S&P 500 Futures drop over 1.0%, off two-month top, amid trade war fears

S&P Futures drops as US-China trade war fears join coronavirus worries.
Downbeat US data, a lack of virus cure and no strong sign of economy restart add to the risk-off sentiment.
Second-tier US data will decorate the economic calendar, qualitative catalysts remain as the major drivers.

Anil Panchal FXStreet

While stepping back from the highest since March 06, S&P 500 Futures drop 30 points to 3,872, down 1.10% on a day, during the Asian session on Friday.

The Futures linked to the US equity benchmark suggest the risk-off is gaining momentum after US President Donald Trump renewed US-China trade war fears. The Republican leader earlier mentioned that the US trade deal with China has been “upset very badly” by the coronavirus while his latest threats to use tariffs were harsh on the trade sentiment.

Also weighing on the market’s risk-tone could be NIKKEI forecast suggesting Japan’s GDP to recall World War II levels as well as signs of lockdown extension from the Asian nation.

Earlier, the ECB failed to take a bold move despite showing concerns over the coronavirus (COVID-19) carnage. On the economic front, Eurozone GDP and the US Jobless Claims, together with the Chicago Fed Manufacturing Index, flashed downbeat figures and added strength to the risk aversion. It’s worth mentioning that Wall Street benchmarks closed the April month on a negative side with near 1.0% losses on Thursday.

Amid all these plays, US 10-year Treasury yields seesaw around 0.63% whereas Japan’s NIKKEI begins the day with over 1.30% loss while declining below 19,900.

Given the fresh trade-war fears adding to the market’s worries, a light economic calendar in Asia will keep news/updates on the virus/trade on the driver’s seat.

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.