S&P 500 Futures ease from six-week high as Treasury yields refresh multi-day top

S&P 500 Futures snap six-day uptrend to print mild losses around September high.
US 10-year Treasury yields rise for the fifth consecutive day towards May’s top.
Fed tapering chatters, China’s Evergrande consolidate market moves amid a quiet Asian session.

S&P 500 Futures portray the market’s cautious mood, down 0.18% intraday around 4,520 during early Thursday.

The risk barometer takes clues from the hawkish comments of the US Federal Reserve (Fed) policymakers and updates surrounding China’s struggling reality firm Evergrande to print mild losses, the first in the last six days.

Tapering signals from Federal Reserve Governor Randal Quarles and Cleveland Fed President Loretta Mester have been the latest to pump the US 10-year Treasury yields, probing the equity bulls. That said, the US 10-year Treasury yields remain firm around 1.66%, up two basis points (bps) to refresh the highest levels since May.

Also challenging the mood were the headlines concerning Evergande. Earlier in Asia, it was revealed by Bloomberg that Evergrande failed to seal the asset sale deal with Hopson Development Holdings. The firm’s shares are ready to go live in Hong Kong for the first time after October and hints at an over 10.0% fall in the beginning.

Elsewhere, China’s two hypersonic weapon tests also should have weighed on the equity futures while the Wall Street benchmarks flashed gains on upbeat earnings and hopes of US stimulus.

Read: US Stocks Forecast: Wall Street mixed as US yields take the spotlight

It should be noted that the US Dollar Index (DXY) fails to benefit from the consolidation in the market sentiment, printing a seven-day downtrend around 93.55 near the three-week low by the press time.

Moving on, the risk catalysts may entertain traders amid a light calendar ahead of the US session readings comprising weekly jobless claims and second-tier housing data, not to forget Fedspeak.

Share: Feed news

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.