US indices have dropped back overnight, confirming yesterdayâs rebound was a dead cat bounce in the wake of last weekâs selloff. Nothing has changed on the monetary side since Friday, but todayâs US service PMI reports may give another indication of how much pressure the Fed is under to advance its rate hike plans. Earnings reports continue to flood out although we are now in the phase where the calendar is dominated by a large number of reports from small and mid-cap companies which may impact their individual stocks and sectors but have a lesser impact on the broader markets. Todayâs news has been dominated by retailers so far, with Target and Coach potentially attracting the most attention and possibly heading in opposite directions. Base metals led by copper continue to climb again along with the Hang Seng overnight, indicating attitudes toward China remain positive even through its service PMI came in a bit soft. Crude oil continues to stabilize following last weekâs selloff while grains are falling back again today on anticipation of a good crop this year. In currency markets today, gold is trying to bounce back again but remains well short of the $1,300 round number barrier. USD continues to trend higher on anticipation of a less accommodative Fed going forward. SEK is outperforming on the back of better than expected Swedish service PMI. AUD is steady following last nightâs RBA meeting. CAD continues to weaken ahead of trade, PMI and employment figures later in the week. NZD could be active up to and through this eveningâs NZ employment report.