- S&P 500 Futures drop for the eighth consecutive day as bears eye 3,400.
- Hopes of US stimulus fade, Russia/Iran meddle in the American presidential election.
- COVID-19 woes join doubts over soft Brexit to challenge the earlier risk-on mood.
S&P 500 Futures stay heavy around 3,413, down 0.55% intraday, during Thursday’s Asian session. In doing so, the risk barometer nears the fortnight low flashed the previous day as trade-positive catalysts step back whereas the fresh challenges to the market optimism pop-up.
Among the fears of the negative of geopolitical tension between the US and Russia as well as Iran take the front seat. As per the recent updates from the US Federal Bureau of Investigations (FBI), Iran and Russia interfered with the American presidential elections, up for the next month. This will not only strain the relations between the US and the rest two countries but will also help President Donald Trump to gain some bids in the polls. The same disappoints markets as Democrats are perceived to spend more than the Republicans if they completely wash the opposition in the US elections.
Second, to that, the receding expectations concerning the much-awaited American coronavirus (COVID-19) aid package also challenge the market’s mood. Although US House Speaker Nancy Pelosi and White House Chief of Staff Mark Meadows sound optimistic in their latest comments, US Senate Majority Leader Mitch McConnell hasn’t approved of Trump’s push for early relief before the elections.
It’s worth mentioning that the COVID-19 woes are getting stronger outside the epicenter Europe during its second wave. The latest update suggests more than half of the US states register monthly record in the new cases whereas Australia’s Victoria also marked five new numbers of the pandemic while breaking the 14-day average.
Furthermore, wide differences between the UK and the European Union (EU) over thorny issues like fisheries, level playing field and governance are also likely to challenge the market optimism backed by the recent resumption of the Brexit talks.
Not only the US stock futures but stocks in Asia-Pacific are also downbeat, though marking lesser than 1.0% loss, while the US 10-year Treasury yields halt their run-up beyond 0.80% at the time of writing.
Looking forward, traders will pay close attention to the virus updates and stimulus news for fresh direction whereas political news can also offer additional information for the near-term trade direction.
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 hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.