2025-11-05 10:51:00
US futures are down slightly, with tech shares being the laggard once again. S&P 500 futures are down 0.2% but at least is seen a more controlled mood as compared the selling earlier in Asia trading. Futures were down as much as 0.8% earlier in the day. Meanwhile, Dow futures are up 0.1% but Nasdaq futures down 0.3% for the time being.
The slight bounce in the risk mood is also reflected in broader markets. Bitcoin is holding the bounce back following a brief dip below $100,000. And in the major currencies space, USD/JPY is seen nudging back up to near flat levels at around 153.70 after having dropped towards 153.00 earlier in the day. Even the antipodes have recovered some poise to sit little changed near the middle of their respective daily ranges.
US and China are continuing to play nice in easing trade tensions i.e. less tariffs, scrapping certain entity lists. However, the big picture status is still one that remains uncertain with key pledges not likely to be sustained.
One clear evidence of that is China suspending some tariffs but opting to maintain the 13% tariffs on US soybean imports. That will still make it unsustainable for Chinese buyers to stick with that for a prolonged period. So, Beijing might just offer a few months of a gesture of goodwill before cutting back on soybean purchases again – with tariffs being the easy excuse to shift back buying to Brazil.
Besides this, the US government shutdown also looks set to stretch on to the longest in history with no clarity on when it might end still. No data, no party. And no change to the Fed outlook for the time being.
As for today, things are looking better than overnight and in Asia trading at least. However, the coast isn’t clear just yet. Things are still looking vulnerable with the risk selloff certainly shaking up investors. All of a sudden everyone is starting to be nervous on AI darlings Nvidia and Palantir. That will certainly make for a big test of dip buyers’ resolve in the day(s) ahead.
