S&P 500 Futures contradict Nikkei 225’s mild gains, US Treasury yields remain softer amid sluggish session

• Global markets remain mixed during a likely first quiet day in the volatile week.
• S&P 500 Futures, US T-bond yields print losses but Nikkei 225 rises for the fourth consecutive day.
• Mixed concerns over Russia-Ukraine, light calendar restricts market moves of late.
• Biden-Xi call, updates over Putin-Zelenskyy meeting will be important to follow for fresh impulse.

Having witnessed multiple volatile days in the week, global financial markets remain mostly quiet during Friday’s Asian session. In doing so, the markets portray the traders’ inaction amid a light calendar and mixed updates over the Russia-Ukraine issue.

While portraying the mood, the S&P 500 Futures drop 0.40% whereas the US 10-year Treasury yields drop for the second consecutive day after rising to a three-year high on Wednesday. On the positive side, Nikkei 225 and ASX 200 print mild gains by the press time.

Continued peace talks between Ukraine and Russia fail to provide any strong outcome and weigh on the market sentiment. On the same line is the Western warning that Moscow may contemplate the use of nuclear weapons, as well as fears of Russia’s default despite paying bond coupons to a few investors.

Furthermore, China’s step back from previously hawkish comments to ease regulatory crackdown on the property and IT companies joined downbeat comments from the Organisation for Economic Cooperation and Development (OECD) to add to weigh on the market sentiment. “The global economic growth will be more than 1% lower this year due to the Ukraine crisis,” said the OECD.

On the positive side, a continuation of the talks and today’s phone call between US President Joe Biden and China’s President Xi Jinping keep traders hopeful of overcoming the grim conditions. Also keeping the buyers positive is the downbeat US Treasury yields and softer US dollar performance.

That said, the mixed sentiment can continue to weigh on the US dollar and help commodities, as well as the Antipodeans.

Moving on, qualitative catalysts will be crucial for market directions amid a light calendar day ahead.

Read: Forex Today: Dollar fights back amid talks about chemical weapons