- S&P 500 Futures stays depressed near monthly low, flashed the previous day.
- Wall Street kept the red despite upbeat US Treasury yields.
- Israel-Palestine tussle, mixed covid vaccine updates add to the risk-off mood.
S&P 500 Futures take offers around 4,135, down 0.25% intraday, during the early Wednesday. The risk barometer dropped to the lowest since early April the previous day as market sentiment worsened ahead of the key US data.
The risk-off mood gets support from the escalating geopolitical tensions in the Middle East as well as mixed updates concerning the coronavirus (COVID-19) vaccines and a light calendar.
The United Nations (UN) pushed for peace at Gaza strip but the tussle among the old enemies continues afterward. On the other hand, Bloomberg terms China’s sinovac covid vaccine as “effective in real-world study” whereas the US Centers for Disease Control and Prevention (CDC) found 23 blood clotting issues linked to the Johnson & Johnson jabbing.
An absence of the key data/events in Asia becomes an extra reason for the market players to extend the previously sour sentiment.
It’s worth mentioning that the Wall Street benchmarks flashed another day in the red on Tuesday. The Dow Jones Industrial Average (DJIA) posted the heaviest drop in seven weeks even as Nasdaq reversed most of the day’s losses after technology shares took a U-turn.
Read: Wall Street Close: Dow drops the most in seven weeks to end the volatile day
Shares in Asia-Pacific copy the moves of S&P 500 Futures while the US 10-year Treasury yields struggle for a clear direction around 1.62% after rising two basis points (bps) the previous day.
Although the economic calendar turns active during the European session, investors are less likely to behave to the ‘normal’ data reading, which matches the market consensus, ahead of the key US inflation figures for April, expected 3.6% YoY versus 2.6% prior. Herein, any hints that the latest run-up in prices could be temporary should buoy the sentiment.
Read: US Consumer Price Index April Preview: The two base effects of inflation
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 hovers around 1.0600 with a positive bias as US Dollar faces profit-taking selling
EUR/USD remains steady with a positive bias, hovering around 1.0600 during Tuesday's Asian trading hours. The upbeat sentiment surrounding the pair is likely driven by a softer US Dollar (USD), as profit-taking follows its recent rally.
GBP/USD trades with mild positive bias on softer USD, remains below 1.2700 mark
The GBP/USD pair attracts buyers for the second straight day on Tuesday amid a modest US Dollar (USD) downtick and climbs back closer to the 1.2700 mark during the Asian session. Spot prices, however, lack bullish conviction as investors opt to wait for the Bank of England's (BoE) Monetary Policy Report Hearings before placing aggressive directional bets.
Gold could run into sellers at $2,655 on the road to recovery
Gold price extends the recovery into Asian trading on Tuesday, reversing half the previous week’s decline. The focus remains on the upcoming speeches from US Federal Reserve (Fed) policymakers and geopolitical tensions between Russia and Ukraine.
Bitcoin could see another parabolic run following rising institutional interest
Bitcoin (BTC) began the week positively, rising over 3% above the $91K threshold on Monday. Despite the recent rise, BTC could begin another extended bullish move as top firms are increasing their Bitcoin holdings and potentially adopting it as a reserve asset.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.