fxs_header_sponsor_anchor

News

S&P 500 futures turn south, resurfacing coronavirus fears put 3,000 at risk

  • Coronavirus 2.0 fears negative upbeat China PMI led optimism.
  • Partial lockdowns in Australia, UK dampen market mood.
  • Negative US stock futures suggest a weaker open on Wall Street.

Having consolidated Monday’s rebound around 3,050 levels in the Asian trades this Tuesday, the S&P 500 futures broke the range trade to the downside, as the fears over the second-wave of coronavirus resurfaced and dampened the risk sentiment in Europe.

The market mood turned sour after headlines hit the wires that the Australian state of Victoria imposed fresh four-week lockdown in 10 areas, in light of the double-digit increase in the virus cases.

Further, the reports that a lockdown was imposed on the English city of Leicester, following a local flare-up of infections, also aggravated the risk-on mood and weighed on the higher-yielding assets such as the European equities, US stock futures, oil etc.

At the time of writing, S&P 500 futures shed 0.35% to trade near daily lows of 3,030.38 while the European equities trade with caution amid no improvement in the Eurozone core CPI figure.

Earlier in the Asian session, the benchmark US stock futures made several attempts to extend the recovery gains above the 3050 level, helped by the upbeat Chinese Manufacturing PMI data and quarter-end adjustment flows.

Looking ahead, a likely negative opening on Wall Street combined with discouraging US virus stats will continue to keep the futures under pressure. A test of the 3,000 mark cannot be ruled out if the Fed Chair Jerome Powell voices caution in his testimony later in the NA session. The US macro data will be also closely eyed for fresh trading incentives.

S&P 500 futures technical levels

The recovery momentum could likely pick up pace only above 3050, opening doors towards the next resistance at 3071.30 (10-DMA). While to the downside, the 200-DMA at 3027 offers immediate support, below which the 3000 mark (50-DMA/ round number) will be tested.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.