders data in the United States.

The charts below show action in various markets this morning. Across the top from right to left are the S&P 500, the dollar-yen exchange rate, and the euro-dollar exchange rate. Across the bottom are gold futures, 10-year Treasury note futures, and the dollar-Turkish lira exchange rate.