S&P 500 Futures trim early Asian gains amid vaccine jitters, geopolitical risks

S&P 500 Futures step back from all-time high, stays mildly bid on intraday.
China roars back over Hong Kong, trade relations, Saudi Arabia intercepts Houthi missiles, drones.
Drama over Johnson & Johnson vaccine seems to ease but covid figures are rallying in India and test the bulls.
US-Russia tensions renew, American Retail Sales data eyed.

Anil Panchal FXStreet

S&P 500 Futures replicates Wall Street moves during early Thursday. The risk barometer initially rushed to the fresh record top above 4,100 before recently easing to 4,122, up 0.10% intraday.

Although economic recovery hopes join the expectations of US stimulus and the Fed’s optimism to back the market sentiment, recent challenges to risks may have probed the bulls.

Among them, warning from China’s top diplomats, over Hong Kong, battles Premier Li Keqiang’s hopes of economic cooperation with the US challenges the market optimism. Additionally, Saudi Arabian interception of Houthi missiles and drones, as well as the fresh US sanctions on Russia, also challenge the mood.

Amid all these plays, a pause in the US 10-year Treasury yield recovery as well as the US dollar index (DXY) bounce off three-week low gains major attention. Further, stocks in Asia-Pacific trade mixed whereas WTI regains $63.00.

Moving on, US Retail Sales for March and weekly Jobless Claims, not to forget Philadelphia Fed Manufacturing Survey for April will be the key to watch. Given the high hopes from the crucial US data, any disappointment won’t be taken lightly.

It’s worth mentioning that Wall Street failed to cheer Fed Chair Jerome Powell’s cautious optimism as well as upbeat comments from Beige Book as traders await US President Joe Biden’s $2.25 trillion infrastructure spending confirmation.

Read: US March Retail Sales Preview: Can a strong rebound ramp up inflation expectations?

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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