- US stock futures register heavy declines while Treasuries seem to ignore the risk-off.
- US virus updates, comments from Fed’s Kashkari seems to have weighed on the trading sentiment.
- Most global markets are off due to Easter Monday but China and Japan remain active in Asia.
A mixed play between the US stock futures and Treasury yields can be witnessed amid a lack of major activity during Monday’s Asian session.
While the US futures linked to S&P 500 and DJI30 mark nearly 1.3% loss to 2,740 and 23,330 respectively, the US 10-year Treasury yields register one basis points of increase to 0.733% by the press time.
The risk aversion might have take clues from the worsening coronavirus (COVID-19) conditions in the US. The world’s largest economy is currently the global hotspot while crossing Italy with over 530,000 infections and more than 20,000 deaths due to the pandemic.
Although US President Donald Trump keeps trying to placate sellers, the Federal Reserve policymakers are against any optimism at least for the second quarter (Q2) of 2020.
After Thursday’s downbeat comments from the Fed Chair Jerome Powell, Minneapolis Federal Reserve Bank President Neel Kashkari recently cited fears that the US economy faces ‘long, hard road’ to recover from coronavirus.
It’s worth mentioning that numbers of the virus cases have mostly receded from Europe while the UK PM Boris Johnson left the hospital after being treated during the last week.
Looking forward, traders will keep eyes on the virus updates amid a lack of fresh data/events, as well as Easter Monday holiday, for fresh impetus.
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