S&P 500: Futures part ways from Wall Street gains amid risk reset

  • S&P 500 Futures snap two-day winning streak, recede from late-February high.
  • The escalation in the US-China tussle attack vaccine-led optimism.
  • China's GDP, ECB and US Retail Sales will be the key during the busy day.

S&P 500 Futures drop to 3,210, down 0.28%, during the initial hour of Tokyo open on Thursday. The risk gauge surged to the highest since February 25 on Tuesday amid increasing odds of the coronavirus (COVID-19) cure. Though, the latest developments on the Sino-American story pulled the sentiment index down after rising for two consecutive days.

The New York Times came out with the news suggesting that Trump administration is considering a sweeping ban on travel to the United States by members of the Chinese Communist Party and their families, according to people familiar with the proposal, a move that would almost certainly prompt retaliation against Americans seeking to enter or remain in China and exacerbate tensions between the two nations. Before that, White House Chief of Staff Mark Meadows announced the Trump administration’s study on national security risks emanating from Chinese apps like TikTok and WeChat.

On the other hand, China’s Global Times also showed readiness to engage in hand-to-hand combat with the world’s largest economy to safeguard ‘their’ city.

Before the latest rest, the market’s risk-tone remained upbeat over the multiple signals, from the US policymakers, UK scientists and companies like Moderna, favoring the vaccine’s nearby arrival. Also supporting the equities was increasing hopes of further stimulus from the global policymakers and weaker US dollar.

Against this backdrop, the Wall Street benchmarks managed to post another positive day while the US 10-year Treasury yields seem to pause their recent recovery moves around 0.63%.

While qualitative catalysts are likely to keep the driver’s keep, China’s Q2 GDP, monetary policy meeting by the European Central Bank (ECB) and US Retail Sales for June will be the key events to watch during the busy day. While most data suggest upbeat outcomes and could add strength to the market’s trading sentiment, fears of the escalation in the US-China tussle and the ECB’s anticipated dovish tone might guard the optimism.

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recovers towards 1.1750 as risk-on rules

EUR/USD is back around 1.1750 as upbeat US data fueled equities' early rally. Concerns about economic progress remain in the background, as the pandemic keeps taking its toll. 


GBP/USD bounces from 1.30 as demand for the dollar eases

Dollar's corrective advance seems complete, now down against most major rivals. GBP/USD trades little changed for a second consecutive day in the 1.3060/70 price zone. Market players continue to ignore upcoming Brexit chaos.


Gold: Interesting Fibonacci extension projects a move to $2500

Gold has risen 10.74% in the month of July, the biggest monthly increase since February 2016. As the price is breaking all-time highs it's hard to say where the yellow metal could end up.

Gold News

ETH/BTC skyrocketing, Bitcoin stays above $11,000

The cryptocurrency market is influenced by leveraged positions liquidation. Cryptocurrency experts expect further growth amid a global flight to safety assets. ETH/BTC hits the highest level since May 2019.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News