S&P 500 Futures flirt with record top above 4,200 on downbeat T-bond yields

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  • S&P 500 Futures print mild gains after refreshing the all-time high the previous day.
  • News over US infrastructure spending, vaccine donation fail to entertain traders amid a light calendar.
  • US 10-year Treasury yields refreshed three-month low on Super Thursday.
  • G7, stimulus update and US Michigan Consumer Sentiment may entertain traders.

S&P 500 Futures remain mildly bid around 4,240, following the run-up to the record top of 4,248.88, during the early Friday. In doing so, the risk-barometer cheers the downbeat US Treasury yields and sentiment-positive updates concerning the US infrastructure spending and the coronavirus (COVID-19) vaccine donation. However, a lack of major catalysts and a start of the Group of Seven (G7) meeting seem to probe the market bulls of late.

US 10-year Treasury yields dropped to the lowest since March 03 the previous day, around 1.43% by the press time, in the aftermath of the European Central Bank (ECB) meeting and the US Consumer Price Index (CPI). While the ECB matched wide market forecasts with an upward revision to the economic projections, the US CPI strongly beat the expectations.

It should, however, be noted that the news suggesting a $1.7 trillion infrastructure agreement among the US bipartisan Senators offers additional support to the market sentiment. Also on the same line could be the news of the UK and the US readiness to donate 100 million and 500 million doses of the covid vaccines.

Alternatively, the start of the G7 probes market players as many thorny issues, including covid origin, taxes and Brexit, are likely to be discussed. The early impressions are very much positive for the EU and the UK markets but chatter to press China and taxes on giant MNCs seem to be worrisome.

In addition to the G7, the market’s fears of hearing the word “taper” during next week’s Fed meeting, backed by the latest US CPI, also limit the trading moves amid a light calendar.

Looking forward, the UK’s data dump and the preliminary readings of the US Michigan Consumer Sentiment Index for June, expected 84.0 versus 82.9 prior, could entertain traders but a sluggish session can’t be ruled out.

Also read: Wall Street Close: Bond buying propels S&P 500 to fresh record top

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