S&P 500 Futures Show Extreme Risk In Global Equity Markets
Satendra Singh | Jun 28, 2020 05:07AM ET
On analysis of the movements of S&P 500 Futures, in different time frames, the Federal Reserve’s move ordering 33 banks to suspend stock buybacks and limit their dividend payments in the third quarter could test banks' ability to survive even in a worst-case pandemic scenario. Growing fear over the rise in coronavirus cases may continue to disrupt reopening hopes for some more time until a successful biological cure for COVID-19 is found.
Friday’s closing level of S&P 500 Futures shows extreme risk in global equity markets, which look to be approaching a recessionary phase; amid growing fear of the disastrous impact of the pandemic over the global economy.
Finally, the strength of Gold Futures illustrates the elevated level of uncertainty in global equity markets.
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