S&P 500 Futures decline towards 3,600 amid mixed clues on covid vaccine

S&P 500 Futures drop for the third day after rising to three week high earlier in the week.
UK Government pushes for AstraZeneca’s fast-track approval after news of an extra trial.
Trump said the vaccine will be delivered starting next week.
Virus/vaccine updates and trade/political tussles among key economies should be watched amid a light calendar.

Anil Panchal FXStreet

S&P 500 Futures drops 0.30% to 3,617 amid the initial hour of Tokyo open on Friday. The risk barometer declines for the third consecutive day amid mixed signals over the coronavirus (COVID-19) vaccines. Also challenging the mood could be the fears of further escalation in the virus cases before the cure hit the floor.

The UK Government is pushing the Medicines and Healthcare Products Regulatory Agency (MHRA) to assess Oxford/AstraZeneca covid-19 vaccine for a temporary supply. The reason could be traced from the British drug manufacturer’s announcement on Thursday that they’re holding one more trial amid some production issues over the less-dosage vaccine.

On the positive side, US President Donald Trump said that the vaccine will be delivered from next week. It should be noted that the latest covid number from Texas and California have been worrisome.

Elsewhere, the US-China and the Washington-Tehran tensions have recently been challenging the optimists trying to cheer the vaccine hopes and the expectations of the US recovery backed by the new government team.

That said, the US 10-year Treasury yields drop 3.3 basis points (bps), to currently around 0.84%, whereas stocks in Asia-Pacific trade mixed.

Looking forward, a lack of major data/events can extend the previous day’s inactive mood, led by the US Thanksgiving Day. Though, fresh challenges to the risk can help the market trim earlier gains.

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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