S&P 500 Futures ease from six-week high as Treasury yields refresh multi-day top

S&P 500 Futures snap six-day uptrend to print mild losses around September high.
US 10-year Treasury yields rise for the fifth consecutive day towards May’s top.
Fed tapering chatters, China’s Evergrande consolidate market moves amid a quiet Asian session.

Anil Panchal FXStreet

S&P 500 Futures portray the market’s cautious mood, down 0.18% intraday around 4,520 during early Thursday.

The risk barometer takes clues from the hawkish comments of the US Federal Reserve (Fed) policymakers and updates surrounding China’s struggling reality firm Evergrande to print mild losses, the first in the last six days.

Tapering signals from Federal Reserve Governor Randal Quarles and Cleveland Fed President Loretta Mester have been the latest to pump the US 10-year Treasury yields, probing the equity bulls. That said, the US 10-year Treasury yields remain firm around 1.66%, up two basis points (bps) to refresh the highest levels since May.

Also challenging the mood were the headlines concerning Evergande. Earlier in Asia, it was revealed by Bloomberg that Evergrande failed to seal the asset sale deal with Hopson Development Holdings. The firm’s shares are ready to go live in Hong Kong for the first time after October and hints at an over 10.0% fall in the beginning.

Elsewhere, China’s two hypersonic weapon tests also should have weighed on the equity futures while the Wall Street benchmarks flashed gains on upbeat earnings and hopes of US stimulus.

Read: US Stocks Forecast: Wall Street mixed as US yields take the spotlight

It should be noted that the US Dollar Index (DXY) fails to benefit from the consolidation in the market sentiment, printing a seven-day downtrend around 93.55 near the three-week low by the press time.

Moving on, the risk catalysts may entertain traders amid a light calendar ahead of the US session readings comprising weekly jobless claims and second-tier housing data, not to forget Fedspeak.

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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