S&P 500 Futures, US Treasury yields retreat amid market’s indecision

• Market sentiment remains sluggish as traders await fresh clues for clear directions.
• Light calendar, mixed headlines add to the traders’ confusion.
• S&P500 Futures snap three-day uptrend, US 10-year Treasury yields consolidate two-day gains.
• US CB Consumer Confidence, central bankers’ speeches will be important for fresh impulse.

Global traders fade the week-start optimism while searching for fresh directions during Tuesday’s Asian session. The sluggish sentiment could also be linked to the cautious mood ahead of the key data/events.

While portraying the mood, the S&P 500 Futures retreat from a two-week high flashed the previous day, down 0.15% intraday around 3,897 at the latest. In doing so, the key gauge of the US equity futures prints the first daily loss in four.

On the same line, the US 10-year Treasury yields dropped 1.1 basis points (bps) to 3.18% by the press time. The benchmark US bond coupons rose during the last two consecutive days.

A light calendar in Asia joins traders’ indecision amid the inflation and recession chatters to challenge the market moves. That said, the anxiety ahead of the US CB Consumer Confidence for June, prior 106.4, as well as the European Central Bank (ECB) Forum, also weighs on the risk appetite.

It should be observed that the US dollar began the week on a softer footing before consolidating the losses amid a risk-off mood. That said, mixed US data, as well as the quarter-end positioning, could be linked to the latest performance of the greenback.

On Monday, US Durable Goods Orders rose to 0.7% in May, versus 0.1% expected and 0.4% prior. That said, the widely tracked Nondefense Capital Goods Orders ex Aircraft also cross 0.3% market forecasts and previous readings to increase by 0.5% during the stated month. Further, the US Pending Home Sales also surprised the USD bulls with 0.7% MoM figures for May versus -3.7% expected and -4.0% prior. The YoY figures, however, came in negative to -13.6% versus -9.8% prior. Further, Dallas Fed Manufacturing Business Index for June dropped to the lowest level since May 2020, to -17.7 versus -3.1 forecasts and -7.3 prior.

Elsewhere, headlines surrounding Russia and China appear as the major challenge to the market sentiment. On the same line are updates concerning the major central banks’ next moves, as well as fears of recession.

Moving on, the US CB Consumer Confidence for June, prior 106.4, will precede Wednesday’s ECB Forum as an important catalyst to determine short-term market moves.

Also read: Forex Today: Uncertainty keeps majors ranging ahead of central bankers’ words