S&P 500: Futures print mild losses above 3,250 as US-China tension escalates

• S&P 500 Futures snap four-day winning streak while easing from 3,270.88.
• Market sentiment sours as Chinese embassy confronts US President Trump’s readiness to take more punitive measures against the dragon nation.
• Uncertainty surrounding the American fiscal package, a light calendar limits the market moves amid holiday in Japan.
• Comments from Tesla’s Musk stood on the positive side, US Jobless Claims will decorate the calendar.

S&P 500 Futures recede to 3,261.62, down 0.13% on a day, during the early Asian session on Thursday. In doing so, the risk barometer catches a breather after rising for four consecutive days amid fresh tension between the US and China. Also troubling the traders is the holiday in Japan, a lack of clarity for American aid package and a light calendar.

China’s embassy in the US recently said, “We strongly condemn and firmly oppose the abrupt demand for closure of Chinese consulate-general in Houston.” The representative of the dragon nation also mentioned, “this is a political provocation. we urge the US to immediately revoke this erroneous decision. Otherwise, China will have to respond with legitimate and necessary actions.”

Earlier during the day, US President Donald Trump’s threat to close more Chinese diplomatic sites after ordering the dragon nation’s consulate to evacuate Houston. In retaliation to the same, the Asian major has already warned the Trump administration to leave from Wuhan.

Other than the US-China story, lack of clear signals from the US Senate, concerning the much-awaited fiscal stimulus to combat the economic challenges due to the coronavirus (COVID-19), also tames the previous risk-on sentiment. Even so, the global traders remain mostly quiet amid a lack of major data/events as well as off in Japan.

Market players may now await the US Jobless Claims for fresh impetus Meanwhile, qualitative catalysts could offer intermediate moves and weigh on the risk-tone sentiment.