S&P 500 Futures stay mildly heavy near the July 31 low.
Policymakers from the Fed, RBA and the ECB have been dovish off-late.
US-China tussle adds to the risk-off mood amid a light calendar and off in Tokyo.
S&P 500 Futures drop to 3,270, down 0.10% on a day, during early Tuesday. In doing so, the equity derivative declines for the fifth consecutive day. It’s worth mentioning that the US stock gauge slumped to the lowest since July 31 the previous day as fears of the coronavirus (COVID-19) resurgence roiled the global markets.
Read: Wall Street Close: Benchmarks start off the week in the red
Having heard fears waning economic recovery from the European Central Bank (ECB) President Christine Lagarde and Germany’s Finance Minister Olaf Scholz, the risk barometer recently reacted to the downbeat comments from the Fed and the RBA members. Following the Fed Chair Jerome Powell’s pessimistic hearing of Testimony, the St. Louis President James Bullard also said that the Fed will be much less pre-emptive about hiking rates.
While being extreme, the RBA Deputy Governor Guy Debelle hinted towards the central bank intervention, either through bonds or FX, during his latest speech on "The Australian Economy and Monetary Policy" at the Australian Industry Group conference.
Elsewhere, US Secretary of State Mike Pompeo took helps from France, Germany and the UK to reject China’s claims of the South China Sea at the United Nations (UN). The troubled are joins Taiwan as the latest subject for the Sino-American tussles.
Against this backdrop, stocks in Australia, China, South Korea and Hong Kong are down near 1.0%, on an average, whereas New Zealand’s NZX 50 bucks the trend with 0.80% gains ahead of tomorrow’s RBNZ.
Moving on, the absence of major data/events in Asia can restrict any scope of change in the market mood, which in turn can keep favoring the safe-havens. Though, limited moves can be expected ahead of the US session where a few more of the Fed speakers, led by Chairman Jerome Powell, will entertain the market players.
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.