- S&P 500 Futures fails to extend previous day’s run-up, prints mild intraday losses.
- Covid strain from India, vaccine updates trouble traders but strong US Treasury yields stop bulls.
- Mixed data from China and Japan, Beijing’s restrictions on big techs add to the market confusion.
- Second-tier US data, risk news should be given priority.
S&P 500 Futures tease intraday low near 4,195 while stepping back from the all-time high flashed the previous day. In doing so, the risk barometer drops 0.20% amid the early Friday.
Mixed data from China and Japan seem to have recently weighed on the US equity derivative. While the dragon nation couldn’t flash another strong print of NBS Manufacturing PMI, Tokyo inflation figures jostled with upbeat industrial production and heavy unemployment rate from Japan to confluence markets.
Elsewhere, growing fears over the Indian-origin variant of the coronavirus (COVID-19) join AstraZeneca’s confusion for getting regulatory approval to weigh on the market sentiment. Additionally spoiling the mood could be China’s latest rules for technology companies and payment processors.
On the positive side, with faster vaccinations in the West, BioNTech’s hope of finding a cure to India’s ‘double-mutant virus’ and expectations concerning US President Joe Biden’s stimulus package seem to battle the bears.
Amid these plays, stocks in Asia-Pacific stay depressed while the US 10-year Treasury yields rise for the second consecutive day, up 1.1 basis points (bps) by the press time to 1.65%. However, the US dollar index (DXY) struggles to keep the previous day’s corrective pullback from a two-month low.
Given the mixed plays and sluggish markets, despite Wall Street’s upbeat performance, investors will pay close attention to risk catalysts ahead of the GDP figures from Eurozone and the US second-tier data.
Read: Wall Street Close: Mildly bid on upbeat earnings, US GDP, S&P 500 refreshes record top
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.