S&P 500 futures pull back on market indecision

• Market sentiment remains subdued as traders await further clues for clear guidance.
• A light schedule and conflicting headlines add to the confusion for traders.
• S&P500 futures break three-day uptrend.
• US Consumer Confidence and speeches from central bankers will be important to give a new impetus.

Global traders fade early week optimism as they look for new directions during the Asian session on Tuesday. The feeling of weakness could also be related to the cautious mood before the key data/events.

As the mood is portrayed, S&P 500 futures pull back from a two-week high hit the previous day, down 0.15% intraday to around 3,897 points.

Along the same lines, the 10-year US Treasury yield was down 1.1 basis points (bps) to 3.18% at time of writing. Benchmark US bond coupons have risen for the past two consecutive days.

A light calendar in Asia joins traders’ indecision amid talk of inflation and recession to defy market moves. That said, anxiety over the US CB Consumer Confidence for June, whose previous result was 106.4, as well as the European Central Bank (ECB) Forum, also weigh on risk appetite.

It is worth noting that the US dollar started the week trending lower before consolidating losses amid a state of risk aversion. That said, the mixed US data, as well as the quarter-end positioning, could be related to the dollar’s latest performance.

On the other hand, the headlines around Russia and China appear as the main challenge to market sentiment. Along the same lines are updates regarding the next moves by central banks, as well as recession fears.