- S&P 500 Futures snap three-day winning streak, drops after printing mild gains in early Asia.
- Virus woes, vaccine jitters and US-China tussle join stimulus hopes to keep US Treasury yields firmer around one-week top.
- Wall Street closed mixed, US NFP will be the key.
S&P 500 Futures extend pullback from 3,965 to print the first negative daily performance in four during Tuesday’s Asian session. The risk barometer earlier benefited from a consolidative move by the US 10-year Treasury yields before marking the 0.10% intraday losses by the press time.
While tracing the clues for the latest declines, the pick-up in the US Treasury yields could gain major attention. Behind the moves could be hopes of a $3.0 trillion infrastructure plan of US President Joe Biden or his comments suggesting 90% of the adult U.S. population will be eligible for vaccination by April 19.
It should be noted that a 31-month high of the Dallas Fed Manufacturing Business Index for March and strong early signals for US jobs also favor the bond bears.
Meanwhile, escalating coronavirus (COVID-19) woes in Europe and Australia join the Western tussle with China to weigh on the sentiment amid a light calendar in Asia.
Though, the recent cooperation among the UK, France and Germany could be considered risk-positive while the US steps to eye easy diplomatic visit to Taiwan seems to challenge the mood.
Amid these plays, stocks in Asia-Pacific trade mixed, mostly down, whereas the US 10-year Treasury yield rises to 1.726% by the press time.
Looking forward, Traders should keep their eyes on the risk catalysts amid a light calendar and the pre-NFP cautious sentiment, not to forget the holiday-shortened week.
Also read: Wall Street Close: Record close for the Dow but despair for the small caps
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