- US 10-year Treasury yields extend Friday’s pullback from yearly top, S&P 500 Futures bounces off monthly low.
- Vaccine, stimulus updates battle fresh lockdown in New Zealand and downbeat China PMIs.
- US ISM Manufacturing PMI, risk catalysts should be watched carefully.
US bonds and stock future extend the latest shift in movement during the early Asian trading on Monday. In doing so, the 10-year Treasury yields dropped 6.8 basis points (bps) to 1.39% whereas the S&P 500 Futures print 0.70% intraday gains while defying the previous two-day downtrend.
Looking for the clues, chatters concerning the fiscal relief from the UK and the US governments join the coronavirus (COVID-19) vaccine news could be traced. After US President Joe Biden’s $1.9 trillion stimulus crossed the House to reach the Senate during Friday, talks spiraled that UK Chancellor Rishi Sunak will unveil five billion pounds of relief to the British business houses. It should also be noted that the Financial Times (FT) came out with the news suggesting Britain’s faster vaccine promises faster economic revival and fewer tax rises for the UK.
On the other hand, the US Food and Drug Administration (FDA) approved Johnson and Johnson’s one-shot covid vaccine for emergency use and helped the world to quickly overcome the pandemic.
Alternatively, New Zealand’s fresh lockdown, as well as fears of inflation, join the nine-month low of China’s NBS Manufacturing PMI to test the market optimism.
Although month-start activity numbers can offer immediate direction to traders, major attention will be given to the stimulus news and inflation headlines while following Treasury moves.
Read: US ISM Manufacturing PMI February Preview: Will business catch up with consumers?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.