S&P 500 Futures part ways from Wall Street's mild losses on mixed clues

S&P 500 Futures ignore downbeat performance of US equities, take the bids of late.
US President Biden prepared to send 20 million authorized covid jabs, China backs vaccine patent waiver.
Kaplan reiterates need for tapering talk, still expects first rate hike in 2022.
US data, Fedspeak keeps markets subdued ahead of Wednesday’s FOMC minutes.

Anil Panchal FXStreet

S&P 500 Futures portray risk-on mood with 0.28% intraday gains, around 4,170, during early Tuesday. In doing so, the risk barometer differs from the US equity benchmarks that flashed first negative daily performance in three the previous day.

While checking the catalysts behind the move, optimism surrounding the coronavirus (COVID-19) vaccine could be cited as the major reason for the latest risk-on mood. US President Joe Biden is, for the first time, ready to share the American authorized covid vaccine, around 20 million doses, with the needy nations. Further, China backs the global drive to abandon vaccine patents and fasten cure production. Also, updates that COVID-19 jabs from Moderna and Pfizer are capable of taming the Indian variant of the virus offer extra support to the market bulls.

Elsewhere, Dallas Fed President Robert Kaplan reiterated his push for tapering talks while also continues to expect the first rate hike in 2022. This contrasts with the Fed Vice Chair Richard Clarida’s comments rejecting the need for policy adjustments.

It’s worth mentioning that the US push for Israel-Palestine peace joins upbeat commodity prices to offer an extra hand to the market optimism.

On the contrary, US-China tussles and the continuation of Gaza tension, as well as worsening virus conditions in Asia and reflation fears, tame the bulls.

Amid these plays, the US Treasury yields pick-up bids and so do Asian stocks. However, the US dollar index (DXY) bears the burden of upbeat sentiment and drops to a fresh one-week low.

Looking forward, a light calendar, outside Europe and the UK, can keep troubling market players ahead of Wednesday’s Federal Open Market Committee (FOMC) minutes.

Read: Wall Street Close: Inflation jitters offer a dull start to the week

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.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

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.