- Market sentiment dwindles as traders seek fresh clues over Russia-Ukraine issues, Fedspeak turns softer of late.
- S&P 500 Futures part ways from Wall Street, Japan holiday stops US Treasury bond moves.
- Light calendar keeps risk catalysts on the driver’s seat.
Risk appetite improves during the mid-Asian session on Wednesday as traders jostle over the odds of Ukraine diplomacy and the latest Fedspeak.
On late Tuesday, the US ruled out the scope of a summit between US President Joe Biden and his Russian counterpart Vladimir Putin. On the same line were comments from US Secretary of State Antony Blinken’s rejection of the need for Thursday’s meeting with Russian Foreign Minister Sergei Lavrov.
However, US President Biden’s comments like, “We have no intention of fighting Russia,” seem to have played the role of turning down the fears of a full-fledged war between the West and Moscow. Additionally, comments from Japan’s Prime Minister (PM) Fumio Kishida, calling on Russia to return to diplomatic means, also allow bears to take a breather.
While portraying the mood, S&P 500 Futures consolidate recent losses with 0.55% intraday gains around 4,235 while the US Treasury yields remain inactive, due to off in Japan, at around 1.94% after rising around 2.0% daily in the previous day. It’s worth noting that Wall Street kept the red by the end of Tuesday’s North American trading session.
Read: Stock bounce likely to be temporary
It’s worth noting that strong US data and geopolitics might have weighed on the US equities as the Treasury yields rebounded during the late hours of Tuesday. However, comments from Atlanta Fed’s Chief Executive Officer (CEO) Raphael W. Bostic seem to have helped the equities afterward.
Fed’s Bostic said, “Fed is going to "let the data guide us" in upcoming decisions.” The policymaker’s comments were in line with Monday’s statements from Federal Reserve Board Governor Michelle Bowman who mentioned, “It is too soon to tell if the Fed should hike 25 or 50bps in March.”
Given the light calendar and the market’s indecision over the next moves concerning Russia, even as the latest Western sanctions challenge the sentiment, investors and traders may witness sluggish moves on Wednesday. Though, geopolitical headlines are the key to observe.
Also read: Gold Price Forecast: XAU/USD hovers around $1,900 as Russia-linked woes escalate
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