S&P 500: Futures struggle to refresh two-week top as virus, Hong Kong news heavy trading sentiment

• S&P 500 Futures probe the four-day winning streak, recently weakened from 3,155.
• The US registered largest daily increase in virus cases by any country on Thursday.
• US Secretary of State Mike Pompeo, Hong Kong Activist Nathan Law attack China’s Communist Party (CCP).
• Light calendar, US session off could restrict market moves.

S&P 500 Futures prints mild loss of 0.10% while declining to 3,126 during the initial hour of Tokyo session on Friday. In doing so, the risk barometer fails to extend the previous four-day winning streak. Though, the quote stays near a two-week high while keeping Monday’s recovery moves from 2,983.

Market sentiment turned sour off-late as the surge in the coronavirus (COVID-19) cases from the US dims hope of economic restart. The new cases from America surged over 53,000 on Thursday. This becomes the third daily record while also being the highest single-day rise across the globe.

Elsewhere, the US diplomat repeats fashion to criticize Chinese move to secure more power in Hong Kong. The action got additional strength from Hong Kong activist who urged global policymakers for help. However, North Korea becomes the savior for Beijing as the hermit kingdom’s Ambassador to China Ji Jae-ryong supported the Communist Party of China in their move.

It should also be noted that China’s threat to levy 12% tariffs on Australian beef and fears of widespread job losses in the UK also weighed down the risk-tone sentiment.

Amid all these catalysts, Japan’s Nikkei 225 print mild gains of 0.60% while taking rounds to 22,270 whereas the US 10-year Treasury yields don’t move from 0.67%.

Looking forward, a lack of major data, except for China’s Caixin Services PMI and UK’s second readings on the Services PMI, will offer a dull trading day ahead.