S&P 500 Futures print mild losses during pre-Fed trading lull on geopolitical risks
- S&P 500 Futures seesaw around all-time high while snapping six-day winning streak.
- Ire over Iran’s nuclear dreams, North Korean weapon testing and US-China talks entertain traders.
- US House passes two-month PPP extension bill but markets await Fed, Senate’s confirmation.
- Japan raises tariffs for US beef, readies Tokyo emergency announcement.
S&P 500 Futures waver around 3,950, currently down 0.03% near 3,951, during early Wednesday. In doing so, the risk barometer justifies investors’ dull mood ahead of the key monetary policy meeting by the US Federal Reserve.
The pre-Fed mood is strong enough to welcome market fears emanating from multiple trade and geopolitical headlines. The same pushes traders to pay a little heed to the recent passage of the public-private partnership (PPP) extension for two months in the US House.
Not only the International Atomic Energy Agency (IAEA) report suggesting Iran’s increasing Uranium build but the UK’s readiness to clampdown such efforts beyond nuclear deal also signal fresh Middle East saga. On the same line, CNN came out with the news suggesting US knowledge of North Korea’s increased weapon testing. This follows the previous day’s warning to America, from the hermit kingdom, over Washington’s ties with South Korea and military drills.
Further, the US sanctions Russia due to the election meddling while Japan increases duties on American beef for 30-days. Additionally, the Biden administration looks set for robust and frank talks with China during this week’s meeting.
Above all these, European rejection of the AstraZeneca vaccine and a light calendar also play their role but got mostly ignored.
Other than the S&P 5010 Futures, stocks in Asia-Pacific also hold lower ground amid fresh challenges to the risks. Also portraying the risk-off mood could be the firm yield of the US 10-year Treasury around 1.62%.
However, bears are cautious enough ahead of the Fed’s meeting and a lack of major catalysts.
Read: Federal Reserve Preview: The Good, the Bad and the Ugly edition, three critical things to watch