S&P 500 Futures entertain bears targeting 3,500 amid covid fears

S&P 500 Futures extend the previous day’s losses.
US, Japan register record daily coronavirus cases, Fed’s Powell, RBNZ’s Orr cool down vaccine hopes.
Virus updates will be important, US Consumer Sentiment Index decorates the calendar.

Anil Panchal FXStreet

S&P 500 Futures decline to 3,529, down 0.10% intraday, amid the initial hour of Tokyo open on Friday. The risk barometer marked the heaviest drop of the current month the previous day amid the fresh fears of the coronavirus (COVID-19). The mood remains grim as updates from Japan and New Zealand highlight pandemic woes.

During the early Friday in Asia, the Wall Street Journal said, “The US reports more than 150,000 daily coronavirus cases, the country’s seventh record mark for new infections in the last nine days.” On the other hand, Kyodo News mentioned Japan’s daily high of infections marked Thursday, around 1,600, reaches the early-pandemic days.

It should also be noted that Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr took sides with Federal Reserve Chairman Jerome Powell to chain the market bulls earlier cheering the vaccine hopes. Both the policymakers conveyed economic fears and poured cold water on recovery expectations.

Elsewhere, the Trump administration showed readiness to further clamp down the investments in Chinese companies after warning over the Hong Kong Security Bill on Thursday. China announced an indefinite ban on Victorian timber logs.

Not only the S&P 500 Futures but the US 10-year Treasury yields and stocks in Asia-Pacific also print mild losses by the time of writing.

Given the lack of major data/events in Asia, virus updates will be the key to watch ahead of the US Michigan Consumer Sentiment Index for November, expected 82 versus 81.8 prior.

Also read: Wall Street Close: COVID pandemic cases surging sink US stocks

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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