S&P 500 Futures shrug-off covid woes to recover from two-week low

S&P 500 Futures consolidate the previous day’s losses.
Off in China, Japan joins pre-NFP cautious sentiment to trouble markets in Asia.
COVID-19 pessimism extends in Japan, Canada but vaccine optimism battles the bears.

Anil Panchal FXStreet

S&P 500 Futures print 0.18% intraday gains while picking up bids near 4,166 during early Wednesday. The risk barometer dropped to the late April lows the previous day but ignored the downbeat coronavirus (COVID-19) updates afterward.

Japan aims to extend the third state of emergency in Tokyo and surrounding prefectures beyond the May 11 deadline whereas Canada escalates virus-led activity restrictions in Alberta province as pandemic resurgence gains momentum. It should, however, be noted that the vaccine optimism conveyed by the UK, the US and the key pharma companies like Pfizer and BioNTech restrict the pessimism.

Read: Global Covid news updates: Markets looking elsewhere for a catalyst

Before the latest covid updates, Asian traders jostled with Pacific data and events after Wall Street benchmarks dropped amid risk-off mood. Market sentiment improved after US Treasury Secretary Janet Yellen reversed her initial comments backing the rate hike. Also on the positive side could be comments from Federal Reserve Bank of Minneapolis President Neel Kashkari while turns down the need for any action unless inflation surprises.

It’s worth mentioning that the global markets keep calm ahead of this Friday’s key employment figures, not to forget today’s US ISM Services PMI and ADP Employment Change. This in turn signals further sluggish days ahead.

Read: US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength

Even so, challenges to multinational companies, especially from the technology sector, seem to exert downside pressure on the US and global equities.

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.

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