- S&P 500 Futures struggle to extend Friday’s strong gains.
- Covid fears in Asia escalate but vaccine hopes soothe the pains.
- Trade/political headlines, Brexit woes also try to recall the momentum but fail amid off in Australia, New Zealand.
S&P 500 Futures mark a limited recovery following its bounce-off intraday low while taking rounds to 4,172. In doing so, the risk barometer reverses early Asia’s mild losses despite the dull momentum due to ANZAC Day off in Australia and New Zealand.
In the background, Japan’s third virus-led emergency joins India’s rallying covid infections to portray the coronavirus (COVID-19) woes. However, news that the US lifts a ban on the use of the Johnson & Johnson vaccine as well as readiness to help New Delhi by the US, Russia and Saudi Arabia battle bears.
Meanwhile, the US is up for pushing global leaders to criticize China’s moves in Xinjiang while the UK has already called Beijing’s actions against human rights. Further, the European Union (EU) also dislikes the dragon nation’s strong military in the South China Sea and contributes to the market challenges.
Elsewhere, the EU and the UK jostle over the Northern Ireland (NI) protocol ahead of the April 27 deadline for the Brexit deal.
It should, however, be noted that the pre-Fed cautious sentiment and the mixed clues, stated above, keep markets dry.
Even so, the US dollar index (DXY) refreshes a two-month low while the US 10-year Treasury yields remain directionless around 1.56% by the press time.
Looking forward, a lack of major data/events and an offer in the key Pacific markets can keep investors struggling for momentum ahead of the US Durable Goods Orders for March, expected +2.5% versus -1.2% contraction.
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