Risk appetite remains unclear as the thin presence of traders due to the Easter Monday holiday joins the risk-negative headlines from China, as well as the cautious mood ahead of the key US data/events.

Taiwan President Tsai Ing-wen’s US visit triggered a fresh bout of US-China woes as Beijing conducts strong military drills near Taiwan Strait. “China's military simulated precision strikes against Taiwan in a second day of drills around the island on Sunday, with the island's defense ministry reporting multiple air force sorties and that it was monitoring China's missile forces,” reported Reuters.

It’s worth noting that Russia and North Korea’s warnings to use nuclear weapons are extra catalysts contributing to the risk-off mood.

On the same line are fears of global recession, inflicted by the US, amid downbeat US data and easing global hawkish talks.