- S&P 500 Futures repeat the pattern of gains-following-losses while trying to recover the early-month losses.
- India-China headlines join recent optimism at Japan to trim the previous losses amid a light calendar, thin news feeds.
- US CPI will be the key data, Sino-American tussle, Brexit and stimulus talks to play their roles as well.
S&P 500 Futures attempt recovery from 3,342, currently up 0.50% to 3,357, during the early Friday. The risk barometer has been trading on and off since the week’s start but prints a second week of losses considering the heavy fall of Tuesday and Thursday.
Read: Wall Street Close: The market volatility contiues, all benchmarks gave up gains
The joint statement from Indian and Chinese military personnel to ease the border tension offers the latest pullback in the market’s risk-tone sentiment. The news came after both the Asian neighbors were jostling for borders and triggered war risks.
The positive news joins receding coronavirus (COVID-19) led activity restrictions in Tokyo as well as the record recovery in the BSI Large Manufacturing Conditions Index for the third quarter (Q3).
Earlier, the Trump administration continues to keep TikTok on the sellers’ radar while also canceling over 1,000 visas of Chinese residents citing the security risk.
While the recently positive risk sentiment attempts market recovery, supporting Gold and AUD/USD, broad challenges to the risk from Brexit and the delay in the US fiscal package keeps the market mood sluggish.
Against this backdrop, Japan’s Nikkei 225 gains 0.22% but Australia’s ASX 200 and New Zealand’s NZX 50 are down around 1.0%. Further, stocks in China are also mixed whreas the US 10-year Treasury yeilds struggle for clear direction around 0.68% by the press time.
As a result, traders await a few more signals to confirm the latest shift in bias. Hence, today’s US Consumer Price Index (CPI) data for August will be the key. Forecasts suggest a notable recovery in the headline inflation numbers from 1.0% to 1.2%, which in turn can help the global market to recover some of the latest losses. Though, the performance of technology and automobile shares have been a wild guess off-late and should be watched for a clear direction.
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