S&P 500: Futures fade initial upside as coronavirus fears regain momentum
- S&P 500 Futures recedes from the intraday high to revisit 3,100 area.
- Fresh virus data from China and Beijing probe the previous optimism of the Asian major.
- US-China political tussle, expectations of another stimulus from America confuse market players.
- Fedspeak, risk catalysts will be in the spotlight.
S&P 500 Futures for September seesaw around 3,100 during the initial hour of Tokyo open on Friday. The risk gauge earlier surged to 3,114.75 amid hopes of further aides from the US policymakers. Though, the latest figures from mainland China and Beijing weigh on the market’s trading sentiment.
With the policymakers from the US and China agreeing to keep the trade talks different from differences over Hong Kong and Xinjiang, the global markets took a sigh of relief during the early Asian session. The risk reset also gained support from the news suggesting US Democrats passing a mammoth $1.5 trillion infrastructure plan.
However, downbeat comments from US President Donald Trump and the latest increase in the coronavirus (COVID-19) numbers from Asian major refresh the risk aversion wave. On Thursday, Chinese diplomats cited the weakness in the daily data to say that the situations are under control in Beijing. The optimism now gets a hit as cases in mainland China and Beijing rise from the previous day.
Also negatively affecting the trading sentiment could be the surge in the pandemic numbers from the US states like Texas and Florida. Furthermore, downbeat BOJ minutes also weigh on the market mood.
Other than the S&P 500 Futures, Japan’s Nikkei 225 also steps back from the intraday top of 22,546 to 22,377, up 0.09%, by the press time. Even so, the US 10-year Treasury yields turn positive around 0.70%.
Looking forward, investors can keep checking further updates on the virus outbreak to ascertain the fears of wave 2.0. Additionally, comments from the Federal Reserve Chairman Jerome Powell, Dallas Fed President Loretta Mester and the policymaker Randal Keith Quarles will also be the key to watch.