S&P 500 futures are still slightly bid near the all-time high.
Although upbeat US data contrasts with figures from China and Japan, aggressive Fedspeak keeps investors optimistic.
In the face of covid-led jitters, US Treasury yields have recovered from a weekly low.
Traders may be entertained by the US ISM Manufacturing PMI ahead of Friday’s NFP.
S&P 500 futures are still in the lead, up 0.20 percent at 4,297 as of early Thursday. Even as the Asia-Pacific area struggles with the coronavirus (COVID-19) strain, the risk barometer supports the market’s optimism about the West’s recovery from the pandemic.
Not only the positive ADP Employment Change and Chicago Purchasing Managers’ Index statistics, but also statements from Fed policymakers, reflect the health of the US economy. “I’d prefer to taper sooner than the end of the year,” Dallas Fed President Robert Kaplan recently reinforced his hawkish attitude.
In other news, Australia is dealing with viral strains and has put 80 percent of the population on lockdown, while Indonesia has declared a national emergency for July 02-20 owing to the covid comeback. According to the New York Post, the UK will have the most infections in 2021, but the US Centers for Disease Control and Prevention (CDC) remain hopeful about their vaccine and reject the necessity for masks. It’s worth mentioning that the Asia-Pacific region’s virus issues have been attributed to the slower jabbing.
On a different page, US Vice President Joe Biden calls for tighter regulations on large corporations, while Chinese President Xi Jinping reiterates the goal of implementing the “One China” policy in Hong Kong and Macau.
In terms of data, Japan’s manufacturing activity numbers showed a positive situation during the second quarter, according to the Tankan survey, whereas China’s Caixin Manufacturing PMI dropped in June.
By the time of publication, US 10-year Treasury yields had risen 2.2 basis points to 1.467 percent as a result of these moves.
Given the mixed sentiment and the upcoming busy day, not to mention the pre-NFP caution, investors may keep an eye on the US ISM Manufacturing PMI for a fresh boost, as the latest US numbers favor a strong jobs report and a challenge to the Fed’s easy money policy, posing a likely threat to equities.
Read: ISM Manufacturing Predictions for June in the United States Although expansion is expected to continue, how serious is the labor shortage?/n
