- S&P 500 Futures fails to extend the previous day’s recovery moves from 3005.
- Fears of hidden coronavirus cases in the US, sanctions on Iran confront the Fed’s move.
- BOJ shows readiness to act while trade war remains on the desk.
S&P 500 Futures print 0.22% loss while taking rounds to 3,063 amid the initial hour of Tokyo open on Friday. The risk barometer recently came under pressure amid fears of the wider coronavirus (COVID-19) stand in the US that reported. Though, the Fed’s action, as well as a lack of major data/events cap the market, moves off-late.
In contrast to the S&P 500 Futures, the US 10-year Treasury yields and Japan’s Nikkei strike upbeat signals by the press time.
The US Centers for Disease Control and Prevention (CDC) Director Robert Redfield earlier said, as per the Washington Post, “Our best estimate right now is that for every case that’s reported, there are 10 other infections.” The top health official also estimated that 92 to 95 percent of the U.S. population is still susceptible to the virus, per the news. The latest figures from the CDC suggest that there are 37,667 new cases with 692 deaths in America on June 25.
Other than the virus woes, trade war fears and geopolitical tension is also challenging the market’s mood. After the US threatened to levy tariffs on the EU/UK goods, European policymakers in Brussels warned of it negatively affecting the EU-US ties whereas German Chancellor attack Nordstorm 2 project. Further, US Secretary of State Mike Pompeo earlier announced fresh sanctions on Iran following the Arab nations challenged the Trump administration’s measures on Thursday.
Elsewhere, BOJ Governor Haruhiko Kuroda feared magnified GDP contraction due to the COVID-19 following mixed Tokyo Consumer Price Index (CPI) data. Additionally, talks of a blast in Tehran also tried to move the markets but failed.
Given the absence of Chinese traders amid a lack of major data/events from elsewhere, traders may witness a quiet Asian session. However, any surprise announcements concerning the virus, trade and geopolitics might have a higher reaction.
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