S&P 500 Futures trim early Asian gains as Treasury yields firm up

S&P 500 Futures fizzle upside momentum as risks consolidate.
US 10-year Treasury yield stay firm around February 2020 high marked on Friday.
Yellen tried to placate bond bears but failed, Biden praised talks with Asia-Pacific allies.
Vaccine optimism dwindles, China data came in positive, US Pres. Biden’s speech eyed.

Anil Panchal FXStreet

S&P 500 Futures ease from intraday high, currently up 0.10% around 3,936, amid early Monday. In doing so, the risk barometer fails to justify the recent pick-up in the US Treasury yields amid a quiet Asian session.

US 10-year Treasury yields regain 1.63%, highest since early February 2020, during the recent rise. The bond bears eased controls earlier in Asia after US Treasury Secretary Janet Yellen again rejected fears of reflation despite expecting a short-term run-up in rates.

Even so, upbeat comments from US President Joe Biden and AstraZeneca’s rejection of claims that the vaccine causes blood clotting to seem to favor the mood. Also on the positive side could be China’s upbeat Retail Sales and Industrial Production details suggesting the notable recovery in the world’s second-largest economy.

Furthermore, US stimulus and hopes of more fiscal relief join chatters that Tokyo is not looking for an extension of the virus-led emergency to add to the risk-on mood.

It should be noted though that US Secretary of State Antony Blinken’s visit to Asia, amid the fresh Sino-American tussle probe the risks.

Amid these plays, Asia-Pacific shares trade mixed whereas commodities stay mildly bid. Further, the US dollar index (DXY) keeps Friday’s recovery moves around 91.67.

Looking forward, investors will keep their eyes on US President Biden’s appearance on the ABC for fresh impulse amid a light calendar. Though, major attention will be given to this week’s FOMC meeting.

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.

EUR/USD struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.