- S&P 500 Futures ease from monthly top flashed the previous day.
- US Treasury Secretary Yellen, corporate tax and Biden’s Brexit role weigh on sentiment.
- China headlines add to the downbeat risk appetite but stimulus, vaccine hopes keep bears away.
S&P 500 Futures takes a U-turn from a one-month high, down 0.15% to 4,221, amid Monday’s Asian session.
The risk barometer gained upside momentum, also refreshed monthly high, after Friday’s US jobs report tamed the tapering bets. However, weekend headlines seem to disappoint market bulls by flashing mixed clues on stimulus, Brexit and covid.
Having initially favor US President Joe Biden’s $4.0 spending plan, US Treasury Secretary Janet Yellen signaled higher rates are good for the Federal Reserve (Fed), which in turn signals challenges to the easy money and weigh on the market’s mood.
On the same line, US Secretary of State Antony Blinken vowed, per Axios, to hold China accountable on covid origins and offered extra burden on to the sentiment.
Furthermore, The Times’ report suggesting US President Biden’s likely meddling into the Brexit and chatters over the UK’s support to Australia for its trade complain versus Beijing keep market’s pressured amid a quiet session in Asia.
Additionally, fears of a covid resurgence in Australia and China’s readiness to jab 70% of the population by December try to confuse market players.
It’s worth noting that uncertainty over the Fed’s next move keeps the global traders worried but the risk-aversion wave isn’t favoring the US Treasury yields, as they should. Hence, gold and WTI hold the upper ground while stocks are consolidating around the early 2021 tops.
Moving on, investors should pay attention to the central bankers’ hints and the covid developments for fresh impulse.
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