Search ForexCrunch
  • S&P 5600 Futures extend the previous day’s pullback from the highest in six weeks.
  • Fed’s Daly, RBNZ’s Hawksby favor further monetary easing, US Congress still undecided over stimulus.
  • Hold in the virus vaccine trials, Brexit woes and worsening COVID-19 conditions in Europe, UK combat IMF’s cautious optimism.
  • Japanese Industrial Production, central bankers’ speeches will be in the spotlight.

S&P 500 Futures seesaw around 3,505 while portraying the indecision of intraday traders during the early Wednesday. The risk barometer marked the heaviest losses in over a week while stepping back from the highest since early-September.

Also read: Wall Street Close: Uncertainty wipes the floor with the bulls

While the US policymakers’ inability to offer the much-awaited fiscal stimulus joins a brake in the coronavirus (COVID-19) vaccine trials to challenge the risk-tone, no trade agreement between the UK and Brussels and fears of national lockdowns in Europe add burden to the trading sentiment. Identifying this, policymakers from the Federal Reserve and the RBNZ have recently struck a downbeat tone. Federal Reserve President of the San Francisco Mary Daly and the Reserve Bank of New Zealand (RBNZ) Assistant Governor Christian Hawkesby both highlighted the market’s need for further easy money in their recent public appearances.

On the contrary, the International Monetary Fund’s (IMF) upward revision to the global economic outlook and increasing odds of the Democratic victory in the next month’s US presidential election should have ideally favored the risk-takers, which could not.

Talking about the data, the weakness in the US Consumer Price Index (CPI) crosses roads with Australia’s upbeat Westpac Consumer Confidence. Though, there isn’t anything major to note afterward as markets await a speech from China’s President Xi Jinping.

Other than that, the global economic calendar is mostly silent with a few policymakers from BOE, ECB and Fed likely to offer intermediate entertainment. However, overall market mood is likely to remain sluggish unless the US Congress announces any aid package and/or the COVID-19 vaccine rolls out.