- S&P 500 Futures wavers around multi-day top after strong start in Asia.
- Dovish Fed tamed rate hike fears, for now, but US-China meeting probes the bulls.
- BOE, US Jobless Claims and geopolitical catalysts are other challenges to the latest risk-on mood.
S&P 500 Futures print 0.30% intraday gain as bulls flirt with the record top of 3,980, currently around 3,975, during early Thursday. The risk barometer initially gained from the US Federal Reserve’s (Fed) rejection to immediate rate hike fears. However, chatters surrounding the Sino-American meeting seem to weigh on the quote off-late.
With the Fed’s intact “no rate hike until 2024″ verdict joining hopes of faster economic recovery, global equity buyers have the reason to stay hopeful. However, a close reading of the dot-plot can reveal that discomfort prevails among the policymakers as some of them have finally backed early rate hikes.
On the contrary, China’s readiness to propose scaling back of the Trump-era measures for Beijing confronts the American mood to stay firm and frank during their first virtual meeting. This recently led China to lost enthusiasm over the much-awaited meeting that might have refreshed the US-China relations.
Not only the tussle between the US and China but Biden Administration’s latest dislike over North Korean warnings and Iran’s nuclear build join raw over AstraZeneca vaccine to weigh on the market sentiment.
Amid these plays, stocks in Asia-Pacific trade mixed while the US 10-year Treasury yield adds two basis points (bps) while picking up bids to 1.66% by the press time.
Moving on, global investors are likely to have an active day as the BOE’s Super Thursday and European Medicine Authority’s (EMA) verdict on the AstraZeneca covid vaccine joins the US-China meeting. It should, however, be noted that the post-Fed mood is likely not to fade unless witnessing a strong disappointment.
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