S&P500 Futures rise, yields steady after big moves, central bankers in focus

S&P500 Futures are slightly up, and interest rates have steadied after some big changes. People are paying attention to central bankers. The mood in the market is somewhat positive, but it’s struggling to stay as upbeat as yesterday. This week, there are important events and data to watch out for. The Jackson Hole Symposium is starting, and there’s also info on US Durable Goods Orders, housing, and other activities. Despite things being quiet, S&P500 Futures went up by 0.5% to 4,470. This happened even though there hasn’t been much momentum lately. The futures for benchmark stocks had their biggest increase in a month yesterday. That’s because traders were happy about global PMI numbers for August.

In a similar way, the yield on the US 10-year Treasury bond is moving around 4.20%. It stopped falling after two days of going down from its highest level since 2007. This happened after the biggest drop in three weeks. It’s important to note that not-so-great Purchasing Managers Index (PMI) numbers for August from important countries made people worry about central bank policies. However, there were also positive headlines about US-China trade relations that helped keep traders positive.

For the US, the S&P Global Manufacturing PMI for August was 47.0, which is lower than the expected 49.0 and the previous month’s 49.3. The Services PMI also dropped to 51.0, when it was expected to be 52.2, and the previous month’s was 52.3. So, the overall S&P Global Composite PMI for the US dropped to 50.4 from the previous 52.0. On a brighter note, US New Home Sales went up by 4.4% in July, compared to the previous -2.5%.

Not just in the US, but also in the UK, Australia, Eurozone, and Germany, the first readings about activity were not very good. This challenged the idea that central banks would be more aggressive, which people started to think about in late July, and it affected the overall mood. Japan’s PMI got better, but the Bank of Japan is still keeping its easy money policy.

On a different topic, the US Commerce Secretary, Gina Raimondo, is going to visit Beijing next week. This is making people feel more positive. There’s also news that the US is removing sanctions from 27 Chinese entities, which could lead to better diplomatic relations. Technology stocks on Wall Street and overall stock markets are also doing well, which adds to the positive feeling.

In the coming days, there will be news about US Durable Goods Orders, the Chicago Fed National Activity Index, Kansas Fed Manufacturing Activity, and weekly Jobless Claims. But most people are looking forward to the two-day Jackson Hole Symposium for clearer direction.