The Nasdaq was under pressure early Friday in a broad based selloff, sparked by soft quarterly reports from both Amazon (AMZN) and Alphabet (GOOGL), said Dave Lutz, head of ETFs at Jones Trading.

In Europe, the DAX was down 1.8%, trading on lows as EU autos were 3% down after supplier Valeo dropped 20%, while financials fell over 2% as Deutsche Bank took out its 2018 lows, losing 4%. In London, the FTSE was at 2016 lows despite Airlines getting a boost from a rally in IAG. Banks were down over 1%, while only defensive sectors like staples traded flat.

Asia was also weaker overnight: the Nikkei fell 40 points, the Hang Seng lost 1.1%, Shanghai was off 20 points, the KOSPI fell small but KOSDAQ fell 1.8%. The Aussie managed to eke a gain with a surge in the closing auction.

A flight to havens pressured the 10Y yield under 3.08% and Bund yields to 6-week lows. Traders were starting to reduce tightening bets, with Fed Funds showing odds of at least 3 more hikes by June at 25%, down from 34% Thursday. The German-Italian bond spread was back out near 3.2% with Angst ahead of S&P’s Italy review today.

The USD is rallying ahead of US GDP data due Friday morning, while the weakness in the euro continued and sterling fell on Brexit angst. Focus was on the Renminbi hitting 9.9725, the lowest in 2 years.

Iron ore popped 1%, and rebar hit 6-week highs as stockpiles dwindled, but copper fell 1% in London, and gold held a bid, despite the rally in the dollar. The energy complex was weaker, with WTI back under $67 and natural gas falling 1.7%.