- S&P 500 Futures snap seven-day uptrend with mild intraday losses.
- Market sentiment benefited from US data on Friday.
- Covid woes, downbeat China data probe bulls as US cheers extended weekend.
S&P 500 Futures consolidate the recent gains around 4,335, down 0.15% intraday, during early Monday. In doing so, the risk barometer registers losses for the first time in eight days amid a subdued market and an off in the US.
The reason could be traced from the coronavirus (COVID-19) woes in Asia-Pacific as well as doubts over the Fed’s next moves. Also contributing to the dull mood is Chia’s Caixin Services PMI that dropped to the lowest in 14 months during June.
Australia continues to suffer from the Delta variant of the virus amid local lockdowns covering over 50% of the population. The latest updates suggest a sustained increase in the covid numbers in Sydney, Queensland and New South Wales (NSW) versus no new covid cases in Victoria. The same propels the new cases by 46 so far during July 05 versus the previous day’s 22 cases. It’s worth noting that Indonesia is under emergency from July 02 to July 20 while Malaysia and Thailand also suggest the pandemic’s resurgence of late.
On the other hand, China Caixin Services PMI for June dropped to 50.3, the lowest since May 2020, from 55.1 expected and 55.7 prior. Elsewhere, the second-tier data from Australia and New Zealand came in mixed.
Global markets buoyed the previous day after the US jobs report for June flashed mixed signals. The headline Nonfarm Payrolls (NFP) jumped past the 700K forecast and upwardly revised 583K prior. Though, an uptick in the Unemployment Rate to 5.9% from 5.8%, versus 5.7% market consensus, coupled with no change in Participation Rate of 61.6%, troubled the analysts in predicting the Fed’s next moves. However, an extended holiday in the US keeps traders confused and weighs on the mood afterward.
Moving on, the covid updates and indirect signals of the Fed and/or the ECB policy moves could entertain market players amid the likely dull day ahead.
Also read: Market turning points
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