- S&P 500 Futures bounces off 3,132 to defy the previous day’s downbeat performance.
- US coronavirus cases crossed 3 million mark, numbers from Victoria recede while Beijing holds zero figure.
- China witnesses further hardships from the US but chooses to open a new national security office in Hong Kong.
S&P 500 Futures recovers from a two-day low while taking the bids near 3,147, up 0.30% on a day, during Wednesday’s Asian session. The US equity gauge took a U-turn from a three-week top the previous day amid the fears of the coronavirus (COVID-19) resurgence and escalation of the Sino-American tussle.
Read: US coronavirus cases rise to over 3 million: Are global markets are finally seeing the Grim-Reaper?
Virus numbers from the US continue to flash red signals with the latest addition in new cases refreshing a record above three million. Figures from California and Los Angeles County have also surged by over 10,201 and 4,015 respectively. Elsewhere, Victoria marked weakness in the numbers from 191 to 134 while Beijing bucked the trend with zero cases for the second day in a row.
Talking about the geopolitics, US Secretary of State Mike Pompeo raised bars for Chinese diplomat visas while also being in talks with other Trump administration members to undermine the Hong Kong dollar peg. Further, Australia warned citizens who travel to the dragon nation of arbitrary detention. Though, Chinese policymakers shrug off all to establish a new security law office in Hong Kong.
It should be noted that the fears of the virus resurgence and global tussles with the dragon nation portrayed a downbeat performance of Wall Street on Tuesday. Also marking the risk-off sentiment were the US 10-year Treasury yields that dropped 4.4 basis points (bps) to revisit the multi-week low, currently around 0.65%.
Given the qualitative catalysts’ dominance over the market mood, a light calendar is less likely to disappoint the market watchers. However, the optimists are likely to wait for a bit longer before retaking the reins.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.