S&P 500 Futures trim weekly losses amid quiet Asian session

S&P 500 Futures snap three-day downtrend with mild gains.
Multiple markets are off in Asia, Europe due to Eid, local holidays.
Vaccine updates battle challenges for easy money, covid woes.
Wall Street benchmarks slumped on US CPI, US Treasury yields rallied.

Anil Panchal FXStreet

S&P 500 Futures bounces off early April lows, marked the previous day, while picking up the bids to 4,073, up 0.35% intraday, during Thursday’s Asian session.

During the initial Asian session, the US Centers for Disease Control and Prevention (CDC), approved Pfizer's use of the covid-19 vaccine in adolescents age 12 and older, putting a fresh bid under the S&P 500 Futures. The risk-on mood extends afterward amid a light calendar and empty feeds. Even so, the investors remain cautious after the latest strong support to reflation fears.

The risk barometer dropped to the multi-day low, also flashed a three-day fall, after the US Consumer Price Index (CPI) rallied to the highest since 2008 on annual basis. The run-up in the headline inflation figures pushes the US Federal Reserve (Fed) towards tapering, not to forget mentioning the challenges it raises for US President Joe Biden’s future stimulus.

To defend the Fed's ideology, Vice Chair Richard Clarida and Atlanta Federal Reserve President Raphael Bostic tried to placate bears after the CPI release but failed. Also on the sentiment-negative side was CNN’s news that leading Democratic economist Larry Summers warned the White House on the ‘overheating’ issue, which in turn raises worries for the supporters of easy money.

Read: Wall Street Close: Benchmarks down over 2.0% as bears cheer US inflation outcome

It’s worth mentioning that Japan and New Zealand recently unveiled downbeat concerns over the coronavirus (COVID-19) conditions at home and border issues due to that respectively.

While there are several challenges for the latest risk-on mood, traders seem to wait for the US markets open for fresh impulse. During that session, the US Weekly Jobless Claims and Producer Price Index (PPI) may offer an intermediate direction to investors ahead of Friday’s key US Retail Sales and Michigan Consumer Sentiment Index.

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.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.