S&P 500 Futures step back from record top as US Treasury yields pare weekly loss

S&P 500 Futures print mild losses, probes intraday low amid market consolidation.
US–Russia tussles, vaccine news and Washington–Tokyo ties against China weigh on sentiment ahead of China data dump.

Anil Panchal FXStreet

S&P 500 Futures consolidate recent gains around 4,155, down 0.16% intraday, while easing from the all-time high on early Friday. The risk barometer benefited from strong US data the previous day but geopolitical risks seemed to have dragged the equity derivative off-late.

The US decision to slap sanctions on Russia over election interference and hacking recently gained major attention. However, US President Joe Biden firmly defended the move while saying to Russian President Vladimir Putin, per Reuters, “The US could have gone further with sanctions, but Biden chose not to do so.”

On a different page, US President Biden and Japanese Prime Minister Yoshihide Suga are up for a meeting in the White House around 13:30 GMT on Friday. The latest updates from the US Administration official, conveyed by Reuters, mentioned: “Biden and Suga to talk in-depth about China.”

Considering the American push to gather global support while battling with China, the Washington–Beijing tension is likely to escalate as the dragon nation recently warned the US over the role of Hong Kong and Taiwan matters.

Elsewhere, Bloomberg came out with the news suggesting the likeliness of an extended ban over the use of Johnson & Johnson’s covid vaccine by the US Centers for Disease Control and Prevention (CDC) when the officials meet next week. While the same may have a little impact on the US and the UK economies, due to ample jab stocks, Reuters' poll suggests the delay in the vaccinations as the biggest risk to the Eurozone economy.

Against this backdrop, US 10-year Treasury yields rose five basis points (bps) to 1.58% whereas stocks in the Asia-Pacific trade mixed by the press time.

It’s worth mentioning that the global equity markets cheered the strong US data on Thursday. Also joining the mood could be the downbeat performance of the American bonds.

Read: Wall Street Close: Strong US data propels all three key indices to fresh record high

Moving no, global investors may keep eyes on China’s data dump and the risk news for fresh impulse ahead of the US consumer sentiment figures for April.

Read: US Michigan Consumer Sentiment April Preview: Happiness is on the way

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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