- S&P Futures drops as US-China trade war fears join coronavirus worries.
- Downbeat US data, a lack of virus cure and no strong sign of economy restart add to the risk-off sentiment.
- Second-tier US data will decorate the economic calendar, qualitative catalysts remain as the major drivers.
While stepping back from the highest since March 06, S&P 500 Futures drop 30 points to 3,872, down 1.10% on a day, during the Asian session on Friday.
The Futures linked to the US equity benchmark suggest the risk-off is gaining momentum after US President Donald Trump renewed US-China trade war fears. The Republican leader earlier mentioned that the US trade deal with China has been “upset very badly” by the coronavirus while his latest threats to use tariffs were harsh on the trade sentiment.
Also weighing on the market’s risk-tone could be NIKKEI forecast suggesting Japan’s GDP to recall World War II levels as well as signs of lockdown extension from the Asian nation.
Earlier, the ECB failed to take a bold move despite showing concerns over the coronavirus (COVID-19) carnage. On the economic front, Eurozone GDP and the US Jobless Claims, together with the Chicago Fed Manufacturing Index, flashed downbeat figures and added strength to the risk aversion. It’s worth mentioning that Wall Street benchmarks closed the April month on a negative side with near 1.0% losses on Thursday.
Amid all these plays, US 10-year Treasury yields seesaw around 0.63% whereas Japan’s NIKKEI begins the day with over 1.30% loss while declining below 19,900.
Given the fresh trade-war fears adding to the market’s worries, a light economic calendar in Asia will keep news/updates on the virus/trade on the driver’s seat.
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 stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.