S&P 500 Futures ease from record top as global policymakers fear covid infections

S&P 500 Futures extend pullback from all-time high as risks dwindle.
Biden fears jump in virus-led death, British diplomats push for border close.
EU eyes stricter lockdowns, Japan is said to have canceled the Olympics.
Flash PMIs from the UK, Europe and the US will decorate calendar, virus woes, stimulus updates become the key.

Anil Panchal FXStreet

S&P 500 Futures drop to 3,840, down 0.15% intraday, amid Friday’s Asian session. The risk barometer refreshed the record top before reversing from 3,859.62 the previous day. The pullback moves gained extra strength as politicians in the developed economies show fears of the coronavirus (COVID-19) spread and suggest further activity restrictions.

Read: Wall Street Close: Stocks continue on path of least resistance, chalk up fresh ATHs again

US President Joe Biden conveyed fears of a jump in the covid-led death toll to 500,000 next month to trigger the risk-off mood. The downbeat sentiment got a push from the US Centers for Disease Control and Prevention (CDC) Director’s doubts over the availability of vaccines in the pharmacies versus promised earlier by the Trump administration.

Also on the negative side are chatters over the UK policymakers’ push for the total border closure amid a jump in the virus-led deaths. Furthermore, The Guardian’s statements suggesting the European Union (EU) policymakers’ struggle to tame the pandemic also weigh on the mood. “Angela Merkel has warned of the danger of a third wave from the new variants of coronavirus, as EU leaders drew up a blueprint that could lead to a ban on travelers from the UK and restrictions on movement across the bloc’s internal borders,” said the news.

Read: Latest covid headlines in focus

Elsewhere, The Times came out with the news suggesting that Japan government has privately concluded Tokyo Olympics will have to be canceled because of coronavirus.

It should be noted that downbeat activity numbers from Japan and Aussie Retail Sales also dim the previous market optimism.

Amid these plays, Japan’s Nikkei 225 and Australia’s ASX 200 print mild losses while the US 10-year Treasury yields also pause the earlier rise around 1.11% by press time.

Moving on, global market players will wait for the preliminary readings of January’s activity numbers from the UK, the US and Europe for fresh impulse. However, risk catalysts are likely to remain sober and can disappoint commodities and equities.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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