S&P 500 Futures remain pressured around 4,200 on firmer US Treasury yields

S&P 500 Futures struggle for clear direction after two-day downtrend.
Traders await fresh clues on full markets’ return, Fed and stimulus.
US ISM Manufacturing PMI becomes the day’s key data.

Anil Panchal FXStreet

S&P Futures seek guidance as sellers take a breather around 4,200 after two consecutive days of dominance. Fears of strong inflation in the US directing the Fed towards tapering weighed on the market sentiment previously. However, hopes of further stimulus seem to probe the bears of late.

US President Joe Biden stretches the $1.7 trillion infrastructure spending plan discussions to June even as Republicans previously lashed out his tax-hike plans. Also on the market-positive side could be the $6.0 trillion multi-year budget, as well as an upward revision to the US GDP forecasts for the FY 2021-22.

It’s worth noting that the reduction in the coronavirus (COVID-19) woes in Asia and a steady vaccination drive in the West add to the market’s optimism.

On the data front, China’s Caixin Manufacturing PMI followed the footsteps of the official NBS Manufacturing PMI while staying near to the previous level of 51.9, at 52.00 in May.

Amid these plays, US Treasury yields jump three basis points (bps) to 1.62% but fail to put a safe-haven bid under the US dollar by the press time.

Moving on, investors will keep their eyes on the US ISM Manufacturing PMI figures, expected to repeat 60.7 figures, amid hopes to find early signals of Friday’s Nonfarm Payrolls (NFP) as well as confirming the recent reflation fears.

Read: ISM Manufacturing PMI Preview: NFP Hint? Inflation component to steal the show, rock the dollar

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.