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  • S&P 500 Futures keep the bears happy near one-week low.
  • Federal Reserve’s stress test for large banks amid fears of UK’s another lockdown and Sino-US war over Taiwan.
  • Mixed US data, Wall Street’s losses keep the bears hopeful ahead of today’s Michigan Consumer Sentiment.

S&P 500 Futures drops to 3,335, down 0.48%, during the early Friday. The risk barometer tracks Wall Street’s mild losses to print a three-day losing streak. Also weighing on the equity derivative could be the US Federal Reserve’s (Fed) another stress test for large banks and a lack of major data/events.

Furthermore, the UK scientist group’s push for a national lockdown of nearly two weeks and Global Times’ direct war signals to the US, over American diplomat’s visit to Taiwan, also drags the S&P 500 Futures off-late.

On Thursday, global markets got hit by the Fed’s refrain from adding more money. The same helped the US dollar index (DXY) to mark the biggest gains in nearly four weeks before reversing the move and closing the day on the negative side by the end of the day.

Not only the US stocks and derivatives but the Asia-Pacific shares were also downbeat the previous day. It’s worth mentioning that equities in Japan, Australia and New Zealand are mildly offered by the press time whereas the US 10-year Treasury yields stay unchanged around 0.685% as we write.

While the economic calendar lacks any major data/events ahead of the US session, global markets may extend the previous day’s moves unless any surprises erupt from by risk factors. These include Brexit, coronavirus (COVID-19) and the US-China tussle off-late.

During the American session, Michigan Consumer Sentiment for September, expected 75.00 versus 74.1 prior, will be the key after the recent softness in the Philadelphia Fed Manufacturing Index and a slight rise in American Jobless Claims.