- S&P 500 Futures refresh intraday low during the latest fall.
- Covid updates from Japan, New Zealand tease bears even as UK, US stay optimistic.
- Off in China, Japan troubles momentum traders amid a light calendar ex-Australia.
- Wall Street closed mixed on technology shares’ pullback.
S&P 500 Futures print the fresh low of the day as 4,173.12, down 0.30% on a day, during early Tuesday. In doing so, the risk barometer declines for the third consecutive day even as global economic majors recently sound optimistic.
The mild risk aversion wave could be traced to Japan’s Hokkaido (largest prefecture by area) that requested tighter activity controls as the coronavirus (COVID-19) conditions worsen at home. It should be noted that Japan’s number of patients with severe covid jumped to the record top the previous day. The virus conditions have already pushed the Asian major towards a third emergency in the key four prefectures including Tokyo before a few days.
It should be noted that the absence of RBNZ Governor Adrian Orr on Wednesday’s policy meeting also spread rumors that the Pacific nation’s central banker is infected with the deadly virus.
On the contrary, anticipated approval to the Pfizer-BioNTech covid vaccine for the age group of 12-15 years age group by the US Food and Drug Administration (FDA) battle the market bears. Also on the same line could be comments from the Fed policymakers and UK PM Boris Johnson, suggesting firm economic recovery.
It’s worth mentioning that Wall Street benchmarks began May on a mixed footing, despite risk-on mood, as technology giants like Tesla, Amazon, Alphabet and Facebook dragged Nasdaq 100. Even so, upbeat prints of ISM Manufacturing PMI kept the US equity traders positive although the gauge eased from a multi-year high.
Looking forward, covid updates and vaccine news, not to forget developments at the three-day meeting among the Foreign Ministers of the Group of Seven industrialized nations (G7), will be the key ahead of the US Goods Trade Balance and Factory Orders for March.
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