S&P 500 Futures, US Treasury yields dwindle amid China’s return, mixed vaccine news

S&P 500 Futures stay unchanged after recent pullback, US 10-year Treasury yields extend previous day’s pullback from one-year high.
China markets resume trading after one-week-long Lunar New Year holidays.
Doubts over the vaccines to tame covid strain battle jump in immunization and US stimulus hopes.
FOMC minutes helped Wall Street benchmarks to trim initial losses while closing mixed.

Anil Panchal FXStreet

As Chinese traders kick-start the year of Ox, global risk catalysts dwindle on early Thursday. Also negatively affecting the mood could be the mixed signals from media concerning the key vaccines’ ability to tame the coronavirus (COVID) emanating from South Africa.

While portraying the sentiment, S&P 500 Futures drop 0.07% to 3,925 whereas the US 10-year Treasury yields decline 3.2 basis points (bps) to 1.0267% by press time.

Global markets got multiple fresh catalysts that Chinese traders will have to digest before tracking the old catalysts. Among them, the increase of odds favoring the US covid stimulus to arrive in next month as well as the vaccine optimism at the UK and America plays a major role.

Also on the positive side could be the reduction in the COVID-19 infections and death toll which triggered chatters surrounding the economy unlock in Australia, New Zealand and the UK. However, Japan remains worried and prefers extending emergencies.

It’s worth mentioning that the Sino-American tussle may escalate as US President Joe Biden criticized China on Wednesday while suggesting Beijing’s position on Taiwan, Hong Kong and Uyghur Muslims.

On the other hand, the CNN news suggesting the capacity of Pfizer and Moderna to tame the covid variants from the UK and South Africa conquers Reuters’ piece quoting Pfizer while saying, South African variant could significantly reduce vaccine protection.

It should be noted that the global economic calendar remains light after the FOMC minutes reiterated the need for easy money and the US Retail Sales helped the greenback the previous day. As a result, risk news/events will be the key, which in turn highlights virus, vaccine and geopolitical headlines for fresh impulse.

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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