S&P 500 futures down by nearly 1%
Stocks are seeing a pullback after a solid start to the new week yesterday, with European indices keeping around 1% losses for the most part and US futures also seen down by around 0.9% to 1.0% ahead of North American trading.
The real challenge for equities at this stage is the constant barrage of negative headlines surrounding recent coronavirus developments across the globe.
Melbourne just returned back to lockdown earlier today, while cases are continuing to soar in the US and India and there are concerns involving the likes of Tokyo and Iran.
If anything, the constant heap of headlines will just put a further dent in hopes for a quick and sustained recovery in the global economy and that is a major risk to consider.
However, equities are still largely following the same playbook over the last three months i.e. "central banks have got our back".
The battle between virus fears and cheap money will likely be the embodiment of trading sentiment in Q3 and only time will tell how this will all play out in the months ahead.
Just be mindful that we are also stepping closer to the US elections - less than four months now - and US government stimulus will be due to run its course at the end of July.
Alongside earnings season over the next few weeks, those will also add to key considerations for investors when viewing the market this month.
