Here's what we're watching in London on Thursday morning.

Well, we're seeing a bit of a stall in the reflation trade.

After FTSE All-World Equity Index to fresh intraday record in Asian trading,

a spot of profit taking in Europe is taking place.

But let's keep this in perspective.

Moods are mild and futures still suggest Wall Street will open Thursday session around record levels.

Still, bond yields, which jumped higher in recent sessions following supposedly hawkish comments

from Fed Chair Janet Yellen and some strong US data,

are pulling back a few basis points today.

The dollar is also nudging lower as the Euro, Pound, and Yen see mild gains.

Industrial commodities are easing back, and gold is firmer.

Now whether all this marks the CREST of the latest bull then, or merely a pause of consolidation, we must wait and see.

It was interesting what happened on Wall Street in the previous session,

as the February VIX futures contract expires,

the main VIX, which measures expected volatility for the S&P 500, jumped more than 10%.

This happened to even as stocks were having a good day.

It rather suggests investors of becoming more worried about protecting their portfolios.