S&P 500 Futures wobble near one-week low amid fresh risk negatives

S&P 500 Futures catch a breather after successive declines in last two days.
US covid death toll crosses 250,000, Japan marks the biggest daily increase since early pandemic era.
EU eyes no-deal Brexit preparations, global policymakers criticize China.

Anil Panchal FXStreet

S&P 500 Futures print mild losses while taking rounds to 3,560/65 during the early Thursday. The risk barometer dropped to the lowest since November 13 earlier in the day after the coronavirus (COVID-19) updates roiled trading sentiment. Though, the equity derivative’s recent consolidation pays little heed to the fresh challenges to the risks despite Brexit updates and news concerning China.

New York announced fresh activity restrictions while closing schools for personal attendance amid the virus resurgence while Japan’s over 2,000 cases push policymakers towards the strictest alert levels in Tokyo. It should also be noted that South Australia announced the toughest lockdown measures to tame the deadly virus’ spread, as per ABC News. Alternatively, Pfizer announced a 95% effective rate while joining the league with Moderna to keep up the vaccine hopes. However, the World Health Organization’s (WHO) Emergencies Director Michael Ryan said Wednesday that it will take "at least four to six months" before vaccines are available in large numbers. As a result, vaccine hopes fail to defy the virus woes.

Other than the virus and vaccine news, the latest headlines suggesting the global ire over China’s stand in Hong Kong as well as the Brexit chatters also weigh on the risks. The US, Australia and the UK recently released a joint statement urging the Asian major to stop undermining the human rights of the people of Hong Kong while also respecting international commitments.

Furthermore, the European Commission is likely to be pushed for the no-deal Brexit preparations in today's European Union (EU) summit, per The Times. The bloc members like Netherlands, France and Belgium are cited in the piece as getting frustrated from the negotiations.

While the US stock futures print mild losses, stocks in Japan and Australia also follow the suit. Additionally, the US 10-year Treasury yields drop 2.5 basis points to 0.857% by press time.

Although the economic calendar has a few catalysts to watch, the EU summit and China’s response, together with the covid headlines, will be the key for the global markets.

Also Read: Wall Street Close: It is vaccine hopes vs lockdown pessimism, stocks sink

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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