S&P 500: Futures defend 3K mark amid risk-off, eyes on Trump’s China speech
- S&P 500 futures lick wounds after the drop overnight.
- Cautious market mood weighs on the US equity futures.
- All eyes remain on Trump’s China announcement.
The futures on the S&P 500 index are nursing losses above the 3000 level, as the bears take a breather following the slump overnight.
The US futures reversed this week’s recovery mode and fell sharply, tracking the declines in the US indices after US President Donald Trump announced Thursday about the Friday presser on his response to China’s forceful advancement in Hong Kong’s security and civic liberties.
The tensions between the US and China ratcheted up last week after China proposed the National Security Legislation on Hong Kong, which was approved by the country’s parliament on Thursday.
The world’s two biggest economies were already battling out over the mishandling of the coronavirus outbreak by Beijing. Therefore, the Hong Kong issue has dampened the investors’ sentiment further. Markets continue to remain worried as the escalation could re-ignite the trade war between both countries.
Heading into the Trump’s presser due at 1800 GMT later in the NA session, the risk remains to the downside for the S&P 500 futures. Meanwhile, the US dollar also remains weighed down by the month-end liquidation play, offering little help to the stock futures.
Ahead of the presser, traders could also take cues from the US macro data releases for near-term trading opportunities.
Technical levels
Resistances: 3065.50 (multi-week high), 3100 (round figure) and 3137 (March high).
Supports: 3000 (psychological level), 2965.50 (May 27 low), 2927.48 (20-DMA).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
