- S&P 500 Futures fades bounce off monthly low.
- Covid numbers from Australia, UK pose serious threat to economic recovery from early wave.
- US Senators “not that far apart” over infrastructures spending ahead of procedural vote.
- WHO’s Tedros encourages Japan for Tokyo Olympics, suggests leading economies could bring pandemic under control in months.
S&P 500 Futures refresh intraday low to 4,313, down 0.05% on a day, while snapping the previous day’s recovery moves during early Wednesday.
In doing so, the risk barometer reacts to the worsening coronavirus conditions, as well as geopolitical jitters, to battle with the US stimulus hopes.
Australia’s key states witness a considerable jump, led by Queensland, and suggests the Oz nation is likely to remain shut for more days. It’s worth noting that over 50% of the country is under the virus-led lockdown following Victoria’s announcement the previous day. Elsewhere, Tokyo reported 1,387 infections on Tuesday after marking the first below 1,000 numbers in six days whereas UK’s covid cased jumped 41% between July 14 and July 20, per Reuters.
Even so, World Health Organisation (WHO) head Tedros Adhanom Ghebreyesus back Tokyo Olympics by also saying, per Reuters, “The world's leading economies could bring covid-19 pandemic under control in months.” “We are in the early stages of another wave of infections,” added the WHO Boss Tedros.
Also negative for the market sentiment are comments from Tokyo as US Deputy Secretary of State Wendy Sherman discusses issues with South Korea and Japan. “Trilateral coordination sends a clear message to North Korea that we are together, shoulder to shoulder,” said Reuters.
On the positive side, progress over the US infrastructure spending bill, ahead of today’s procedural votes, keeps markets hopeful of another stimulus. Recently, Democratic Senator Joe Manchin hinted that sides “Not that far apart” in infrastructure talks.
It should also be noted that the coronavirus variant fears challenge the economic recovery from the pandemic’s earlier wave and hence push the policymakers to keep the easy money flowing, which in turn backs the optimists.
Amid these plays, US 10-year Treasury yields struggle to defend bounce off February lows but the Asia–Pacific equities remain positive by the press time.
Looking forward, US Senate voting on President Joe Biden’s infrastructure bill and covid updates will be the key to follow for fresh impulse. Additionally, the earnings the optimism and actual results from the US companies should be watched as well.
Read: Wall Street Close: Benchmarks gain over 1.5% on earnings optimism, stimulus hopes
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
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.